by Civic Economics, October 2004
This compelling study, commissioned by the Andersonville Development Corporation, finds that locally owned businesses generate 70 percent more local economic impact per square foot than chain stores. The study’s authors, Dan Houston and Matt Cunningham of Civic Economics, analyzed ten locally owned restaurants, retail stores, and service providers in the Andersonville neighborhood on Chicago’s north side and compared them with ten national chains competing in the same categories.
They found that spending $100 at one of the neighborhood’s independent businesses creates $68 in additional local economic activity, while spending $100 at a chain produces only $43 worth of local impact. They also found that the local businesses generated slightly more sales per square foot compared to the chains ($263 versus $243).
Because chains funnel more of this revenue out of the local economy, the study concluded that, for every square foot of space occupied by a chain, the local economic impact is $105, compared to $179 for every square foot occupied by an independent business.
Aikido of Maine / Andrew and Debra Tenenbaum / angela adams / BENCHMARK Residential & Investment Real Estate / The Brand Company / Bull Feeney's / Casco Bay EyeCare / Casco Bay Frames & Gallery / Coffee By Design / CornerStone Building & Restoration / The Fish & Bone / Goodwill Industries of Northern New England / Green Clean Maine / Liquid Riot / Joan Leitzer / Longfellow Books / Marsh Agency / Nine Stones / Nomads / OTTO / Peter Metsch / Old Port Magazine / Port Property Management / Portland Downtown / Portland Farmers’ Market / Renys Department Store / Sebago Brewing Company / Stacy Mitchell / Supreme Clean / The SunriseGuide / Thurstons Wicked Good Burgers / Tsunami Tattoo / University Credit Union / Vervacious / XPress Copy