During September 2017, an Economic Leakage Study was conducted within the Copper Corridor. This study consisted of two electronic surveys; one for general consumers and one for business owners. Results and conclusions from this survey are available below. These conclusions, although not quantitative information, show trends and estimates based on the respondents(35 for consumers and 13 for businesses). The following are speculations based on the trends that emerged from the surveys. Consumer respondents represent the demographics of the area and are 0.3% of the combined populations of Globe/Miami. For the purpose of this study, the “local trade area” is defined as within a 25 miles radius.
General Consumer Survey
How much is being spent?
- The average annual income of survey respondents is $54,500.27 compared to the area average annual income of the are at $50,218.55.
- 65.72% of respondents spend between $50-$300 at Big Box Retailers a month
- On average, survey respondents collectively spend $6,225 at Big Box retailers each month. If they are an accurate representation of Globe/Miami then on average, the combined communities collectively spend $1,628,584.50 a month.
- On average, survey respondents collectively spend $9,850 a month at grocery store chains. If they are an accurate representation of Globe/Miami then on average, the combined communities spend $2,576,957.
- 84.85% of respondents spend less than $150 at locally owned businesses a month.
- On average, survey respondents spend $4,450 at online retailers a month. If they are an accurate representation of Globe/Miami then on average, the combined communities spend $1,164,209 at online retailers each month.
- Knowing that the online retailers do not collect local sales tax, using the average of the local sales taxes between Globe and Miami ((2.5+.2.3)/2=2.4), the combined communities are missing approximately $27,941.16 in tax revenue each month.
- That results in approximately $335,293.92 annually in missing tax revenue.
Why is money being spent outside the local trade area?
- 30% of respondents specifically said they leave the local trade area to purchase bulk items.
- According to respondents, the average out of town shopping trip costs approximately $215.71. This includes transportation, lodging and purchases.
What are the specifics of out of town shopping trips?
- Using the above average, respondents collectively spend approximately $12,726.89 a month on out of town shopping trips. If they are an accurate representation of Globe/Miami then on average, the combined communities spend $3,329,608.96 a month on out of town shopping trips each month.
- If all of that money was spent locally, the combined communities would see approximately $79,910.61 in additional tax revenue each month.
- 40% of respondents leave town to shop on Saturdays
- Trailed by Wednesday at 17.14%
What is desired in the local trade area?
- Respondents specifically mentioned the following as goods and services they would like made available:
- Fabric and Craft Supplies
- Home Repair Supplies
- Plus Size Clothes
- Higher Quality Clothes
- Kids’ Clothes
- Men’s Clothes
- Medical Gloves
- Plastic Mattress Covers
- Wider Variety of Groceries
- More Chain Stores
- Baby Items
- Specialty Food Stores
- Affordable Produce
- Name-brand Cosmetics
General Attitudes on Types of Shopping
- 80% of respondents agree that “Shopping local contributes to the local quality of life”
- 85.71% of respondents agree that “Internet shopping offers better selection than local stores”
- 80% of respondents agree that “We like the help and friendliness we can get at local stores/businesses”
Business Owners Survey
Where are supplies bought?
- 38.46% of respondents buy businesses supplies within the local trade area
- 53.85% of respondents buy businesses supplies outside the local trade area
- 61.54% of respondents buy businesses supplies on the internet
- 7.69% of respondents have supplies donated
How much is spent on supplies?
- Average of money spent monthly per respondent
- $340.90 Inside the Local Trade area
- $293.18 Outside the Local Trade area
- $425 Internet
What is bought outside the local trade area and why?
- Listed are the products that respondents report to buying outside the local trade/internet are:
- Paper Goods
- Office Supplies
- Bulk Items
- Medical Supplies
- Cleaning Supplies
- Store Display Items
- Cell Phones
- Copy Paper
- 84.62% respondents report to buying the following on the internet or outside the local trade area because “They are cheapest form this source.”
- 53.85% respondents report to buying the following on the internet or outside the local trade area because “I am unaware of anywhere in the local trade area to purchase them”
- 30.77% respondents report to buying the following on the internet or outside the local trade area because “I prefer shopping online for the convenience.”
- Respondent Ideas to keep business within the local trade area:
- Buy Local Campaign
- Give local “credit”.
- Brand local products
- Better Customer Service
- Price Matching
- Hire Locally and train locally
- Help improving businesses websites