Plea to spend within town limits

Ellerslie Town centre manager Christine Foley wants residents to buy locally. Photo / Brett Phibbs

An Ellerslie business group is trying to create a micro-economy by encouraging residents to spend in their suburb.

The Ellerslie Business Association began a three-month Buy Local campaign on March 9, offering prizes and vouchers for residents who supported local businesses.

Town centre manager Christine Foley said the campaign aimed to change the spending habits of its residents. She said even a minimal change would benefit Ellerslie businesses significantly.

"We are not trying to increase the average spend of residents, that is less important. What we want is for them to make a conscious effort to make one in 10 of their purchases locally.

"We need people to find out what products or services they can buy here rather than drive past on their way to spend elsewhere."

She said the programme aimed to achieve a 10 per cent increase in local sales in the next two to three years.

Ms Foley had plans for a Buy Local programme before the economic downturn.

The catalyst for the campaign was a report on Eftpos transactions in 2005 which showed only 4 per cent of residents' spending was in the Ellerslie area. The 96 per cent which residents spent outside the area was valued at almost $10 million.

At that time there was a -$7.6 million regional trade balance for Ellerslie, meaning more money was leaving the suburb as residents spent elsewhere, than entering the area from spending by visitors.

She said the research reflected a socio-economic and geographic problem. Ellerslie residents were very mobile, and had access by motorway, rail and arterial roads to large shopping centres.

She said Ellerslie suffered from not having a major supermarket, but that the local businesses could offer an alternative to the large centres by promoting their community charm.

"Residents may shop elsewhere for big ticket items and big brands. That is not what Ellerslie is about. We are about a village atmosphere with friendly service. This is no typical town - there is nothing else like it."

Local businesswoman Jan Gemmell, who runs Gemmell's at Ellerslie, a shoe retailer and repair shop, said her staff went to extra lengths to know customers and had developed a regular local clientele.

However, she had already seen a marked increase in the number of locals in her store since the Buy Local programme began.

"As part of Buy Local we keep record books of who is spending in our shops. I have already filled an entire book. I know of other businesses who have filled two or three.

"With so much doom and gloom about the economy, people like to come into a place where the attitude is constantly positive."

Ms Foley said the idea for the programme stemmed from an initiative in the Rangitikei area 10 years ago, where councils encouraged local business by offering weekly prize draws over six weeks.

But she believed that the long-term implementation of a Buy Local strategy was the first of its kind.

"We don't have the money for advertising like Newmarket or Remuera do.

So what we have come up with is a broad programme which we hope will just slightly change people's habits.

"We are sowing the idea of purchasing a couple of things locally."

ELLERSLIE
* 12,000+ employed by local businesses
* 4 per cent of Ellerslie residents' spending is within the suburb
* $10 million lost to businesses outside Ellerslie