Effect of Shopping Malls on Local Economy Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:

Shopping Mall

The American economy was the biggest political topic during the 2012 presidential election. Americans are worried because unemployment rates are high throughout the country, and President Obama has also cut spending to some key sectors such as the military. There is much that is causing the recession that is unrelated to domestic policy, such as what is going in Europe with the debt crisis. However, there are some important domestic factors that need to be taken into consideration when improving the economy. For instance, some parts of the United States have become dependent on the military and on big box retailers for local economies. However, there is a better way to improve the economy than to rely on big box retailers and single employers like the military. That better way is by developing local businesses. Local businesses have been shown to re-invest in their local economies (through increased employment as well as investment) by as much as three to four times as much as a big box counterpart (Lee). Local businesses help to reduce unemployment rates, which is an important factor in stimulating economic growth. In Cincinnati-Middletown, "unemployment rates…peaked higher than state and national averages," (Livingston). Compared with the rest of Ohio at 10.6% unemployment, the Cincinnati-Middletown region had 10.8% unemployment. According to the United States Bureau of Labor Statistics, the United States as a whole had 10.1% unemployment during that same period (Livingston). Before the recession, Cincinnati area unemployment was just 5.5%. Interestingly, companies in Cincinnati that sell their products abroad are doing well. This is because the American dollar is low vs. other currencies. American goods are therefore relatively cheap to buy on the foreign markets. Therefore, one of the key solutions to America's economic problems will be to stimulate local economic growth through farmer's markets, local restaurants, and shopping malls that house local businesses.

Farmers markets offer an important way of stimulating local economies by promoting local businesses and reducing dependence on big-box retailers. In Colorado, the Greeley Farmers Market celebrated its twentieth anniversary of operations. The birthday celebrations represent a significant change in the way consumers purchase their edible goods in Greeley. A farmer's market provides an "outlet for smaller producers to market their wares and food to an ever-increasing population of people who are willing to make an extra trip to buy outside the grocery store box," ("Farmers market important to local economy, producers"). As a result of the farmer's market, money stays more firmly in the local economy, rather than being thrown out to middlemen or worse, to companies that outsource. Moreover, farmer's markets have an important role to play in stimulating quality of life as well as local economies. The quality of life in Greeley has improved due to the farmer's market. The people who attend the farmer's market enjoy entertainment, socialization, and interaction with neighbors. They also have access to produce that is fresher than it would be if it were stocked on big box store shelves. The farmer's market also offers consumers greater variety than they might receive in one of the mainstream supermarkets in Greeley. One shopper is quoted as saying, "it also provides a place where people can sell anything, from coffee to crafts, bread to burritos, meat to marmalade and much more," ("Farmers market important to local economy, producers"). The farmer's market model is also better for the local and regional environment because it reduces the amount of trucks and other forms of transport are used when marketing produce in the more traditional ways. According to the United States Department of Agriculture, there are currently almost 8000 (7,863 to be exact) farmer's markets in operation throughout the United States; on the other hand, in 1994, there were only 1,744 farmers markets operating in the United States ("Farmers market important to local economy, producers"). Farmers markets have grown in size attracting an increasing number and variety of local businesses.

Local and domestic tourism provides another very important way of stimulating the economy. In New Hanover County, for example, tourism is the big money draw. In 2011, tourism spending "jumped more than 6% to more than $425 million," which is near what it was before the economic recession began (Foss). Tourism dollar spending has increased steadily for the past few years in New Hanover County. Most of the tourism is from domestic travelers. Tourism is proving beneficial to the local New Hanover County economy. This is true for employment rates and long-term benefits, as well as local restaurant, bar, shop, and hotel revenues that offer short-term benefits too. "In 2011, the county's tourism industry helped pay 5,100 workers nearly $95 million, and 100 new industry jobs were created," (Foss). The domestic tourism trend is a regional phenomenon too, revealing a growth pattern that is connected and pervasive. In other words, a family visiting New Hanover County might also be visiting Guilford, Buncombe. Mecklenburg, Wake, Dare, and Forsyth counties in the same trip because of geographic proximity. The net benefits of domestic tourism can be felt throughout an entire region or state. This is somewhat dependent on the price of gas. When gas prices are reasonable, then tourists are more willing to drive around more within the region they are visiting. When gas prices are high, it would possibly mean that tourism numbers and therefore revenues drop within that area. Heilman, for example, points out that gas prices have an effect on tourism.

