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In 1989, the New York Times ran their now-famous (for us Main Street old-timers) article entitled “When Wal-Mart Comes to Town.” Featuring Wal-Mart’s arrival to Independence, Iowa, this article predicted the doom of small-town downtowns when big business competitors move into commercial districts. Twenty years since the article’s publication, I think we would all agree that—like so many competitors and economic shifts before—Main Streets found their competitive advantage by offering a unique, experiential retail to consumers.
Today, we find ourselves once again looking at a similar cast of competitors, but in a much different way. Main Street retail and restaurant owners find themselves competing with new jobs created in the warehouse and logistics sectors of larger retail agglomerations. Given the robust online sales of large national retailers, these corporations are now offering a growing number of these supply chain occupations ranging from warehouse packers to delivery drivers. Wal-Mart alone has stated that they plan to hire 20,000 new warehouse and fulfillment positions to gear up for the holidays—a move that will only further strain efforts from Main Street retailers and restaurants to retain and hire needed workers in a post-COVID retail environment.
Place professionals and those engaged with small businesses have been hearing and seeing first-hand the challenges of hiring and retaining labor in this early post-vaccine rollout era. The most common reasons typically focus on a lack of childcare and/or concerns of sending students back to schools, a smaller recruiting pool for entry-level positions, the increased quit rates in industries often associated with lower pay, and the rise of the Delta variant and additional health concerns for workers (especially those in the restaurant and retail sectors who experience close proximity to unmasked customers). Additional trends discussed include:
But what is often missed in the discussion is what might be a more systemic shift in the workforce: a dramatic movement of entry-level labor from retail and restaurants to supply chain-related jobs. As just one example, earlier this fall I was in Sterling, Illinois, working with the community on refining their entrepreneurial ecosystem. During our focus group, we learned that the local Wal-Mart distribution center was hiring 130 warehouse workers with a starting wage of $23.00 and a $3,000 signing bonus!
Wal-Mart is not an isolated example. Amazon, while riding the wave of what looks like a permanent 2.5% capture of total retail sales growth over the past 18 months, is hiring at starting wages north of $20.00 and offering signing bonuses ranging from $1,000 to $2,000.
While Main Street businesses may have weathered the COVID storm relative to retail sales shifts to e-commerce, they now are faced with perhaps a much bigger issue: workforce development. For other past challenges—including COVID—we had tools in our toolbox and could quickly develop programs in the form of private-public partnerships to design solutions. However, we are challenged by the fact that workforce is not an issue commonly discussed amongst place professionals. And historically, state and regional job centers, community colleges, and other institutions whose primary mission is workforce development have primarily been focused in the areas of manufacturing and technology-related skills training.
While it’s difficult at this time to fully predict if this is a short-term or systemic shift in the labor force, Main Streets and other resource connectors to small businesses should be more informed and use their creativity as an opportunity to create a new competitive position for what labor is seeking beyond a wage war. A recent Forbes article suggests the top considerations for job seekers and current employees are:
While most small businesses may not be able to match the wage components, a good effort toward stronger wage growth could be coupled with other shifts that create new competitive advantages in working at a Main Street business. Let’s review some potential areas for exploration:
1. Create Safe Workplaces. There is a large segment of the workforce that remains nervous about returning to work that may result in exposure to COVID. Maintaining a safe workplace with masks, hand sanitizer, and cleaning protocols as well as limiting interaction with customers may help to alleviate this concern—even if there is push-back to mask wearing from a customer perspective. I’ve been in a number of stores and restaurants lately where the workforce is wearing masks and consumers are not. This is tied to:
2. The Customer is NOT Always Right. The mix of COVID and politics has created a situation in which many consumers have become downright disrespectful to owners and employees, creating toxic work environments in industries ranging from local schools, airlines, and health care to restaurants and retail. This is further exacerbating the situation whereby employees are leaving these industries to others that offer a safer and more pleasant work experience. While we can’t change peoples’ reactions, we can create a zero-harassment policy that backs up our employees. And as place professionals, we can educate our district consumers about the importance of workers’ and small business owners’ safety in order to keep stores and restaurants open and offering that important Main Street community experience.
