Wondering whether spending a few extra minutes at the corner shop really matters? The benefits of shopping local are measurable: studies found independent businesses keep far more revenue in town than chains do.
This guide sits within our wider coverage of local businesses and community, so you can keep exploring once you have the numbers.
| Item | Value |
|---|---|
| Revenue returned locally by independents (Raleigh, 2018 study of 12 businesses) | 47.5% of revenue |
| Revenue staying local from national chains (Raleigh study, average) | 13.6% of revenue |
| Revenue returned locally by independents (Salt Lake City, 2012 study) | About 52% of revenue |
| Revenue returned locally by national chain stores (Salt Lake City, 2012 study) | About 14% of revenue |
| Local eateries versus national restaurants (Salt Lake City, 2012 study) | Nearly 79% versus 30.4% of revenue |
| Extra revenue kept if Raleigh shifted 10% of spending to independents | $5 billion per year |
The figures come from Shop Local Raleigh’s December 6, 2019 post about its 2018 study and from a KSL report dated Aug. 15, 2012. Figures can change, so check the source before you rely on them.
What the research says about where your money goes
The clearest numbers come from studies by Civic Economics that track revenue recirculation. They ask how much of each sales dollar stays in town when you spend at an independent business instead of a national chain.
In 2018, Shop Local Raleigh sponsored an Indie Impact Study conducted by Civic Economics. Twelve local, independent businesses opened their books, and the analysts compared them with national competitors, according to Shop Local Raleigh.
The result: 47.5% of revenue from the participating independents returns to the local economy, while national chains leave an average of 13.6% in the community. The same page says an earlier study in 2012 pointed the same way.
A Salt Lake City study reported by KSL on Aug. 15, 2012 found a similar gap. There, 52 percent of all revenues from local independents went back into their communities, compared with about 14 percent for national chain stores.
Why the benefits of shopping local reach beyond the register
Revenue that stays in town does not just sit in an account. Shop Local Raleigh describes several ways it shows up when you support independent businesses:
- More jobs for residents
- Extra tax revenue for local governments
- More investment in commercial and residential districts
- Enhanced support for local nonprofits
Those are the organisation’s own readings of its study, so treat them as a reasoned argument rather than a guarantee for every neighbourhood. They still give you a useful map of where a local dollar can travel next.
If you want to see how a single payment can keep working inside a community, the explainer on the local economy multiplier effect walks through the idea in plain terms.
Restaurants, retailers and the chains they are compared with
The gap is not the same for every kind of business. In the Salt Lake City study, local eateries returned nearly 79 percent of revenues, compared with just over 30 percent for national restaurants, as KSL reported.
The comparison groups were named in that report. For retail, Civic Economics analyzed annual reports for four major national chain stores: Barnes & Noble, Home Depot, Office Max and Target. Those stores recirculated an average of 13.6 percent of revenue within the local markets that host them.
For restaurants, the report analyzed three national chains: Darden (Olive Garden, Red Lobster), McDonald’s and P.F. Chang’s. Together they returned an average of 30.4 percent of revenue, per the same KSL article.
The study’s sample was small but mixed: it included 15 retailers and seven restaurateurs, all independent and locally owned. That mix is why the restaurant and retail figures are reported separately rather than blended into a single number.
Three ways the same gap gets described
People who discuss these studies often express the difference in different ways, which can make it sound as if the findings disagree. They mostly describe the same gap with different arithmetic:
- Local First Utah’s executive director said independents return 382 percent more dollars to the Salt Lake City economy than chain retailers.
- She also summed it up as “four times the amount of dollars” staying in the community when you spend at a local business.
- Civic Economics partner Daniel Houston said every study the firm has conducted around the country showed shopping locally can keep at least three times more revenue in the local economy.
All three statements appear in the KSL report. Read them as a pattern across cities, not as a precise forecast for your own town.
What a 10% shift could keep in town
Both studies turn the percentages into a simple thought experiment about moving a slice of spending. Shop Local Raleigh says that if the community shifted just 10% of its spending from chains to independent retailers, an additional $5 billion in revenue would stay in the local economy each year.
The Utah study reached a comparable conclusion. It found that shifting just 10 percent of purchases from national chains to local retailers and restaurants would keep $487 million in the Utah economy, according to KSL.
The appeal of this framing is that it asks for a modest change rather than a lifestyle overhaul. You are not being asked to stop using chains, only to nudge a small share of your regular spending toward independents.
Business owners also describe a shift on the ground. A Salt Lake City bookshop co-owner told KSL in 2012 that her store’s sales had risen 12 percent since January, and she said, “People really care about their community.” That is one owner’s account, not a study result, so weigh it accordingly.
How far should you trust these numbers?
The research is useful, but it has limits that a careful reader should keep in view. A few points matter most:
- Sample size: the Raleigh study looked at 12 independent businesses, and the Salt Lake City study at 15 retailers and seven restaurateurs.
- Who paid for it: Shop Local Raleigh sponsored its study, and the Utah findings were presented by the head of a local-first group.
- Age: the Utah report is from 2012 and the Raleigh post from December 2019, so local conditions may have moved on.
- Scope: the studies measure where revenue goes, not prices, quality or convenience.
None of that erases the pattern. The Raleigh page notes its 2018 results echoed the earlier 2012 study, and Civic Economics partner Daniel Houston says studies elsewhere point the same way. Still, the exact percentages are best read as examples, not universal rules.
Simple ways to put local first into practice
You do not need to rebuild your routine to act on this. A small, repeatable habit usually works better than a short burst of enthusiasm.
- Choose a category you buy often, such as coffee, books or a weekly meal out, and try an independent option first.
- Look through a local business directory or map to find independents you did not know were nearby.
- Tell friends about a good find, or leave an honest review so others can discover it.
- Keep chains where they genuinely serve you best, and shift only the share you are comfortable shifting.
If you enjoy celebrating shops you admire, these local business spotlight ideas offer ways to share their stories with your neighbours. This site is independent and educational, so it does not sell services or take enquiries on behalf of any business.
Frequently asked questions
Is shopping local always cheaper?
Show answer
Not necessarily, and the studies do not claim it is. They measure how much revenue stays in the local economy, not shelf prices, so compare prices and quality yourself.
How much of my money stays local when I buy from an independent?
Show answer
In Shop Local Raleigh’s 2018 study, 47.5% of revenue from participating independents returned to the local economy, versus an average of 13.6% for national chains (source). In Salt Lake City, the figures were 52 percent versus about 14 percent (source).
Does shifting a small share of spending really matter?
Show answer
The studies project that it could. Raleigh’s analysis estimated an additional $5 billion a year would stay local from a 10% shift (source), and the Utah study estimated $487 million from a 10 percent shift (source). These are projections, not guarantees.
Do I have to give up chains completely?
Show answer
No. The framing in both studies is about moving a portion of spending, such as 10%, rather than all of it. Pick the purchases where a local option suits you best.
