Bloomington, Surrounding Area Receive Low Ranking on Indie City Index

Earlier this month, the researchers at Civic Economics, in partnership with the American Booksellers Association, released a study measuring the strength of independent retail across America.

 The researchers created an index that measures the proportion of total retail sales captured by independent retailers in the Metropolitan Statistical Area (MSA).  An “index” of 100 is the national average proportion of independent retail to chain sales.  MSAs with an index higher than 100 have a healthier than average independent retail sector.  Bloomington (the MSA includes Green, Monroe, and Owen counties) ranked 245^th  out of 366, with an index of 87.4—lower than the national average.

 As a Bloomington resident, I was shocked to see such a low index!  We have a vibrant independent retail sector, a downtown full of unique shops, and a culture of supporting our local businesses!   However, the data speaks volumes about our area—the proportion of total retail sales spent at locally owned stores is much different than the sheer number of independent shops in our community.  Just because we have independent business does not mean that our community is supporting them.

What does this mean for us?  Several things. 

• First, we can shift our spending to locally owned businesses.  Think about buying your next birthday card from a local shop instead of a chain—I bet you’ll find a more unique card for that special someone.  The 10% shift campaign asks communities to do the same thing.
• Second, we can plug the leaks in the local economy.  If people are heading to a chain store to buy something—it may be because they can’t find the product at a locally owned store!  We should see this problem as an opportunity for entrepreneurship.  Locally owned businesses can provide many of the same types of products for the same price with better, more personalized service. 
• Third, we should continue to support our local business network, Local First Indiana, by spreading the word and encouraging people to Think Local First!  The authors of the report note that a Local First-type network serves most of the best-performing MSAs, and that well-run networks can improve the strength of the independent businesses in their communities.  Networks can help market business, support entrepreneurship, share best practices, and encourage sustainability.  Support Local First Indiana by becoming a member, attending an event, telling your neighbors, or simply following us on Facebook or Twitter!

 Limitations of the study:

The authors of the study highlight the limitations of their data.  Cities are ranked by MSA, not by city, which usually expand “community” beyond what we typically think of.  Data do not include grocery stores or automotive retailers (including gas stations).  The complexity of the data also mean that discerning what businesses should be considered local and independent can be difficult when looking at the entire nation.

 I follow the work of Civic Economics because they are the analytical brains behind many studies that show the impact of local, independent on their communities.  Civic Economics is also looking to localize this study and examine city- and county-level data for interested communities.  Let us know if you’d be like to know more.

 If you’d like to see what a town of a similar population, ranked #2, with an Indie index of 139.5 looks like, join Local First Indiana in Bellingham, Washington this June for the 9^th Annual BALLE Business Conference!

 By Martin Sorge, Local First Indiana Resource and Technology Coordinator