3. Sharing Employees. While limited on examples, Foster Coffee in Owosso, Michigan, has led an effort over the past couple of years centered on joint-hiring among several restaurants to provide a highly qualified labor pool, while being able to offer better benefits, flexibility, and pay.
4. Selling Flexibility. As highlighted by COVID and the disproportionate number of women not reentering the workforce, understanding childcare and home-schooling needs while offering flexible work schedules by day can be a value-add to many workers.
5. Examine Health Insurance Benefits for Employees. Over the years, there have been a growing number of group health care plans for small businesses through member and/or trade organizations. A great example comes from the Kentucky Chamber that is working with local chambers to provide competitive cost group health care programs to member businesses.
6. Hire More Teens. Most recently, CVS pharmacies have eliminated the requirement of a high school diploma for entry-level workers. And in Medford, Oregon, the local McDonalds have gone as far as hiring 14- and 15-year-olds. Main Street programs have also been making efforts to get younger folks engaged in their local workforce. Earlier this summer, Livermore Downtown, Inc. in California hosted the Livermore Downtown Job Fair, an event open to folks of all ages but geared towards students. This job fair brought together over 20 local business managers to engage with young folks and gave students a chance to meet possible employers in person, fill out applications on the spot, and learn more about the work permit process. The Main Street program also worked with the local high schools to spread the word.
7. Create Return from Prison Programs. One of the top reasons for recidivism is the lack of job opportunities due to a felony conviction. A recent ABC news report out of California highlights staffing services eyeing inmates released early with good behavior credits, saying it could be a good source of workers to ease the shortage facing restaurants and other service sector businesses. There are 76,000 inmates eligible for early release from state prisons.
8. Which of your Business Activities can you Invest in Further? Reduce is the current go-to for many businesses. Reduce menus, reduce hours, reduce days open, and reduce inventory. This is more of a cost-reduction strategy. I come from the school that long-term business strategy doesn’t work with a pure cost reduction playbook. At some point, investment is necessary to grow. Some of this reduction can be offset by increases to online sales activity as well as enhanced delivery and pick-up services for restaurants.
9. Raise Prices and Offer an Experience. For example, as we saw in the beginning of the summer, consumers had bent-up demand for being out shopping and eating with friends and family. Leverage that demand, combined with limited supply, by raising prices. It is worth noting that demand is not the exclusive driver here. While notable, labor and supply increases are forcing price increases and thus the reality that margin increases may be minimal.
10. Support Launches of Childcare Facilities. As noted earlier, for younger children not in school or too young for the vaccines, childcare and the return to the classroom remain a concern. As place professionals, think of childcare programming as part of your overall recruitment/entrepreneurship support strategy. It may have more return on investment than nearly any other target business on your wish list.
11. What Can You Automate? Using technology or process reductions to decrease employee headcount offers a potential solution. For example, many Wal-Mart stores have now gone to total self-checkout stations, reducing the need for checkout clerks. Some restaurants have moved to more fast-casual service, having consumers order and pick up at the counter while eating in the restaurant.
With COVID, like with so many other economic conditions that have accelerated trend patterns, the pain being felt in the labor market for retail, hospitality, and restaurant sectors is likely not a short-term shift in labor preferences. For place professionals, this represents a new challenge in our role in supporting entrepreneurs and small businesses to be better connected to potential solutions and resources to better position their workforce strategy in a competitive fashion. Consistent with other aspects of downtown and district revitalization, this challenge will also necessitate a strong public-private partnership to address systemic policy issues further exacerbating the labor market for Main Street businesses.
Urban Impact Inc., harnesses strategic investments and collaborative efforts to foster a vibrant and sustainable future, from visionary adaptive reuse ventures to transformative development grants for small businesses and property owners in Birmingham, Alabama's historic 4th Avenue Black Business District.
In the last episode of season two of Main Street Business Insights, tune in as host Matt Wagner breaks down how to understand and synthesize local market data.
Sterling Main Street launched a brick and mortar retail incubator spaces. Executive Director Janna Groharing shares lessons they learned about organization, fundraising, and outreach.
In this episode of Main Street Business Insights, Matt sits down with Glen Ellis, owner of Sycamore Education, Dominion Catalyst Services, and Milady Coffeehouse in Fremont, Nebraska.
