SM BLVD Since 1914, Busy Bee Hardware has been helping Santa Monicans fix leaks, repair roofs and build tree houses in backyards. It’s the epitome of the classic neighborhood hardware store.And just as residents have relied on them to help them keep their homes and apartments in shape,Busy Bee has relied on its customers to help stay in business.
But with rising rents, a sluggish economy and competition from corporate chains such as Home Depot and Lowe’s Hardware, Busy Bee, like many other local, family-owned businesses, are a little nervous about what the future may hold.
“Our customer base is helping us to stay in business,” said Veronica Portillo, a manager at the hardware store for the last nine years. “Without them, we’d probably be in a deep hole. It’s hard to stay competitive because Home Depot is much bigger and can give better deals. We are well established and have good connections with the community.
“They want to keep us here,” Portillo added. “If they start going (to Home Depot or other major chains), we’d disappear.”
Santa Monica, like many other cities across the country, was once home to many mom and pop businesses that performed tune-ups, cut hair, put cuffs in new pants, did taxes and sold shoes.
Over the years, some of these stores watched as customers flocked to chain stores that could offer lower prices and wider selections. Soon, places like Third Street became littered with corporate chains, eroding what many feel is the charm of old Santa Monica.
Today, family-run businesses are still in operation, but it has become more difficult to turn a profit and it looks as if times will get tougher as the dollar decreases in value, utility costs and health insurance premiums continue to rise and consumers look for value instead of quality.
“At this point, a lot of shops are just making enough to eke by,” said Louis Galper, sales manager at McCabe’s guitar shop, which is celebrating its 50th anniversary in Santa Monica.“It hasn’t been as bad as this … we’re competing with the Internet and the big boys down the street … The walls [of the shop] look busy, but there’s less stuff than normally.”
CITY HALL: FRIEND OR FOE?
Competition from corporate chains is just one challenge smaller, family-owned businesses must face. Another is overcoming the ill effects of certain city rules and regulations that make it difficult to attract and retain customers and make decent profits.
Business owners voiced their frustrations with the ordinance limiting the size and shape of signs and banners, which hurts advertising and street presence. Others complained about the smoking restrictions and a ban on using Styrofoam, forcing restaurants to purchase slightly more expensive recyclable products.
Factor in traffic congestion and the lack of parking, as well as business taxes — which are some of the highest in Los Angeles County — and it becomes clear that small businesses face an uphill struggle to remain open. Last year Santa Monica was named the costliest city to do business in the county by
Originally published in the Santa Monica Daily Press print edition on February 9, 2008. Read the original PDF.