Big Box Store Myths

Here are five things you may have heard about big box stores that simply aren’t true! 

MYTH 1: Big box stores create local jobs.
A big box chain eliminates more local retail jobs than they create.
For every 1 person hired at a big box store, 1.4 people are displaced at other local retailers.
Bigger stores have a larger sales volume with less people working there, causing surrounding local businesses to downsize, or even close.

MYTH 2: Big box stores boost local tax revenue.
The tax benefits a community gains from a big box store does not even begin to cover the larger amount of community services these stores require.
Big box facilities are large... they take up vast amounts of real estate and require larger, longer roads to be built and regularly maintained.
These facilities also use a large amount of utilities, which may cause the community to have to add more power lines in order to meet the higher demand.
Even though these stores DO bring in tax revenue, there is also a decline in revenue from other local retailers. When you take these factors into account, the boost in revenue is not as great as you might think.

MYTH 3: Big box stores grow the local economy.
Big box stores are not usually locally owned. Every $100 spent at a local independent business creates $68 in additional economic activity in the city, while spending the same amount at a big box store only generates $43 of local impact.
$100 received in revenue in a locally-owned business enables that business to hire more local workers, purchase more goods and services from other local businesses, and contribute more to local charities.

MYTH 4: Big box stores bring more choices for the consumer and increase competition.
Big-box stores often cause surrounding small and mid-sized stores to close, leaving fewer shopping options and less competition.

MYTH 5: Big box stores are the only option.
More cities and towns are saying no to additional big-box development and finding better ways to grow by creating and expanding local businesses.

 
 We want to thank you for your continued support! At PT&S, we are celebrating 60 years of serving our local community and building great relationships.
By continuing to work together with our neighbors, we can all bolster our local economy!