presented by: jill clark, the ohio state university; greg davis, the ohio state university;
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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
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