Hello everyone! Say, have you ever heard of Walmart? I’m sure you have. Walmart is an example of a big box retailer. The term “big box” comes from the layout of large retailers. Usually the layout resembles a large box. The most important characteristic of a big box store, however, is its large amount of floor space. Usually, for a store to be considered as a big box retailer, it needs to have at least 50,000 square feet of floor space. Even though you probably know many big box retailers, it’s actually better to avoid them and shop at smaller stores.
The first reason to avoid big box retailers is that they undermine competition, local businesses, and entrepreneurism. The business models of big box retailers are to dominate market share. This means that they grow at the expense of competitors, which are typically local businesses. Big box retailers are able to beat out smaller retailers by using massive advertising campaigns, the ability to pressure suppliers on wholesale prices, and many other techniques. This ruins competition and entrepreneurism, which are two important pillars of our economic system. Even though many big box retailers might seem to have perfect deals right now, you as a consumer will suffer due to them in the long run. Big box retailers are known to increase prices as they gain market share and reduce competition, so eventually, shopping at big box retailers won’t be worth it. Unfortunately, at that point, they will be your only choice. Choosing local businesses will instead boost competition and entrepreneurism so prices will never be unreasonable. These big box retailers need to keep shelves stocked, and one way that they do this is to purchase foreign products. These products are usually not made in the best conditions. However, if you go to a local tailor to buy a dress, you are assured that the dress is made in good conditions and is high quality.
The second reason to avoid big box retailers is that they have terrible conditions for their workers. Many big box retailers have low wages, a lack of health insurance, and no pension benefits. They also actively try to discourage worker union formation. Whenever a big box retailer is set up, the local businesses nearby are destroyed. This means that the previous employees of those local businesses are forced to work in worse conditions at that big box retailer. If you purchase products from a small business, you are not only getting a good product/service for yourself but you are also supporting good working conditions. This is a win - win situation! Choosing local businesses will support workers’ working and living conditions.
When big box retailers are set up, they eliminate the natural resources and open space of the place that they are located in. According to the American Farmland Trust, the U.S. loses roughly 3,000 acres of productive farmland to this daily. This harms not only the natural resources of the US, but also destroys many ecosystems and is terrible for the environment. Local businesses, however, have much less of an impact on the environment as they typically take up much less space. Even though these large retailer boxes might look good when they’re just opening, they will eventually become an eyesore. Once these large retailers either move out or go out of business, their oversized buildings and sprawling parking lots will ruin the look of your neighborhood. Small businesses, however, create aesthetically pleasing town centers that are easily maintained.
Last but not least, big box retailers negatively impact the environment around them. Some examples of this include selling low quality products which leads to an increase in usage and waste and increasing carbon emissions. Several studies and reports have projected that in order to shop at a big box retailer, customers need to drive more, which causes an increase in carbon emissions. Furthermore, consumers will end up purchasing basic dairy and meat products which originate from factory farms, which cause a significant amount of emissions. If you shop at a small business, you will be doing your part in order to reduce waste and carbon emissions, among others.
Since big box retailers undermine our economic system, have terrible working conditions, harm the environment, and ruin the look of your neighborhood, it’s best to avoid them. The better choice is local businesses, which do the opposite of what these big box retailers do. Be sure to avoid big box retailers this holiday season and support local businesses. You can learn more about how to do that by reading our other blogs.