In Praise of Chain Stores

Chains do more than bargain down prices from suppliers or divide fixed costs across a lot of units. They rapidly spread economic discovery—the scarce and costly knowledge of what retail concepts and operational innovations actually work. That knowledge can be gained only through the expensive and time-consuming process of trial and error. Expecting each town to independently invent every new business is a prescription for real monotony, at least for the locals. Chains make a large range of choices available in more places. They increase local variety, even as they reduce the differences from place to place. People who mostly stay put get to have experiences once available only to frequent travelers, and this loss of exclusivity is one reason why frequent travelers are the ones who complain. When Borders was a unique Ann Arbor institution, people in places like Chandler—or, for that matter, Philadelphia and Los Angeles—didn’t have much in the way of bookstores. Back in 1986, when California Pizza Kitchen was an innovative local restaurant about to open its second location, food writers at the L.A. Daily News declared it “the kind of place every neighborhood should have.” So what’s wrong if the country has 158 neighborhood CPKs instead of one or two?

The process of multiplication is particularly important for fast-growing towns like Chandler, where rollouts of established stores allow retail variety to expand as fast as the growing population can support new businesses. I heard the same refrain in Chandler that I’ve heard in similar boomburgs elsewhere, and for similar reasons. “It’s got all the advantages of a small town, in terms of being friendly, but it’s got all the things of a big town,” says Scott Stephens, who moved from Manhattan Beach, California, in 1998 to work for Motorola. Chains let people in a city of 250,000 enjoy retail amenities once available only in a huge metropolitan center. At the same time, familiar establishments make it easier for people to make a home in a new place. When Nissan recently moved its headquarters from Southern California to Tennessee, an unusually high percentage of its Los Angeles–area employees accepted the transfer. “The fact that Starbucks are everywhere helps make moving a lot easier these days,” a rueful Greg Whitney, vice president of business development for the Los Angeles County Economic Development Corporation, told the Los Angeles Times reporter John O’Dell. Orth Hedrick, a Nissan product manager, decided he could stay with the job he loved when he turned off the interstate near Nashville and realized, “You could really be Anywhere, U.S.A. There’s a great big regional shopping mall, and most of the stores and restaurants are the same ones we see in California. Yet a few miles away you’re in downtown, and there’s lots of local color, too.”

Contrary to the rhetoric of bored cosmopolites, most cities don’t exist primarily to please tourists. The children toddling through the Chandler mall hugging their soft Build-A-Bear animals are no less delighted because kids can also build a bear in Memphis or St. Louis. For them, this isn’t tourism; it’s life—the experiences that create the memories from which the meaning of a place arises over time. Among Chandler’s most charming sights are the business-casual dads joining their wives and kids for lunch in the mall food court. The food isn’t the point, let alone whether it’s from Subway or Dairy Queen. The restaurants merely provide the props and setting for the family time. When those kids grow up, they’ll remember the food court as happily as an older generation recalls the diners and motels of Route 66—not because of the businesses’ innate appeal but because of the memories they evoke.

The contempt for chains represents a brand-obsessed view of place, as if store names were all that mattered to a city’s character. For many critics, the name on the store really is all that matters. The planning consultant Robert Gibbs works with cities that want to revive their downtowns, and he also helps developers find space for retailers. To his frustration, he finds that many cities actually turn away national chains, preferring a moribund downtown that seems authentically local. But, he says, the same local activists who oppose chains “want specialty retail that sells exactly what the chains sell—the same price, the same fit, the same qualities, the same sizes, the same brands, even.” You can show people pictures of a Pottery Barn with nothing but the name changed, he says, and they’ll love the store. So downtown stores stay empty, or sell low-value tourist items like candles and kites, while the chains open on the edge of town. In the name of urbanism, officials and activists in cities like Ann Arbor and Fort Collins, Colorado, are driving business to the suburbs. “If people like shopping at the Banana Republic or the Gap, if that’s your market—or Payless Shoes—why not?” says an exasperated Gibbs. “Why not sell the goods and services people want?”