Ben Schiller, a writer for Co.EXIST (Fast Company), recently reported that a new study finds that money spent at chain stores quickly leaves the community, while money spent at local businesses helps make the neighborhood better.
“Civic Economics has been running the numbers for lots of towns and cities over the last 10 years. And the newest batch of studies–for Louisville, Milwaukee, Ogden, Utah, and the Six Corners area of Chicago–corroborate what at least eight similar ones have shown. Money spent at independent outlets is more likely to stay local than that spent at a chain. The study for Louisville found that independent stores recirculate 55.2% of revenues compared to 13.6% for big retailers, and that local restaurants recirculate 67%, while big chains do 30.4%.”
In California, where General Fund services such as parks, police and fire are funded through sales tax revenues, the local impact is even greater. To read the full article as published on the Fast Company/Co.EXIST website, click here.
To learn more about Riverside’s shop local incentive program, Shop Riverside, click here.