Archive for February, 2013

BUYING LOCALLY HELPS ALL OF US

Thursday, February 7th, 2013

Choosing a locally owned store generates

almost four times as much economic benefit

for the surrounding region as shopping

at a chain, according to a new study from

the Civic Economics research organization.

Civic Economics researchers analyzed

data from fifteen independent retailers and

seven independent restaurants, all located

in Salt Lake City, and compared their impact

on the local economy with four chain

retail stores, including OfficeMax, and

three national restaurant chains.

The study found that the local retailers return

an average of 52% of their revenue to

the local economy, compared with just

14% for the chain retailers. Similarly, the

local restaurants re-circulate an average of

79% of their revenue locally, compared to

30% for the chain eateries.

Independent businesses spend much

more on local labor, the study finds. They

also procure more goods for resale locally

and rely much more heavily on local

providers for services like accounting and

printing.

This means that much of the money a customer

spends at a local store or restaurant

is re-spent within the local economy, supporting

other businesses and jobs.

This is in sharp contrast to chains, which

have little need for local goods and services

and keep local labor costs to a minimum.

Most of the revenue that these

stores and restaurants capture leaves the

community, the study finds.

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