Chamber Study Points To Massive Local Economic Boost By Shopping Local

The facts are in.

The facts support what has been said for many years.

The facts prove that supporting local business helps create local jobs and community.

The facts state even minor increases in spending habits to local businesses can have a major accumulated effect upon a community.

Those are the results of a study commissioned by the Moose Jaw and District Chamber of Commerce and conducted by Regina-based Praxis Consulting showing the effects of all local consumers increasing their spending at local businesses by just ten (10) percent.

“It really, really shows the impact if there is just a ten percent shift to local businesses,” Rob Clark CEO of the Moose Jaw and District Chamber of Commerce told MJ Independent.

“According to the study just a 10 percent shift of present spending towards local business can create 729 new jobs, $30.9 million in total labour income and generate a $79 million increase in local GDP (Gross Domestic Product) as well as $139.4 million in total gross output in the (Moose Jaw) economy,” Clark said.

The Praxis Consulting study pointed to previous studies showing the impact of consumer spending on local small firms, where 50 percent of consumer spending was recirculated within the community, versus large chain stores where 14 percent of all consumer spending is recirculated within the community.

“There are other impacts of shopping local,” Clark said pointing to how many smaller local stores sponsor local events and activities versus most larger retailers who do not support local events and activities at the same rate.

SOURCE - Findings from a study commissioned by the Moose Jaw and District Chamber of Commerce

He is however quick to point out there are exceptions like Canadian Tire which is heavily involved supporting local events and activities.

The study shows the impact of a 10 percent shift in consumer spending hits in three areas - the initial purchase, then related services and finally more purchasing in the sector.

“The bulk of direct activity occurs within the retail and finance, real-estate and rental industries. Indirect impacts occur within largely within the professional services and business services industries reflecting the high proportion of specialized services required for retail operation. Induced impacts, which represent the additional impacts of consumer spending of wages earned, is concentrated heavily within the retail trade and service industries,” the study read.

Clark pointed out how local spending does not just get spent on the local retailer but it also flows over to the services necessary to support the retailer and finally more spending back into a local retailer.

“The study shows spending locally impacts far past the initial purchase,” he said.

Clark said at the present time the Chamber is busy trying to encourage people to shop local that the ten percent shift is possible. Even if it was a few percentage shift by one individual and a larger one by another individual that any move to local helps make for not just a better economy but a better city.

It all gets re-spent countless times locally he said emphasizing the multiplier effect local spending has on the local economy.

The Praxis Consulting Study points to the COVID - 19 pandemic and the effect it had on many people’s spending habits and how they spent what they could locally to help local small business. It is something that happened in Moose Jaw as there was an active campaign - by the Chamber and others - for local consumers to support local businesses.

Asked about the growth of on-line retail giants Amazon.com and Wish.com throughout the pandemic Clark is a realist about the odds of stopping their influx into local retail markets.

Amazon.com encountered massive growth throughout the pandemic as quarantined consumers continued to spend money but not at often shuttered local traditional bricks and mortar retailers.

But even turning back some of the retail seepage to large on-line faceless corporations would massively impact the local economy for the better, he said.

“Let’s be honest you are not going to wean people off of it. But if you can get some people to realize that shopping locally is good for the community and they start spending locally it makes for a beautiful community.”

It is a philosophy the Chamber is now embracing through its present campaign - Live. Love. Local #ShopTheJaw campaign.