In this episode of Main Street Business Insights, Matt sits down with Jaime Courtney, President of Shoalwater Seafood, Derek King, Oyster Farm Director of Shoalwater Seafood, and Shane Thomas, Tribal Council Vice Chair of the Shoalwater Bay Indian Tribe.
Sarah Cole, owner of Abadir’s in Greensboro, Ala., was a 2023 Backing Small Businesses grantee. Abadir’s is a pop-up eatery specializing in seasonal and wholesome baked goods influenced by Egyptian traditions and flavors combined with inspiration from true Southern cuisine.
In this episode of the Main Street Business Insights podcast, Matt sits down with Casey Woods, Executive Director of Emporia Main Street in Emporia, Kansas.
In this episode of Main Street Business Insights, Matt sits down with Nicole Fleetwood and McKinzie Hodges, co-owners of Scratch Made Bakery in Amarillo, Texas.
Tylisya Gober, owner of Barbie Behavior Boutique in Oak Park, Mich., was a 2023 Backing Small Businesses grantee. Barbie Behavior is a women’s clothing boutique specializing in celebrity-inspired attire.
Tiffany Fixter, owner of Brewability in Englewood, Colorado, was a 2023 Backing Small Businesses grantee. Brewability is an inclusive brewery and pizzeria that employs adults with disabilities to brew craft beer.
We’re excited to announce that Main Street America will continue to offer virtual and on-demand small business training in 2024 through an evolved program, the Small Biz Digital Trainers program.
In this episode of Main Street Business Insights, Matt sits down with Tiffany Fixter, owner of Brewability, an inclusive craft brewery and pizzeria that employs adults with disabilities based in Englewood,
In this episode of Main Street Business Insights, Matt sits down with Jennifer Jones, co-owner of Good Times Coal Fired Pizza and Pub in Big Stone Gap, Virginia.
In this episode of Main Street Business Insights, Matt sits down with Bobby Boone, founder and Chief Strategist of &Access. Based in New Orleans, La., &Access creates data-driven and design-centric retail real estate solutions for historically excluded entrepreneurs and under-invested neighborhoods.
New Orleans, Louisiana © Bobby Boone
Tasha Sams, Manager of Education Programs, shares highlights of phase one of the Equitable Entrepreneurial Ecosystems (E3) in Rural Main Streets Program and the biggest takeaways from the workshop experiences.
In this video, learn more about the Williams’ family story, how the business is helping to revive downtown Helena, and the impact they’re having on a national level.
In this episode of Main Street Business Insights, Matt sits down with Janet Hurn, co-founder of Future Ready Consulting in Cincinnati, Ohio.
Cincinnati, Ohio © Janet Hurn
In this episode of Main Street Business Insights, Matt sits down with Derrick Braziel, owner of Pata Roja Taqueria and co-founder of MORTAR, in Cincinnati, Ohio.
Matt Wagner, Ph.D., shares his predictions for the trends impacting small businesses in 2024.
Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends impacting small businesses in 2024.
A podcast featuring some of the best advice we heard from entrepreneurs and community leaders across the country.
Our research team shares the results of the Fall 2023 Small Business Survey.
Learn how local entrepreneurs have leveraged the power of a Main Street community to establish, maintain, and grow their ventures.
Learn how this organization is uplifting business owners and preventing displacement.
Charlotte, NC © Pixabay
Small Business Saturday is an important opportunity to show your support for local businesses. We asked business owners across the network what your support means to them.
Laramie, WY © Laramie Main Street Alliance
Meet the latest recipients of the Backing Small Businesses Program from American Express!
Matt sits down with Jamie and Jerry Baker, co-owners and founders of Trendy Teachers, a teaching boutique and educational toy store located in downtown Rome, Georgia.
This holiday season, rally your communities around the small businesses that help make your downtown thrive.
Small Business Saturday is Nov. 25! Check out these five strategies to celebrate shopping small.
Middlesboro Main Street in Middlesboro, Ky., Puerto Rican Cultural Center in Chicago, Ill., and Sugar Creek Business Association in Charlotte, N.C., have each been awarded $100,000 through The Hartford Small Business Accelerator Grant Program in partnership with Main Street America.
