All signs point to local businesses
The Malibu Chamber of Commerce is enthusiastic about leading a “Support Local Business Campaign” for the city of Malibu. The Chamber membership is comprised of both local and independently owned businesses and chain stores and the Chamber aspires to promote a healthy and diverse local economy that will benefit both Malibu businesses and its residents. Although a great majority of retail businesses in Malibu (and members of the Chamber) are not chains, the Chamber believes that the interests of both types of business are aligned and both should be supported. However, promoting small, local, independently owned and operated business has always been a priority of the Chamber.
The Chamber is prepared to take the lead on a “Buy Local Campaign”, increasing awareness of locally available products and services and encouraging residents to shop in the Malibu community. The Chamber has already received commitments from local commercial property owners to participate in this effort, including the placement of local ads promoting their local and non-chain tenants. The Chamber also proposes that there be an effort in conjunction with the “Support Local Business Campaign” to promote local hiring. The Chamber will encourage local commercial property owners to favor the selection of local suppliers when that option is viable. We will also recommend that property owners and businesses use local contractors and other services when available on a competitive basis.
The Chamber is strongly opposed to a restrictive Formula Retail ordinance and/or a Conditional Use Permit (CUP) process. We believe that these measures are anti-business and would be damaging to both chains and small independent businesses. It is the belief of the Chamber that discriminatory ordinances and restrictions lead to a diminished retail environment, limiting choices for the residents and encouraging “boutique” businesses. Tourist-based local economies often use restrictions in order to maintain an environment that attracts tourists but we do not believe that this is appropriate or desirable for Malibu.
Restrictive controls would lead to increased retail vacancies and a financially weakened local economy. This would result in reduced sales tax revenues to the City. The addition of a CUP process in Malibu would add expense (a CUP can take many months to get approved and cost thousands of dollars, another barrier for small business), and almost by definition increase vacancy rates since it takes longer for a property owner to replace tenants. Since the average tenant base must cover a property owner’s expenses, tenant costs could potentially rise, harming those tenants with low operating margins, more likely than not to be the small local businesses.
While the Chamber is committed to supporting non-chain independent businesses it is important to note that oftentimes the best quality and lowest prices are associated with chains. The reason they are chains is because of their success and acceptance by the general public. Also, small independent stores benefit greatly from the traffic generated by chains. Residents visit the commercial areas of Malibu seeking a mix of shopping options. If chains did not exist in Malibu it is our belief that residents would do even more of their shopping outside of the city.
The Chamber has recently completed a survey of local business to assess the competitive environment. It has determined that along the Pacific Coast Highway in Malibu (a span of roughly 27 miles), approximately 85% of the storefront businesses are non-chains. This percentage is even higher if banks and gas stations are excluded. In the Civic Center of Malibu surrounding Cross Creek, there are a total of six shopping centers totaling about 140 stores in approximately 275,000 square feet. This retail community includes abundant free parking, a public park and picnic areas, a children’s playground, security, all surrounded by beautifully landscaped public areas and world-class sculpture. More than 62% of these stores are local independent non-chain businesses. Based upon these data the Chamber concludes that the current tenant mix in the city is appropriate and already favors local businesses.
The Malibu Chamber of Commerce looks forward to working with the City, its residents, commercial property owners and the local retail and service businesses to create a program that increases awareness of the many wonderful shopping opportunities and services that are available locally and to encourage their support.