Need a good reason to buy from a small business and not a big one? You’ve come to the right entry.
I prefer to err on the side of being ethical, even though it certainly is not making me rich. Not all large retailers are diabolical monstrosities, but a fair few of them play some extremely unsavory games in the name of the almighty buck.
Here are some of the more common tricks:
- Treating employees like garbage. To give just one example, a dear friend of mine took a job at a big-box store (due to not being able to find anything else). The store promised him certain hours, then revoked their promise and routinely gave him 12-hour shifts on back-to-back days (after each overlong shift, he was too tired to get home safely, and wound up sleeping inside the store – as did several co-workers). When he asked for the overtime pay he was owed, the company fired him. (For the record, he was a good employee. He’s one of those guys everyone likes because they’re just so damn nice.) Oh, have I mentioned that nearly one third of all Americans living in poverty work in retail? (Source: Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell.) One would think that companies which give their executives robber-baron paychecks could raise their lower-level employees’ wages enough that they don’t have to scrape by, but most fail to do so.
- Charge backs. Charge backs, which are fees charged to suppliers for not meeting a store’s exact requirements, are sometimes assessed unfairly, and they are expensive enough to create a potential financial problem for smaller suppliers. (Note to would-be designers: be EXTREMELY CAREFUL about following stores’ requirements to the letter or you could wind up paying up to $250 per box in charge back fees.)
- Markdown money. Some stores require guaranteed sell-through, meaning a certain amount of product has to sell at full price, and if it doesn’t, the store charges the supplier ‘markdown money’ to cover the loss when unsold stock goes on sale. The bigger the retailer (or the greater their influence), the easier it is for them to make this demand and get it – and the supplier eats the cost, even though they certainly can’t predict some of the things that affect sales (i.e. recession, unusual weather patterns, an obnoxious D-lister wearing the label, etc.). This is why some department stores manage to make money selling $400 shoes for $75 in big sales. Smaller retailers are less likely to engage in this practice, as they lack the buying power necessary to do so. I disapprove of it myself, even though it means I have to eat the cost of any buying goofs.
- Demanding discounts. Large retailers buy in bulk, and generally demand lower pricing in exchange for doing so. This eats into the suppliers’ profit margin (which leads some of them to push the manufacturers for lower rates…and a company’s “official” factory may secretly use inferior materials or outsource some of the work to a cheap sweatshop as a result – I couldn’t make this up if I tried), and is unfair to smaller stores. (And now you know why big-box stores sell brand-name cleaning products for less than the mom-and-pop store and make far more money doing so.)
- Wrongfully canceling or returning orders. Some stores will cancel or refuse a shipment for any reason, or for no reason at all. I have returned shipments myself, but only if the goods are of unacceptable quality or if they are genuinely flawed (i.e. shoes with glue stains that won’t come out, bags with faulty zippers, etc.). Some stores, however, will return or cancel orders for reasons like someone else knocking off the item. According to Mary Gehlhar in her book The Fashion Designer Survival Guide: “The tragedy of September 11, 2001, resulted in many stores refusing shipments or returning them for absurd reasons, such as in the case of one designer who had T-shirts returned because of their skyscraper motif…Another designer had a dress returned to the store by a customer who wore it once. Afterwards, the designer found yellow sweat marks under the armpits. The store returned the entire shipment of dresses to the designer, even though only one dress was affected and was probably caused by the customer’s deodorant.” (The store should have refused to take back the ruined dress in the first place, but that’s neither here nor there.)
- Destroying or throwing away unsold stock. I can’t name names here without the risk of a lawsuit, but more than one former retail employee has told me stories of chain stores throwing out perfectly usable items they couldn’t sell at any price, or of destroying unsold stock so it could be written off as “damaged.” (My friend who worked at the big-box store corroborated this story.) I absolutely despise waste, so you can imagine how mad these stories always make me. (Side note: once, I had a number of shoes from one shipment that had small defects – mostly scratches. They were wearable, but not sellable. The supplier gave me a credit for all of the imperfect shoes, but told me I didn’t have to return them. Instead, I allowed my then-assistant, who owned only a few pairs of shoes, to take her pick. The rest went to a local women’s shelter.)
When in doubt, buy from a small business, or ask about a larger store’s policies. If they decline to answer, it may not be a good sign. (Granted, they might just lie to your face, so consider asking around and seeing if a large group of disgruntled former employees steps forward.)