"It's a testament to Michael [Ziegenhagen] and the people at Playmatters that they've been established in the market as long as they have," said Sid Good, president of Good Marketing Inc.
CLEVELAND, Ohio -- Playmatters Toys founder Michael Ziegenhagen's decision to close his Shaker Square store this Saturday, March 26, doesn't mark the end for independently-owned small businesses, "buy local" advocates say.
Jennifer Lehner, founder of the Shaker Heights Flash Cashers cash mob, said of Playmatters: "When we cash mobbed them a couple of years ago, the community came out in droves to support them. The outpouring from the community was extraordinary. Playmatters has been a treasured member of the Shaker Heights community.
"They have been my go-to place for birthday gifts," She said. "Not just because the merchandise is great, but [also because] it is one of very few places left these days that has experts who know their products and can deliver truly personalized service, including free gift-wrapping."
Playmatters, which once had five local toy stores, is still open at 30829 Pinetree Road in Pepper Pike and at 6025 Kruse Drive in Uptown Solon.
Stacy Mitchell, co-director of the nonprofit Institute for Local Self-Reliance in Minneapolis, and author of Big-Box Swindle, said that while losing Playmatters is a major blow, "it's hard to characterize what's happening with a broad brushstroke, because there are places where independent businesses are seeing renewed success."
"We have 400 more independent bookstores than we had five years go, the growth of specialty foods stores and small neighborhood grocery stores, these are all rebounding in remarkable numbers," she said.
"There's this growing public interest in supporting locally owned businesses, at least in some places," Mitchell said. "There's more public awareness, and we are seeing results from the 'local first' movement."
Sid Good, president of Good Marketing Inc., a Cleveland consultancy that specializes in toys and consumer products, said the competition among toy retailers has never been more intense.
"It's a testament to Michael and the people at Playmatters that they've been established in the market as long as they have," he said. "Especially for the Playmatters stores that remain in place, the dynamics of buying toys and how people buy toys has been changing for many years now."
"For one thing, kids don't wander into toy stores by themselves anymore. Kids are graduating out of toys at much younger ages," into video games, consumer electronics and mobile devices.
Big box stores, mass market retailers, and online sites might offer a broader selection of toys, but Playmatters' customers like going into specialty toy stores, talking to the people there and getting their recommendations of what to buy, he said. Playmatters' staff also giftwraps all its presents for free.
"They still offer that -- and it's terrific," Good said. "There's still a place for the added value that quality toy stores provide, for the services they provide like free giftwrap, as well as the experience of being able to touch and feel the actual product that you're purchasing."
At the same time, Mitchell said: "there's this larger context of significant challenges that come from Amazon, rising rent, and not being able to get loans. We recently surveyed 3,200 independent businesses nationally, and small businesses expressed significant anxiety about the challenges they face."
"The rise of Amazon ranked as the top challenge of independent retailers; over 70 percent mentioned it s a significant challenge, whereas only 40 percent said chain retailers," Mitchell said.
Amazon received more than $431 million in local tax incentives and other public assistance for its warehouses between 2012 and 2014, according to public records obtained by the ILSR. Amazon is not required to collect online sales tax in early 20 states, she said.
"Locally owned businesses contribute to economic growth, increase property values, and contribute to the life of the community more than people realize. Online retailers have no local presence. That's a serious public policy issue."
"We really have to shift the 'buy local' movement from being about where you shop and turn it into a movement about city policies, so we don't lose more independent stores like this," Mitchell said.
"Now that we are losing lost this gem, it's a reminder to all of us to support the unique local stores that still remain," Lehner said. "Consider driving around the corner to Loganberry Books on Larchmere for your next birthday present. They have an amazing inventory of goodies for people of all ages."