Chain Stores--The Studies

Back to the Chain Store talk. I'm eager to see what the News reports on Nantucket's handling of things.

So, unlike the Barnstable study cited in the previous post, the "Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine" directly tackles the locally-owned vs. chain store issue.

Not surprisingly, things don't look so good for chains.

First, the Objective: In the words of the report:

We wanted to find out, if a local store makes $100 sale, what happens to that $100? How much goes to pay local employees and local suppliers, thereby creating additional economic activity in the region. How much goes to out-of-state suppliers, thereby leaving the Maine economy? If that $100 is spent instead at a big-box retailer, does more or less of it stay in the local economy?

Now, The methodology: The analysts convinced eight locally owned businesses in Rockland, Camden and Belfast to share their economic on their revenue and expenditures for 2002. According to the report, the companies sold a range of goods and had been in business anywhere from five years to 40+ years. They reported $5.7 million in sales during 2002 and employed 62 people.

The researchers then compared this to data they collected on chain or big-box stores. According to the report, researchers relied on "published information on employment and property tax revenue for one of its local stores; statements made by company officials about the volume of inventory, supplies, and services purchased in the state; statements made by company officials about local charitable contributions; and national sales data."

Finally, the results.

As we've read in several articles, the study suggests that the eight companies surveyed spent, on average, 53% of their revenue within the state while chain stores spent only 14% of their revenue within the state. It also presents data that suggests local firms are more charitable then chains.

So what' are my problems? They're coming up.