Saturdays are meant to be the busiest days for many downtown San Marcos businesses, but several shops have been negatively impacted due to markets on The Square switching from monthly to weekly.
From thrift stores to apothecaries, small businesses find themselves competing with the Saturday markets, which include the Vanilla Bean Market, Art Squared Market and seasonal festivals such as the Tamale Fest and Merry On The Squarey.
One negatively impacted local business is a vintage clothing store named Vagabond. David Marrs has owned his business for over 20 years.
“It kills [my sales],” Marrs said. “They’re not bringing anything to me; the city says by having them there, it’s helping the economy around here.”
Business owners are told by those who organize the markets they may be good for the economy and bring customers into the downtown area to trickle off and visit local businesses, but that’s not what business owners are seeing.
“Why are you hurting businesses that are here contributing to the economy every day?” Marrs said. “You may get a little sugar rush, but [the markets] are crippling the businesses that are here every day, and people like me who have been here every day for 23 years.”
Another issue surrounding the markets’ economy is many vendors come from outside San Marcos, meaning the money they make does not circulate back to local businesses, as they would return to their cities to spend most of the money there.
“What are they contributing? Something to the community? No, not really,” Marrs said. “They’re competing with me and taking money away from me. That is a percentage of money that I would add back to the community and they are not.”
It is unlikely vendors are paying San Marcos taxes unless they live in the city, which is something local businesses have to do. According to Tax Hero, businesses in San Marcos must pay a sales tax rate of 8.25%. However, vendors still have to pay taxes to the state comptroller every quarter based on sales, as well as the IRS, given they follow these rules.
“[Our taxes] go to the schools and upkeep of the roads,” Marrs said. “I know a bunch of these [vendors] don’t live here, so they’re pulling from [San Marcos].”
Vendors and customers of the markets affect local businesses in other ways, such as taking up the limited parking spaces downtown that could be used for customers of the shops, and devaluing products sold at local businesses.
The city tends to suggest local businesses should start vending at the markets too, but many don’t believe it’s affordable or fair that they should have to compete in the first place, due to already having to pay for and upkeep a brick and mortar business.
Many local businesses don’t believe markets should stop altogether, but they do want solutions to be implemented. Some solutions could be decreasing the frequency of markets, creating parking specified for vendors and market customers and more signage promoting local businesses.
While the downtown markets are a fun addition to the community, local businesses don’t deserve to have their sales negatively impacted. The markets should not end, but mindful solutions must be implemented.
–Jayce Jackson is a journalism sophomore
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