Local businesses in the inner city are urging the community to shop locally this month.
Several City Chambers of Commerce are running Shop local initiatives during August to boost the local economy.
“We want to encourage local community spending because every dollar that is spent locally stays in the local economy,” said Sue Ritchie, Vice President of the 2010 Darlinghurst/ Surry Hills Business
Partnership, who is backing the campaign.
“Small independent businesses are something we want to nurture,” she said. “It’s very important the local economy supports them to keep them alive.
“They generate local jobs and create a real sense of community.”
Head of the Political Economy Department at Sydney University, Dr Stuart Rosewarne, agreed.
He said supporting local businesses was vital to “maintain[ing] the robustness of the local community.
“It brings the community together in a way that doesn’t normally happen in big plazas and CBD shopping.”
He also noted the economic benefits that local businesses have on their communities.
“Local businesses tend to employ those who live locally… and those employees spend their earnings in that local area” said Dr Rosewarne.
“So there’s a cumulative gain not only socially but also economically.”
The campaign comes at a difficult time for retailers with a slump in consumer confidence and spending.
Governor of the Reserve Bank, Glenn Stevens gave a speech last month titled “The Cautious Consumer”and blamed the drop in spending on a trend among consumers to save their pay cheques or pay off debt.
Local businesses say they’re feeling the squeeze too.
“Retail hasn’t been great lately,” said Carole Cherry, owner of boutique store Urban Oasis.
“But we’ve actually noticed people are still coming in. They’re just not paying or buying as much.”
The store can no longer afford to make donations to local schools in the area.
“We actually can’t afford to but we will once we get back on track,” said Ms Cherry.
Urban Oasis opened its doors eight years ago and sells exclusively Australian fashion, accessories and giftware.
“It’s a very happy place. We’ve got a lot of local customers,” said Ms Cherry.
Ms Ritchie said local fashion stores like Urban Oasis “cater for people with individual taste”, unlike the “juggernauts of Westfield… [who] only cater for a more generic flavour.”
Shop Local will run throughout August and will include a 2010 Fashion Parade in Taylor Square on August 20.
According to a retail diversity study conducted by Civic Economics in the US, even a small shift in customer spending can stimulate the local economy.
The study found that if ten per cent of resident spending was redirected toward local businesses in San Francisco, it would generate a $192 million economic boost and generate almost 1300 new jobs.