Another way of stimulating the local economy is by promoting local Christmas shopping instead of online Christmas shopping. Local retailers rely on the seasonal shopping patterns each year. "Retail sales for Christmas are critically important in the annual economic performance of individual businesses, their employees, and via sales taxes, in the financial health of municipalities," ("Local shopping spurs economy"). One reason for the benefit of seasonal shopping is the tax revenue it generates for the states that collect income tax, such as Mississippi. Another reason is that shopping during Christmas injects much-needed cash into the local economies. Christmas shopping is certainly important to the local economies around the country. " The Gallup survey conducted Nov. 3-6 found Americans said they would spend an average of $764 on gifts this season, a 7% increase over 2010," ("Local shopping spurs economy"). Numbers clearly show the benefit of shopping local and supporting local businesses instead of major chains. "The amount of revenue returned to the local community by locally-owned, independent businesses showed that 52% of all revenues went back into their communities compared to about 14% for national chain stores," (Lee). This is especially true for local restaurants. Lee points out, "local eateries returned nearly 79% of revenues compared to just over 30% for national restaurants." Shopping local has a huge impact on stimulating the local economy. It might be the most important things Americans can do. Real estate appraisers can help local economies promote small business growth via the implementation of more local shopping malls housing local and small businesses. "The demand and supply factors that can affect the value of a subject property located within the boundaries of a local economic area," (Rabianski). Rather than buy goods online on Amazon.com or another major retailer, the money can go to local businesses. Moreover, it is important for consumers to be patrons of small independent stores in their communities. Shopping at Wal*Mart and other big box stores is detrimental to the local economy, because the owners of those companies do not really funnel back the money in the same way. Minimum wage jobs are not going to stimulate the economy in the way that small business growth can stimulate the local economy. Lee points out that "a new economic study that shows spending money at local businesses can have a bigger impact on the local economy than spending at national chains." In Salt Lake City, Utah, a study showed that "overall, locally-owned, independent businesses return 382% more dollars to the…economy than chain retailers," (Lee). However, many local retailers are starting to offer their customers in the city or even outside the state an opportunity to buy their goods online. This will help the local economy, but in more indirect ways. A third reason why the Christmas season is important to the local economy is employment rates improve. For companies that sell wares online, they will need more staff to help fill orders. This is good for the local economy. Similarly, businesses selling their goods online will need to hire local web developers and graphic designers to help them. This is also good for the local economy. One drawback is that there are poorly established tax codes in some states. Some states are not generating the tax revenues they could be generating by levying fees on online shopping experiences. "Internet sales, which usually do not contribute to local employment, sales tax revenue or profitability are becoming a serious factor in planning for local businesses," ("Local shopping spurs economy"). Yet in spite of the increasing number of consumers who prefer to…[continue]

Cite This Essay:

"Effect Of Shopping Malls On Local Economy" (2012, November 11) Retrieved December 10, 2016, from http://www.paperdue.com/essay/effect-of-shopping-malls-on-local-economy-107350

"Effect Of Shopping Malls On Local Economy" 11 November 2012. Web.10 December. 2016. <http://www.paperdue.com/essay/effect-of-shopping-malls-on-local-economy-107350>

"Effect Of Shopping Malls On Local Economy", 11 November 2012, Accessed.10 December. 2016, http://www.paperdue.com/essay/effect-of-shopping-malls-on-local-economy-107350

Other Documents Pertaining To This Topic

  • Effect of Grocery Store by Entrance of Hypermarket in Bangkok Thailand...

    Grocery Store by Entrance of Hypermarkets in Bangkok Thailand Small grocery store owners in Thailand are faced with the ever growing threat of foreign -- owned hypermarkets. Hypermarkets are part of a global trend that threatens to destroy the small grocery store. If this trend continues the traditional market structure of Thailand might become obsolete in the future. This research explores strategies that small grocery store owners can employ to

  • Shopping as Entertainment When the Bluewater Shopping

    Shopping as Entertainment When the Bluewater shopping center in Kent advertises itself as 'the most innovative and exciting shopping and leisure destination in Europe today' (Bluewater website) it is reflecting a widespread and highly significant trend. For many contemporary large-scale shopping centers, leisure and entertainment are as important as, and are thoroughly integrated with, their retail activities. The combining of shopping with entertainment has been recognized in the cumbersome term 'shoppertainment'

  • Influence of Brand Effect on Consumption Behavior of the Irish and...

    Brand Effect on Consumer Behavior Influence of Brand Effect The influence of brand effect on consumer behavior: Irish and Chinese consumers in Ireland This paper discusses the influence of brand effect on consumption behavior of the Irish and Chinese in Ireland. Since shopping and purchase decision are affect by many sociological factors, the factors that influence the Chinese and the Irish in Ireland may be inherently distinct. While the Chinese population in Dublin is

  • Professional Journals Resources Burger King Beefs Up

    professional journals resources. Burger King beefs up global operations What is Burger King's core competency? How does it relate to its chosen strategy? Burger King is a fast food chain that offers two unique components to customers regarding its 'burger experience': the ability of users to customize their burgers and also the fact that its burgers are flame-broiled (Brock 2012). How would you explain how Burger King has decided to configure and coordinate

  • Eviromental Analysis Porters Powers SWOT Analysis Sbout

    eviromental analysis, Porters powers SWOT analysis sbout a project . My project open a retailing medical company buys locally import medical surgical consumables . The company manufacture prodect, copmany import consumables saudi arabia resell local market, Also company buy medical surgical items local market bulk quantities factories resell . Medic Retailers is intended to be a large organization that will deal in the sale of medical supplies to consumers in

  • Brazil Hospitality and the 2014 World Cup

    Brazil Hospitality and the 2014 World Cup Brazil is in 2014 expected to host an estimated 50,000 soccer fans from all over the globe. The event is to last for four weeks. The fans are expected to stay in the hotels, eat in restaurants, shop and visit Brazil's many attractions. Hosting an event of this magnitude is a challenge especially for a developing economy like Brazil. However, with careful planning the

  • Social Responsibility Strategy

    Social Responsibility Strategy Veolia Transportation Company ensures the improvement of livelihood of people living in various cities, in America. The company offers high quality and environmentally friendly transportation services to the people. The company operates in cities, airports, universities and companies. Clients sought for Veolia services in operating their transport systems. Throughout the years, Veolia has been a leading transportation company in North America. Its contribution to the transport system has


Read Full Essay
Copyright 2016 . All Rights Reserved