presented by:

Jill Clark, The Ohio State University;

Greg Davis, The Ohio State University;

Ryan Pesch, University of Minnesota;

Bill Ryan, University of Wisconsin; and

Bruce Schwartau, University of Minnesota

presented Wednesday, March 21, 2012 (1:00 PM - ET)

NCRCRD Webinar

Community Retail Analysis Techniques

Funding - North Central Regional Center for Rural Development (NCRCRD) Seed Grant

University of Minnesota Extension• Ryan Pesch• Bruce Schwartau

Ohio State University Extension• Greg Davis• Jill Clark

University of Wisconsin Extension• Bill Ryan

A Multi-State Effort

Building on the expertise and foundational work of our colleagues: Todd Barman, Laura Brown, Michael Darger, Jim Engle, Kevin Graeme, Elena Irwin, Matt Kures, Neil Linscheid, JD Milburn, Bill Pinkovitz, and Greg Wise. Support provided by the North Central Regional Center for Rural Development and the Wisconsin Main Street Program

Poll #1

Situation

Poll #2

Purpose of a Retail Analysis

1. To support business development with reliable data that accurately describes the market.

2. To research issues specific to your particular community.

3. To provide a foundation for developing economic development strategies for a business district.

http://fyi.uwex.edu/downtown-market-analysis/

I. Understanding the Market

Trade Area Analysis

Factors to Consider:• Population• Proximity of competing

centers• Local mix of businesses• Local destination attractions• Traffic patterns

Tools to Use:• Focus groups• Mapping using geographic

features (distances, highways, drive-times, etc.)

• Mapping using customer addresses and zip codes

A trade area is the geographic area from which a community generates the majority of its customers. A community may have both a convenience and a destination trade area.

Poll #3

Establishing Trade Area(s) Using GIS

Establishing Trade Area(s) Using GIS

I. Understanding the Market

Demographic & Lifestyle Analysis

Demographic Data:• Population and households• Housing ownership and value• Income• Age, gender and ethnicity• Educational attainment• Employment

Lifestyle Data:• Households in a trade area

are segmented into unique clusters that describe their lifestyle, characteristics

• Examine spending propensity for a variety of goods and services

Demographic and Lifestyle data can provide insight into local consumer buying behaviors and preferences. Comparison are made to state and national averages.

Poll #4

Analysis of Trade Area(s) Using Tables and Maps

I. Understanding the Market

Local & Regional Economic Analysis

• Human Capital – Knowledge and skills of the labor force• Research and Education – Drive innovation and train the labor

force• Natural Assets – Quantity and quality • Industry Structure - Differentiation, Diversification and

Convergence• Physical and Information Infrastructure – Allow for information

sharing• Social Capital – Professional relationships and networks• Others – Financial capital, regulatory environment, etc.

Economic data can help describe downtown’s position in the local and regional economy and identify factors that are of competitive advantage.

I. Understanding the Market

Local & Regional Economic Analysis

• Industry Concentrations and Employers• Labor Force and Employment Levels• Entrepreneurial Activity• Business Climate Analysis• Real Estate Activity• Transportation Patterns• Institutions• Tourism and Community Attractions• Quality of Life Measures

This part of the toolbox includes sections on analyzing:

Poll #5

Analyzing Economic Data Using GIS

I. Understanding the Market

Business Owners Survey

Purpose of Questions:• provides information on

business needs to support retention and expansion efforts.

• Allows business community to share ideas for new economic activity in the community.

Possible Methods to Use:• Written Survey• Telephone Survey• Web-Based Survey• Business Visitations• Focus Groups

A business owner survey invites business owners to share their perspectives regarding the current and future economic health of the business district.

Poll #6

Provides Information on:• Who they are and how to

reach them.• Where, when and why they

shop for various goods and services

• How downtown can be improved in terms of retail as well as other uses.

