Local First helps Grand Rapids independents

Twelve members of Michigan Retailers Association are also members of an innovative organization in the Grand Rapids area known as Local First West Michigan. This month’s member profile will look at both the Local First organization and at some of the MRA members who belong to it.

A new kind of business organization is taking root in communities around the nation, focusing on raising awareness of the economic and social benefits of shopping with locally owned businesses. These groups foster business-to-business networking as well as consumer education and promotion of locally owned businesses.

“Through business and consumer education, Local First helps to create an educated population who understands that they have a choice when spending their dollars,” reads the Local First West Michigan website (www.localfirst.com). “Our efforts contribute to an economically revitalized downtown, increasing the number of sustainable businesses within West Michigan and retaining the unique character of our neighborhoods.”

Local First West Michigan is the older of Michigan’s two groups, having grown from 15 to more than 250 members in only four years.

Washtenaw County has a fast-growing organization as well, called “Think Local First” (www.thinklocalfirst.net). Planning for a similar group in the Lansing area is underway.

These groups are affiliated with a national organization known as the Business Alliance for Local Living Economies (BALLE), which now has 48 affiliates in 25 states.

“Local First is a much more recognizable name than BALLE, especially with consumers,” explained Elissa Sangalli, executive director of the Local First and its only paid staff.

At first glance, the organization may seem like just another group promoting local businesses, such as a DDA, chamber of commerce or business improvement district. One difference is its strict definition of “local.”

“Businesses in the Local First network must be locally owned, privately held and headquartered in West Michigan,” explained Sangalli.

“Such businesses make decisions locally, not at a corporate headquarters located elsewhere. They tend to use local services—marketing, signage, printing, accounting, legal and other business services—and thus boost the local economy,” she added. Employment decisions, too, are under local control, and more of the payroll recirculates in the local economy.

A 2004 study showed that for every $100 spent at a locally owned business, $68 remains in the local economy, compared to only $43 of every $100 spent at a non-locally owned business.

Another distinctive part of its mission is its focus on the so-called “triple bottom line”: economic viability, social responsibility and environmental sustainability. The concept of the triple bottom line has gained traction in business circles in the past five to 10 years, as the value of corporate responsibility and sustainability gains a higher profile with the public.

The connections between local businesses and social responsibility are numerous but not well understood by consumers. Dan Hurwitz, an advisor to Local First and owner of Daniel’s Collections, an upscale men’s and women’s clothier in Grand Rapids, points out that local business owners like himself often serve as board members of local non-profits and charitable organizations. Their ties to the community tend to be strong and long-term.

A practical reason businesses join, said Sangalli, is to be included in the group’s Business Directory, a handy booklet available at member stores, restaurants and other places where free publications are found. Organized by shopping and services categories, the directory also explains the organization’s mission. A map groups the member businesses by geographical shopping districts as well.

Hurwitz believes the biggest challenge for a group like Local First, especially in economically struggling Michigan, is consumer education about the economic impact of spending money with local businesses. At the same time, he maintains that shoppers won’t simply “buy local” if the business is not also excellent in terms of products and service.

Along with monthly board meetings, the group hosts events where members can meet to socialize, learn, network and work together on marketing and promotional efforts. At their February meeting, the group met to discuss ideas for a gift-card program. Other meetings have featured speakers on sustainable business.

MRA members who have joined Local First West Michigan include:

Bluedoor Antiques
Joel Carrier owns Bluedoor Antiques in the East Hills neighborhood of Grand Rapids and is active in several local business organizations. Carrier sees Local First as a unique addition to the other groups, which currently get more of his attention “because they need it more.”

“Local First excels at getting out the larger message about the value of buying locally,” said Carrier.

Pepper Moon Gallery
Michael Mabin, who co-owns Pepper Moon Gallery with his wife, Yvonne, was one of the early adopters of Local First, joining as soon as he was asked and serving on its board last year. The gallery is a vibrant combination of unusual gifts and art from local and international artists—specializing in South and Central American art but offering artists from Siberia to Mozambique.

“I love the grassroots networking, the references from one business to another. It’s all about relationships—both with customers and with other businesses.”

Redux Books
Clarence Hogeterp, owner of Redux Books in Eastown, says you don’t get more local or sustainable than a used bookstore. Owning a bookstore has been a lifelong dream and a marriage saver, he jokes. His wife wouldn’t have tolerated any more used books in their home.

He, too, was an early member of Local First and fully supports its mission.

Frenz Coffee House
Richard Zeck opened a second location of his coffee house in Rockford six months ago. His first location, in Northeast Grand Rapids, opened just two years ago, and he credits Local First, especially its last director, Ellie Frey, with supporting the business as it grew.

“It’s as if there’s an underground economy, made up of people who realize that it matters where you spend your money,” Zeck said. “For many people, once they know, they care.”

Other members of both Local First and MRA:
• Clothing Matters, an apparel store that sells only responsibly manufactured products.
• Design Signs, which supplies signs, vehicle lettering, banners, trade show graphics and logo design to businesses.
• Gazelle Sports, with locations in Grand Rapids, Kalamazoo and Holland, named 2005 Michigan Retailer of the Year.
• G.B. Russo & Son International Grocer, a centennial retailer whose president, John Russo, is on the Local First board.
• Kleiman’s, a 104-year-old menswear store near downtown Grand Rapids.
• Marie Catrib’s of Grand Rapids, a restaurant named “Best New Business” in 2006 by the Grand Rapids Neighborhood Business Specialists Program.
• Meijer, Inc., the Walker-based family-owned “supercenter” chain with stores in five states. Despite being a regional chain, Meijer fits the membership criteria of Local First.