2.08.2003

Celebrate your independents

Shopping at local independent businesses has an enormous impact on the local economy, according to two new reports cited by the New Rules Project of the Minneapolis-based Institute for Local Self-Reliance. And shopping at corporate chain stores, as you'd guess, is a suckerpunch to hometown sustainability. Consider the math:

• When you spend $100 at the chain Borders Books & Music, your purchase creates only $13 worth of local economic activity. Spend $100 at a locally owned book or record store and you'll be putting $45 into local circulation--more than three times as much local economic activity. (From the study, "Economic Impact Analysis: A Case Study" conducted by Civic Economics)

•Big box retailers actually drain public coffers, while independent businesses generate more tax revenue than it costs to service them.

The Wal-Marts of the world generate a net annual deficit of $468 per 1,000 square feet. Shopping centers produce an annual drain of $314 per 1,000 square feet. And, worse still, fast-food restaurants have a net annual cost of $5,168 per 1,000 square feet. To be clear, these chains cost taxpayers more than they produce in revenue.

In contrast, specialty retail, a category that includes small-scale Main Street businesses, has a positive impact on pubic revenue. Specialty retail produces a net annual return of $326 per 1,000 square feet. (From a study by Tischler & Associates)

(Thanks, Pete.)

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