UPFRONT // MAIN STREET MATTERS
Keeping Canadian consumer spend in the country by promoting shop local Helping consumers understand the value in shopping with local small businesses to benefit the overall health of the Canadian economy // By Ryan Mallough, Vice-President, Legislative Affairs, Ontario and VicePresident, Communications, Canadian Federation of Independent Business
There’s no better way to spend a fall afternoon than walking down main street and checking out the local shops. The window displays, the great products and – if you’re like me – the sweet treats often leave my wallet feeling a little bit lighter than when I started. I’m always happy to support a great local business when I’m able. But I never really think about what happens to my dollar after I spend it. Turns out most Canadians are the same When it comes to shopping, Canadian consumers really don’t understand how our money is recirculated after we make a purchase. A recent Angus Reid Group public opinion poll conducted on behalf of CFIB showed that Canadians wildly overestimate how much of each dollar they spend at multinational companies with bricks-and-mortar locations, like the Walmart around the corner, is reinvested locally. At the same time, they underestimate small businesses’ contributions. When asked to guess how much money stays local when shopping at a large retailer with a physical location, on average Canadians said 37 8 | Retail Insider the magazine | Volume two Issue three
cents. Respondents also guessed that 38 cents on average stays in the community when buying from a small business. This means Canadians think that large multinationals and small businesses contribute almost equally to local economies. Not only is that not true, it’s not even close Our research shows that when consumers buy from a local small business, 66 cents out of every dollar spent stays local. On the other hand, only 11 cents of every dollar spent stays within the community when customers shop at a large multinational business. The difference is staggering It means 55 cents of every dollar spent gets pulled out from your community when consumers shop at large retailers. Or thinking about it the other way: six times more money goes back to your community when customers choose to shop local. These results prove again how essential small businesses are to our local economies. Their
