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Buy Local, Eat Local . . . Invest Local 43
cited. It found that for every $100 spent at a local store, a full $68
remains in Chicago. The same amount spent at a chain would net
only $43. In San Francisco, a city that has preserved its retail independence,
a 2007 analysis concluded that a 10 percent market share
increase by local merchants could create $200 million in additional
economic activity and create more than 1,300 jobs. The fi ndings
of a 2008 study of Grand Rapids, Michigan, were similarly stunning:
A 10 percent shift of sales from chains to locals would result
in a $137 million jolt to the local economy and 1,600 new jobs.
Now there’s a stimulus package that won’t cost taxpayers a dime.
A more recent study by Civic Economics, completed in
September 2009, was commissioned to help guide post- Katrina
development and renewal in New Orleans. The study focused on
a four- block stretch of retail- heavy Magazine Street that is home
to 100 independent businesses that collectively occupy 179,000
square feet of retail space. Of the $105 million in sales generated
by the businesses, about a third, or $34 million, stays local. In contrast,
a SuperTarget store composed of the same amount of retail
square footage (not including parking) would generate $50 million
in annual sales, the study estimated, of which just $8 million,
or 16 percent, would remain local. Extrapolating the results out to
the broader New Orleans economy, the report concluded that an
all- local retail economy would generate $2.35 billion more a year
in local economic activity than an all- chain economy. Neither
extreme is realistic, of course, but the message is clear: Local
enterprises provide more bang for the buck to their communities.
What those studies don’t capture is the extent to which locally
owned businesses add to the diversity, character, and appeal of our
neighborhoods and downtowns. By promoting human scale commerce,
local merchants facilitate chance encounters and chats with
neighbors. These casual interactions are more than friendly diversions.
They are essential for building the relationships and civic bonds
that make for a healthy, well- functioning society and democratic
process. Even as our Facebook connections have multiplied into the
hundreds, studies have shown that most Americans’ core networks—
the people they can discuss important matters with—have shrunk
and become less diverse in the past two decades. Just 43 percent of