Matt sat down with Anette Soto Landeros, co-owner of Casa Azul Coffee and President and CEO of the Fort Worth Hispanic Chamber of Commerce in Fort Worth, Texas.
Matt Wagner sat down with Danny Reynolds, president and owner of Stephenson's, an independently owned high-end fashion retailer in downtown Elkhart, Indiana.
Matt Wagner sat down with Harvey Williams, Co-Founder and CEO of Delta Dirt Distillery in Helena, Arkansas.
Learn how the Little Santo Domingo neighborhood of Miami is working with the Truist Foundation to strengthen pathways to small business ownership.
© Allapattah CDC
Get ready to support your small business owners and encourage people to shop small this November!
Matt Wagner sat down with the CEO of Keith McDonald Plumbing in Milledgeville, Ga., Lindsay Goodson McDonald.
Learn how the South Carolina Coordinator Program is uplifting small businesses across the state with their dedicated e-commerce platform.
© Main Street South Carolina
Matt Wagner sat down with The Barbershop Conversation podcast team, co-hosts Kenneth Bentley and Davion Hampton along with executive producer Emory Green Jr., in Goldsboro, Florida.
From a cat cafe to a computer repair shop and museum, check out these innovative small businesses from across the Main Street network.
© Historic Valley Junction
This three-week live, online course will prepare local leaders to more effectively work with small business owners in their districts and create an environment that is supportive of entrepreneurship.
© Notice Pictures
Main Street America has a podcast! Tune into Main Street Business Insights to hear from small business leaders across the country.
Meet the 2023 recipients for the Backing Small Businesses grant program, presented by American Express, to provide financial support to small business owners to address critical needs and make a positive impact in their local communities.
In partnership with Grow with Google, our digital coaches will work with businesses in their home states, with a focus on those that operate in small towns and rural communities.
Congratulations to these innovative Shop Small events from across the Main Street network.
Stockbridge, GA © Stockbridge Main Street
Spencer Main Street's Main Street Micro Grants is injecting key funding into their small business ecosystem.
Spencer, IA © Spencer Main Street
Check out a deep dive into the results of our Spring 2023 Small Business Survey, plus insights to help inform the work of local leaders supporting entrepreneurs on Main Street.
Meet the communities who have been chosen to receive entrepreneurial support from Main Street America and the Kauffman Foundation.
We spoke to Debbie Ho, Executive Director at Chinatown Main Street, to learn about the history of women in Boston Chinatown.
Boston, MA © Kyle Klein
From program budgets to big achievements, here's the latest data on the Main Street Movement in 2023.
Franklin, TN © Brandon Jean
Learn how Downtown Inc and York County Economic Alliance are supporting marginalized small business owners in their community
York, PA © Sully Pinos
Meet Backing Small Businesses grantees Kim and Chris Casteel of Anew Life Prosthetics and Orthotics based in Detroit, Michigan.
Short stories about small business owners from Evart, Michigan.
Evart, MI © Storyville
Matt Wagner looks back at his small business predictions for 2022 and shares predictions for 2023.
Learn about the City of Boston’s efforts to invest in economic equity.
Learn how this West Virginia community redirected façade improvement funds to revive local commercial kitchens.
Matt Wagner wrote an article for the OECD blog on how can small business owners can combine digital tools with the power of place to find sustainable success.
Inspired by a session at the 2022 Main Street Now Conference, Main Street Ottumwa has launched the Business Builder Academy, an entrepreneurship course to help aspiring business owners start their ventures.
Ottumwa, IA © Main Street Ottumwa
Whether you are a seasoned American Express Small Business Saturday Neighborhood Champion or an entrepreneur joining this national movement for the first time, we’ve gathered a roundup of resources to support your “shop local” marketing efforts.
We spoke to three women who were awarded Inclusive Backing grants to learn more about their passions, their businesses, and their advice for other women.
Wixom, MI © Carissa Serylo
From social media scavenger hunts to downtown passports, the Main Street network has used countless innovative ways to encourage their communities to Shop Small®—and had plenty of fun doing it.
Oceanside, CA © Road West Photography
Main Street Franklin is leading the way in showing how women business owners can be a powerful force for change in their communities.
