Are Chain Store Brands Authentic Local Businesses?

The city of San Francisco, and now the town of Sausalito, across the Bay, have passed ordinances controlling or outright banning “formula retail” or “multiple chain store” operations in their neighborhoods. The claim is that they are taking away from the truly “authentic local businesses” and creating more duplication of the same cookie-cutter bland chain stores anchoring malls across the vast American suburban plain. You know, the massive Walmarts, the Macaroni Grills and Rite Aid’s we all know and often dislike across the retail landscape in America. People fear that every neighborhood shopping district will become exactly the same and push out any original or local retailer. Recently, Sausalito prohibited the opening of a new Peet’s Coffee, claiming it’s part of a formula retail operation. Does this mean Peet’s Coffee is not authentic and is preventing other coffee stores customers may want from opening in the local business community?

Does this make sense? Are all multiple store brands and all formula retail bad? Are they all fake and inauthentic to local needs? And, do they universally destroy the character of neighborhoods or do they, in some cases, provide a spark that may ignite a renaissance of a dying shopping district or bring a much needed service to an area with limited diversity?

I don’t think all multiple store chains are killers of authenticity. It’s not as simple as local, good, vs. multi-store national, bad. Fundamentally, the real question is, what does a retailer provide that’s not being served to the local consumer? And is it real in how it connects to consumers’ experience?

It’s not about corporate or local it’s about what customers value

Brands that are loved by customers represent what customers seek; they represent a certain desired experience– where the customer ownership of the brand shapes how the store is designed, what it carries and its relationship to the community. This is why even some multiple store chains that are nationwide have incredible loyalty, such as Trader Joe’s or, at the high end, Nordstrom. If a brand, whether a multi-store chain or one store, claims to be exactly what they are then what’s the problem? This authenticity and promise to deliver to customers is not based solely on ownership but on standing behind a brand promise to customers. Peet’s Coffee, originally a local coffee started in Berkeley California over 40 years ago is now publicly traded with 160+ stores and more coming. They view themselves, as do their customers, as a high-end coffee purveyor who’s focuses on superior coffee and tea products with a knowledgeable and helpful staff– this is exactly what customers want. Peet’s is customer-centric, gives great service, provides a vibrant gathering place and excellent products that would otherwise not be in many communities. What more could you want in authenticity?

It’s about what a brand represents to customers not the number of stores

Chain brands can and do serve a purpose. They say to the community “we represent a specific image, perceived value, a certain experience, a certain price point.” When the right store opens – like a Peet’s Coffee or a Trader Joe’s – it says something about the characteristics of the community it serves. In many cases it signals other independent retailers that it’s a good idea to open next door “because you will get some of the high-quality customers our brand generates” and before you know it you have a fascinating mix of stores. Both corporate brands that are authentic in their own right and local brands that draw from their value can promote their uniqueness and character. Both can fit together and build relationships to the same customers.

Good retail brand experiences build on each other

It’s the symbiosis of brands where local stores and big brands serve each other. They “live together”, serving their community with authentic experiences. It’s about what the brand represents and delivers to customers that builds value for a community and creates a fit – not whether they have 200 stores or 2. Brands need to be real, authentic and valued by their customers.

So ultimately all corporate chain store brands are not all bad – many brands that have a national presence DO fit into local neighborhoods. It’s this balance of products and services that the community wants: the big, the small, the local and the corporate chain representing what a community values. The authenticity of these brands is clear to customers who buy from them. This should be the benchmark of authenticity. Cities should not create some arbitrary ordinance that treats a Peet’s and Walmart the same. It’s about community need and what drives the creation of a retail mix that customer’s value.

Ask these simple questions –

1. Does the retail brand stand behind its brand promise?

2. Is store experience an attempt to be what it’s not?

3. Do the goods sold represent the brand quality they claim to be?

4. Are employees knowledgeable and committed to what they sell?

5. Does the retailer offer something unique and valued to that community?