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Myth: Chain Stores will bring economic growth to an area.
Fact: It is no secret that profits from a chain store go outside of the community whereas profits from your locally owned store, stay local. What you may not know is the net result of chain stores on employment typically results in a net loss of retail jobs along with lower wages for the chain store employees. (Institute of Industrial relations, Working Papers, 2005).
Local Payroll – A locally owned independent business spends more of their revenue on local labor (29% vs. 23%), since all management are on site and not in a corporate headquarters outside the community.*
Procurement – Locally owned businesses spend more than twice as much buying goods and services from other local businesses.* Haywood Appliance banks locally, hires local accountants, attorneys, printers and so on. This creates a ripple effect through the community.
Profits – While dollars spent at locally owned stores stimulate the local economy, dollars spent at chains are siphoned out of the community. Haywood Appliance is a family owned business, and the majority of our profits stay in Western North Carolina.
*Source Civic Economics, The Andersonville Study of Retail Economics, Oct.2004
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