Recently, Runner’s World Online posted an article about the corporate consolidation of running retailers and how independent stores, like Naperville Running Company, are trying to compete with them, in addition to the ever-present threat of online outlets. A representative of one of those corporations, Running Specialty Group (RSG), says their stores offer the “feel of an independent running store” but with the buying power to find shoes customers want. He further said that they try to offer the same local races and groups that independent local stores offer, as well as supporting smaller local suppliers. So, it’s all the same, right?
Wrong, says NRC owner Kris Hartner, who is also quoted in the article. Hartner says that the first community folks to feel the pinch of the new corporate ownership are the employees.
“They essentially gut the staff,” Hartner said. “They have even publicly stated that they would rather hire a young, inexperienced store manager and pay them a small salary, rather than keep an experienced store manager, making twice that. Their parent company pays their hourly employees pennies above minimum wage, and other benefits such as medical, 401k, 401k matching, profit sharing, vacation, etc. are very often lacking. I think it's pretty easy to see what this does for the community.”
Kris has understood for a long time that motivated, knowledgeable and caring employees are essential to keeping the store successful, which is good for the employees, customers and community.
“We respect our employees and offer career development and pride in their job, and the ability to make a living wage in our community. And that's just the tip of the iceberg.”
Kris is referring to widely-quoted statistics showing that roughly 68 cents of every dollar spent in a local independent business is returned to the community, as compared to 43 cents for larger chains outlets; and for every dollar spent in online, $0 are returned to the community.
“We don't rely on telling our customers that statistic to get business, we want them to shop with us because we're good at what we do, but it's certainly a nice bonus to have more of your spending going back to the local community,” he said. “We don't have to answer to Wall Street, so we can make decisions based on what's best for our store family and community, rather than a laser focus on the bottom line for the next earnings call.”
Kris says it’s about being a productive and caring participant in the community in which you live, work and raise your family. Corporate-owned stores usually have to go through a chain of command when it comes to local donations and involvement. Owners and employees of independent stores are free to genuinely and wholeheartedly embrace the community through their businesses.
“From sponsoring of races, to being on community boards, to providing financial help to local not for profit organizations, the chains and online businesses don't even scratch the surface of what we do there,” Kris said. “I've never been more proud to be a locally owned and operated business. And I'm working on ways to make sure NRC stays that way, even when I'm no longer in the business. We’ve had offers, really nice ones, from other companies that wanted to buy us, but that wasn't why I got into this. And now that I've seen what has happened to stores who have been purchased or sold out, there's no doubt that we're doing the right thing. There are challenges in being independent and not having a bigger voice, but that's why we formed the Independent Running Retailers Association many years ago and it's also why I work very closely with many other independent retailers. We are much stronger together.”
Read the Runners World Online article