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WHY SHOP DOWNTOWN FIRST? IT ADDS UP

Shop DowntownFebruary 17, 2010—Are the businesses in historic downtowns worth extra loyalty from customers? A new study of the recovery in New Orleans says yes. Two groups, the Urban Conservancy and Civic Economics, compared stores in an old downtown area with chain stores in shopping malls. This is what they found:

• Small, locally owned shops generated twice the annual sales per square foot.

• Local shops recirculated revenue within the community at twice the rate.

• Local shops had 4 times more local economic impact in wages, profits, procurement of goods, charitable giving, and other categories.

• Plus, the researchers estimated that if consumers in the study area shifted just 10 percent of their spending from chains to locals, they’d put $60 million into the local economy that otherwise disappears and goes elsewhere.