City Will Train Local Merchants in Competitiveness

After heated arguments about the role of government in business, the Glendale Redevelopment Agency on Tuesday voted to spend $25,000 to teach local merchants to become more competitive.

City officials said the training program, for 100 merchants and sales managers, is needed to turn around a drop in city sales tax revenues caused by the recession and increased competition from businesses in neighboring cities.

“These are hard times,” said Charles Larson, president of the Glendale Galleria Merchants’ Assn. “Retailing has changed. Sometimes you have to redevelop people too.”

Retail sales at the Galleria have dropped 10% in the past year, and car sales are off 5%, according to city officials. Sales throughout the five-county Southern California area are down by 5.8%.

Mayor Carl Raggio, who was absent when the controversial proposal was introduced two weeks ago, on Tuesday strongly supported the training program, saying, “I don’t think this is a time for business as usual.”

He argued that the city “can recapture its investment” by underwriting programs that boost the profit potential of small businesses. Two other members of the City Council, which serves as the five-member Redevelopment Agency, agreed. Eileen Givens and Dick Jutras said the city will profit from the improved sales ability of merchants.

The three-vote majority overruled council members Ginger Bremberg and Larry Zarian, who have repeatedly opposed using city money to bolster private business. They called the training program a waste of money and blamed dwindling sales revenues on a lack of customers rather than retailing expertise.

City Manager David Ramsay said the proposal was developed with representatives of the Verdugo Private Industry Council, the city’s volunteer Economic Advisory Council and the Chamber of Commerce after the council earlier this year targeted economic development as the city’s top priority.

Madalyn Blake, community development and housing director, said training programs are being offered in other areas, such as Orange County, to keep existing businesses and to attract new retailers.

“Retailing is going through a major restructuring,” she said in a report to the council. “More than ever, the importance of this training is seen as a way to support owners and managers . . . to achieve high sales through effective, well-trained personnel.”

A series of five-week training programs, to begin within a few weeks, will be conducted by the Glendale Community College Professional Development Center. The center has devised a special curriculum, including a course on dealing with culturally diverse workers and customers.

Training will be provided for 20 retail owners or managers each from the Glendale Galleria, Brand Boulevard and Montrose Shopping Park, plus 40 sales associates from the three areas. Participants will be selected by representative groups in each of the areas.