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Is San Francisco's Chain Store Research Bogus?

Photo via <a href="http://www.ilsr.org/">Institute for Local Self-Reliance</a>
Photo via Institute for Local Self-Reliance

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A recent study found that stringent rules against allowing chain stores into San Francisco are bad for the local economy. But the study, performed by the city's Office of Economic Analysis, is drawing criticism in an opinion article published in the San Francisco Bay Guardian. According to the author, Stacey Mitchell, the research is "riddled with data problems so significant as to nullify its conclusions."

Mitchell complains that the study included data from car dealerships, which are independently owned and skew the results. She also says conclusions about the recirculation of money resulting from chain and local stores are flawed. The study found that lower prices from larger chains allow for local, household income growth, but Mitchell says it's the smaller stores that keep money local. Clearly, the formula retail conversation is far from black and white.
· Bogus chain store study ignores small biz benefits [San Francisco Bay Guardian]
· What the Official Numbers are Saying About Formula Retail [Racked SF]
· Are Formula Retail Regulations Holding the Mission Back? [Racked SF]