Old Navy's grand opening in Prince George last week has revealed our small town stripes once again. Protectionist tendencies have us repeating the same questions we asked ourselves when Wholesale Sports, Bulk Barn, and many other retail chains came to town: "How will our independent businesses compete against these giants?"
"Will our small town character be eroded by yet another American retail takeover?"
While competition in business is generally viewed by retailers as a bad thing, variety for consumers is not. When it comes to retail choices, variety makes consumers happy. Shoppers like to have choice: choice in products, choice in quality, and choice in service. Take coffee for example. I have friends who adore Tim Horton's coffee while others only indulge in lattes from Caf Voltaire. One circle of friends will meet at Zoe's Java House while another group prefers Starbucks hands down.
But when enough retail choices are available to satisfy the full range of consumer tastes we move quickly into a zero-sum game. New retailers entering an already diverse market simply replicate preexisting offerings. If nothing truly new is added to the diversity of the market then the situation becomes one not of economic development but of economic displacement. Rather than increasing overall spending and revenue for local businesses, the same pot of money is simply spread a little thinner.
It makes me wonder if there is a natural economic threshold in all of this; a threshold or balance point that moves cities like Prince George from having healthy consumer variety to having negative economic competition. When is enough retail competition actually enough? I'm sure that there is an economic theory that would speak to this with pretty graphs and plenty of data but I have my own ideas.
I believe that if you have something unique to offer consumers, whether it is a reduced price point or a specific product, there should be a place for your business in our city. In the case of Old Navy, a brand that is both instantly recognizable and affordable, known for its fresh casual offerings, many consumers will be drawn to this anchor retailer in College Heights. If out-of-town shoppers make a special trip to town to visit Old Navy because they are familiar with its products, I wouldn't doubt that they'll make the trip worthwhile and extend their stay in Prince George. This will likely lead to increased spending at businesses large and small, both independent and franchised. In the end it is, as they say, about growing the pie rather than fighting over who gets the biggest piece.
Until next week, stay in the black and keep coming back.
