Economic Studies

SCF Arizona Case Study

The Economic Impacts
of Buying Locally

SCF Arizona, a 555-employee company, has a half billion dollar impact on Arizona in 2009.

Local First Arizona retained Applied Economics to perform an economic benefit analysis of the operations of SCF Arizona on the State of Arizona. Read the study online or download a PDF here.

The findings of this analysis show that locally owned companies with a vested interest in the community in fact do create a greater economic impact, indirectly supporting more jobs, payroll and output locally. They also create a greater revenue impact in that more of the taxes they pay, and their employees pay, stay in Arizona.

View the full SCF Arizona Case Study page.

Thinking Outside the Box: A Report on Independent Merchants and the New Orleans Economy

The Urban Conservancy in partnership with Civic Economics: A 2009 study in New Orleans finds that shifting 10% of spending from chains to locally-owned businesses would create hundreds of new jobs and have the equivalent of injecting $60 Million annually in the form of recirculating currency.

San Francisco Retail Diversity Study

SFLOMA & Civic Economics: A 2007 study in San Francisco analyzes the market share of several categories to find out what percentage is held by chains or locally-owned businesses. It then calculates that if 10% of spending were shifted from chains to locals it would increase economic output by almost $192 Million, create almost 1300 new jobs, provide almost $72 Million in new income for workers, and create over $15 Million in additional retail activity.

Economic Impact study

Civic Economics: A 2002 study in Austin found that for every $100 spent at a chain bookstore, the economic impact was $13, whereas when spent with a local bookstore the economic impact was $45. It also shows that local merchants spend a much larger portion of total revenue on local labor to run the enterprise and sell the merchandise, keep their modest profits in the local economy, and provide strong support for local artists and authors, creating further local economic impact.

Time to Switch Drugstores?

Consumer Reports: 32,000 Consumer Report readers were surveyed about their drugstores and pharmacies. Published in 2003, the findings showed that more than 85% of customers at independent drugstores were very satisfied or completely satisfied with the experience, with only a 58% approval for chain drugstores. Also the highest prescription prices were found at the national chains.

The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine

Institute for Local Self-Reliance and Friends of Midcoast Maine: A 2003 study in Maine found that when residents of the Midcoast region spend $100 at a big box retailer, their purchase generates $14 in local spending by the retailer. That same $100 spent at a locally owned business generates $45 in local spending, or three times as much. Dollars spent at a local retailer support not only that store, but a variety of other local businesses, including local banks, accountants, printers, and internet service providers.

Fiscal impact analysis

Tischler & Associates, Inc.: This 2002 study in Massachusetts finds that big box retail, shopping centers, and fast food restaurants cost taxpayers in Barnstable more than they make in revenue, where gains were made by specialty retail (including small businesses).

10 Reasons Why Vermont's Homegrown Economy Matters: And 50 Proven Ways to Revive It

Stacy Mitchell (New Rules Project) & the Preservation Trust of Vermont: This 60 page publication by Stacy Mitchell of the New Rules Project details the importance of local business and points out the importance of community engagement to create downtown revitalizations, sustainable planning policies, and curbing urban sprawl.

Report on Independent Business impact

Santa Fe Independent Business & Community Alliance and Angelou Economics: A 2003 Santa Fe study shows how national chains in that city are growing at a rapid rate, resulting in a large outflow of money from the local economy. It details how impact of dollars spent at independent businesses deliver two times the economic impact of spending at national chains.

Independent Retailers Outperform Chains Over Holidays, National Survey Finds

January 2009 by Stacy Mitchell: A survey finds that independent retailers, especially those in communities with "Buy Local" campaigns, showed stronger numbers throughout the holidays than did national chains.