Retail’s economic impact
Shopping is an almost addicting activity for some, browsing for the latest fashions or gadgets. It’s a reason to get out of the house on the weekend and pick up some essential items.
In addition to serving the needs of the local community and nearby towns, retail is also becoming more of a dominant financial factor in many cities throughout the Northern Great Plains. A number of communities in the region even use retail sales as an indicator of economic growth.
Economic development officials in Pierre, SD, consider attracting retail growth to be a key part of the community’s growth plans.
“Pierre is not historically a large manufacturing area, but we have tourism,” says Jim Protexter, executive director of the Pierre Economic Development Corporation. “We have found that we need to have some more retail offerings to bring people in and make it attractive to them. For Pierre and a growing number of communities, we look at retail as part of our economic development strategy.”
Expanded retail offerings mean increased sales tax collections for communities, although a limited amount of the revenue generated by national chain franchises stay in the local economy. More shopping options also increase the quality of living for local residents and make the area more enticing for job seekers considering relocating to the community for a job.
Smaller communities are not usually thought of hotbeds for retail growth, but the importance of the addition of a couple new stores or restaurants can have a profound impact on a smaller town.