#EquityRising, Old Algiers Main Street Corporation's new job training program, seeks to combat rising cost of living by helping residents train for careers that will allow them to stay in their neighborhood.
Learn how the Small Business Census pilot project explored the demographics of the small businesses that call Main Street districts home.
Colville, WA © Colville Together
We spoke to three Black business owners who were awarded Backing Small Businesses grants from Main Street America and American Express to better understand their challenges, successes, and the kinds of support that have helped them the most.
Camden, AR © Kimberly Moore Davis
Main Street leaders and local development practitioners from around the world participated in this exciting webinar hosted by the OECD.
Learn how Silver City MainStreet is using Story Hours to connect local business owners with the community.
Silver City, NM © Silver City MainStreet
Main Street Skowhegan opened their new Skowhegan Center for Entrepreneurship, a downtown space for co-working, meeting, entrepreneurial support, trainings, and education.
Skowhegan, ME © Kristina Cannon
Main Street America is proud to support the Revitalizing Small and Local Businesses Act
Main Street America's research team shares the results of the 2022 Small Business Survey.
© JENNIFER E. WOLF
Learn about Show of Hands, an entrepreneurial program in multiple Main Street communities.
Wheeling, WV © Wheeling Heritage
Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends affecting small businesses in 2022.
Is your Main Street ready for the biggest small business shopping day of the year?
Main Street Charles City organizes their annual 'WonderFall' event, a business decorating contest designed to have some fun with the autumnal season as well as provide a reminder of the importance of curb appeal in attracting the public’s attention.
Charles City, IA © Mark Wicks
Leverage NC, a partnership between North Carolina Main Street and the North Carolina League of Municipalities, hosted a four-part webinar series titled Better Community Planning & Economic Development led by Ed McMahon, Chair Emeritus of Main Street America and a leading national authority on land use policy and economic development.
Main Street Arkansas has brewed a new engaging way for tourists and residents alike to explore local Arkansas commercial districts: the Main Street Arkansas Coffee Trail.
Little Rock, AR © Main Street Arkansas
We spoke with two Black entrepreneurs in UrbanMain commercial districts: L. May Creations in the Austin neighborhood of Chicago and The Four Way in south Memphis, Tennessee.
Memphis, TN © Four Way
Heart of Biddeford shares the strategies they developed to support Black-owned businesses in their community.
Biddeford, ME © Heart of Biddeford
We heard from organizations across the nation about the incredible impact their markets have had on community engagement, entrepreneur and small business support, and keeping their district vibrant.
The global pandemic gave us all a glimpse of a further dispersed future – a time when you don’t sit in a classroom at school, watch movies in a theater, or even go to the grocery store. Where do Main Streets fit in that model?
Appealing to mobility-challenged shoppers yields benefits beyond the store.
Being the only person in the know can be fun, exhilarating even. Except when you are the one person out of 600+ in a room and you know bad news is coming.
Fritz the dog has made his way into the hearts of the residents of LaBelle, Florida, and helped our Main Street Community find a way to make what we do more noticeable.
Altavista On Track, the local Main Street organization, is working to cultivate and sustain local entrepreneurs with an educational business launch competition, Pop-Up Altavista 2.0.
In Winchester, Virginia, one woman’s vision and commitment to downtown’s revitalization created an innovative community space for the Creative Class.
A business retention and expansion plan, properly implemented, not only helps keep businesses open but possibly even helps them expand.
The first rule of conducting business is “make it simple.” The easier it is to pay for merchandise, get entertainment or obtain a service, the more likely it is that people will take advantage of those options.
Main Street communities across the country are no stranger to seeking creative strategies to solve their most nagging issues – vacant buildings, marketing downtown, bolstering retail to name a few.
To understand the role that immigrant business owners play in Boston’s small business ecosystem, you need only to walk through any Boston Main Streets district.
Façade appearance is a critical aspect of the overall aesthetic appeal and unique character of downtown.
A lot of signs are necessary to make a downtown work well, but not every community knows what a good sign system looks like, or how instrumental it can be to the creation of a successful downtown.
Main Street Iowa, a program of the Iowa Economic Development Authority’s Iowa Downtown Resource Center, created a one-of-a-kind three-year program to provide help for performance venues located in Main Street districts.
