Quiz: ‘Retail leakage’ is which of the following:
A. A store with a hole in its bottom
B. A shop that is incontinent
C. The name of a rock band, dude
D. The loss of local retail sales that occurs when people shop in an area other than the one in which they live.
If you picked A,B or C, you have a slightly off-center sense of humor and would be fun to chat with over a beer. But, alas, you’re wrong! In fact, D is the correct answer.
Retail leakage is term tossed around by economists. It’s something that occurs when we spend money to buy goods outside the community. Most of us prefer to buy locally, but sometimes we forget that it’s beneficial to us or we simply can’t find what we want.
My purpose is to offer a gentle reminder to shop in the greater Fort Collins Area first. It might be fun to bomb down the interstate to Denver or Flat Irons Mall for a day of shopping and dining or to buy online, but here are some reasons to reconsider.
First, if you live here, you have a rooting interest in having a strong, well-staffed police department, properly equipped firefighters and good streets. The money to pay for those things and dozens of other city government services comes primarily from sales tax. When you spend your money here, some of the taxes go back to services that benefit you directly.
Second, the person across the counter is one of your neighbors. They might own the place or just work there. But either way, they’re earning a living by serving you and the community. When their store is successful and they are gainfully employed, the chances are pretty good that the public is not having to support them. In fact, they may be in a position to donate time and / or money to local causes.
Finally, you can usually find what you want right here. And, my experience has been, that when you can’t, merchants are very willing to help you find and order what you need.
With the holidays on the near horizon, think about shopping locally. You can get what you want while helping yourself and your neighbor. Let’s put an end to that unsightly leakage.