Possible Methods to Use:• Written Survey• Telephone Survey• Web-Based Survey• Social Media• Intercept Surveys• Focus Groups

A survey can help you understand the attitudes and shopping behaviors and preferences of current and potential consumers specific to your trade area.

I. Understanding the Market

Consumer Survey

Surveys – Download Examples and Templates

Toolbox includes:• Question-bank to help you

determine what questions are most relevant to your analysis

• Downloadable survey templates that can be customized for your community.

• Examples of surveys that have been customized and implemented in various cites.

Structure of Sessions:• 7-10 people with common characteristics (perhaps same

market segment)• Minimum of three groups• Conducted by a trained facilitator• Non-threatening environment• Used to understand human behavior• Not used to collect facts

A carefully planned discussion to collect qualitative data about feelings and perceptions regarding the downtown area.

I. Understanding the Market

Focus Groups

Identifying Comparable Places:

• Similar in Demographics• Similar in Location• Similar in Urban and Rural

Characteristics • Similar Function

Identifying Successful Districts:

• Knowledge from existing study group members

• Recognized downtown successes

• Research websites of downtown or Main Street organizations

Examining Similar Cities and their Business Districts is useful in identifying potential business opportunities and economic development strategies.

I. Understanding the Market

Peer City Comparisons

Includes tools for estimating demand and supply for selected business categories. Business opportunities are examined in terms of quantitative and qualitative factors

Realistic Retail/Service

Business Opportunities

DemandSupplyReasonable

ness Check

II. Analysis of Opportunities by Sector

Examining Retail Opportunities

Retail Analysis Tool: Gap Analysis Calculator

Poll #7

/

Retail Analysis Tool: Business Mix Analysis

Comparison with Wisconsin cities/villages with 5,000-10,000 Pop. (Average of 45 Downtowns)

NAICS Description Number Sales (000's)Full-service restaurants 7.9 5,378 Beauty salons 6.7 1,451 Drinking places (alcoholic beverages) 3.9 1,224 Automotive mechanical & electrical repair 2.2 854 Gift, novelty, & souvenir stores 2.0 729 Other amusement (bowling, golf, fitness) 1.9 791 Used merchandise stores 1.8 810 Gasoline stations 1.7 5,527 Appliance, television, & other electronics stores 1.7 3,322 Grocery stores 1.6 13,973 Barber shops 1.3 148 Specialized building material dealers 1.3 2,240 Jewelry stores 1.1 830 Florists 1.1 413 Automotive parts, accessories, & tire stores 1.1 1,550

Retail Analysis Tool: Pull Factors

Pull Factors measure the

strength of a trade area.

A pull factor bigger than 1.00 means the area is “pulling” in customers.

Pull Factor =City Sales Per Capita

State Sales Per Capita

• Case studies of downtown retail and service businesses that:

build on downtown’s character and

offer products and services not found in big box stores.

• Searchable by

Type of businessSize of community

Retail Analysis Tool: Innovative Downtown Businesses Clearinghouse

Includes techniques for estimating demand and supply for various downtown uses. To the extent possible, opportunities are examined in terms of quantitative and qualitative factors

II. Analysis of Opportunities by Sector

Analysis of Other Property Uses

• Restaurants• Arts and Entertainment• Housing• Office Space• Lodging• Light Industrial

• Niche Development• Space Usage• Image, Branding, Marketing• Business Retention/Expansion• Business Recruitment• Entrepreneurship• Benchmarking

Market analysis findings can provide a solid and objective foundation for launching economic development strategies for your district.

III. Putting Your Research to work

Using Your Market Analysis

For More Information:

http://www.uwex.edu/ces/cced/downtowns/dma/index.cfm

Ohio: Jill Clark, clark.1099@osu.edu

Greg Davis, davis.1081@osu.edu

Minnesota: Ryan Pesch, pesch@umn.edu

Bruce Schwartau, bwschwar@umn.edu

Wisconsin: Bill Ryan, bill.ryan@uwex.edu