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Buy Local, Eat Local . . . Invest Local 35
for example, is currently fi ghting a suit brought by indigenous
inhabitants of the Oriente, a patch of pristine Ecuadorian rain
forest that Texaco, now owned by Chevron, systematically polluted
over decades of oil exploration. How’s that for a good neighbor?)
Other companies are taking more concrete steps. Some of the
biggest Internet names are making local plays. Local content is a
major pillar of AOL’s growth strategy, building on its acquisition of
local content sites Patch and Going. And mighty Google sent shockwaves
through the online world with its $6 billion bid for Groupon,
a two- year- old startup that offers targeted coupons and aims, in the
words of its founder, to “transform the way local business is done.” 1
Retailers have gotten the local religion, too. After gobbling up
and homogenizing many of the country’s once- proud regional
department stores, Macy’s has decided to inject some local fl avor into
its stores with indigenous brands and products tailored to local tastes.
That might mean Frango chocolates in Chicago or white church
outfi ts in Atlanta. Macy’s believes “going local” is the key to its future
growth. 2 And Overstock.com last year introduced a new online Main
Street Store that will carry products from small businesses.
Even the biggest retailer of them all, Walmart, has jumped
on the bandwagon. In late 2010, Walmart, the world’s largest grocer,
announced it would stock its shelves with more locally grown
products from small and midsized farmers. The company plans
to double sales of locally sourced produce in the United States to
9 percent by 2015. (Walmart defi nes “local” as products produced
in the state where the store is located.) Even a small increase
could have a big impact, considering that food sales make up
more than half of Walmart’s $405 billion in annual revenue.
The goals are higher in other countries, such as Canada, where
Walmart’s grocery business is brand new. Overall, the retailer
hopes to sell $1 billion worth of locally produced food by 2015.
In announcing the program, Walmart portrayed it as a way
to help struggling small- scale farmers, build stronger local economies,
reduce the company’s food miles, and provide customers
with fresher food. That may be so. But there’s also a clear- eyed economic
rationale. Sourcing closer to stores saves Walmart money.
And, as the company’s web site says: “Buying locally grown produce