Community Retail Analysis Techniques
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
Funding - North Central Regional Center for Rural Development (NCRCRD) Seed Grant
A Multi-State Effort
University of Minnesota Extension
• Ryan Pesch
• Bruce Schwartau
Ohio State University Extension
• Greg Davis
• Jill Clark
University of Wisconsin Extension
• Bill Ryan
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
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.
Factors to Consider:
Tools to Use:
• Population
• Focus groups
• Proximity of competing
• Mapping using geographic
centers
• Local mix of businesses
• Local destination attractions
• Traffic patterns
features (distances,
highways, drive-times, etc.)
• Mapping using customer
addresses and zip codes
Poll #3
Establishing Trade Area(s) Using GIS
Establishing Trade Area(s) Using GIS
I. Understanding the Market
Demographic & Lifestyle Analysis
Demographic and Lifestyle data can provide insight into local
consumer buying behaviors and preferences. Comparison are
made to state and national averages.
Demographic Data:
Lifestyle Data:
• Population and households
• Households in a trade area
• Housing ownership and value
are segmented into unique
clusters that describe their
lifestyle, characteristics
• Examine spending propensity
for a variety of goods and
services
• Income
• Age, gender and ethnicity
• Educational attainment
• Employment
Poll #4
Analysis of Trade Area(s) Using Tables and Maps
I. Understanding the Market
Local & Regional Economic Analysis
Economic data can help describe downtown’s position in the
local and regional economy and identify factors that are of
competitive advantage.
• 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.
I. Understanding the Market
Local & Regional Economic Analysis
This part of the toolbox includes sections on analyzing:
• 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
Poll #5
Analyzing Economic Data Using GIS
I. Understanding the Market
Business Owners Survey
A business owner survey invites business owners to share their
perspectives regarding the current and future economic health
of the business district.
Purpose of Questions:
Possible Methods to Use:
• provides information on
• Written Survey
business needs to support
retention and expansion
efforts.
• Allows business community
to share ideas for new
economic activity in the
community.
• Telephone Survey
• Web-Based Survey
• Business Visitations
• Focus Groups
Poll #6
I. Understanding the Market
Consumer Survey
A survey can help you understand the attitudes and shopping
behaviors and preferences of current and potential consumers
specific to your trade area.
Provides Information on:
Possible Methods to Use:
• Who they are and how to
• Written Survey
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.
• Telephone Survey
• Web-Based Survey
• Social Media
• Intercept Surveys
• Focus Groups
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.
I. Understanding the Market
Focus Groups
A carefully planned discussion to collect qualitative data about
feelings and perceptions regarding the downtown area.
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
I. Understanding the Market
Peer City Comparisons
Examining Similar Cities and their Business Districts is useful in
identifying potential business opportunities and economic
development strategies.
Identifying Comparable
Places:
Identifying Successful
Districts:
• Similar in Demographics
• Knowledge from existing
• Similar in Location
study group members
• Recognized downtown
successes
• Research websites of
downtown or Main Street
organizations
• Similar in Urban and Rural
Characteristics
• Similar Function
II. Analysis of Opportunities by Sector
Examining Retail Opportunities
Includes tools for estimating demand and supply for selected
business categories. Business opportunities are examined in
terms of quantitative and qualitative factors
Supply
Demand
Realistic
Retail/Service
Business
Opportunities
Reasonableness
Check
Retail Analysis Tool: Gap Analysis Calculator
Poll #7
Retail Analysis Tool: Business Mix Analysis
NAICS Description
Full-service restaurants
Beauty salons
Drinking places (alcoholic beverages)
Automotive mechanical & electrical repair
Gift, novelty, & souvenir stores
Other amusement (bowling, golf, fitness)
Used merchandise stores
Gasoline stations
Appliance, television, & other electronics stores
Grocery stores
Barber shops
Specialized building material dealers
Jewelry stores
Florists
Automotive parts, accessories, & tire stores
Number
7.9
6.7
3.9
2.2
2.0
1.9
1.8
1.7
1.7
1.6
1.3
1.3
1.1
1.1
1.1
Sales (000's)
5,378
1,451
1,224
854
729
791
810
5,527
3,322
13,973
148
2,240
830
413
1,550
/
Comparison with Wisconsin cities/villages with 5,000-10,000
Pop. (Average of 45 Downtowns)
Retail Analysis Tool: Pull Factors
Pull Factors measure the
strength of a trade area.
Pull Factor =
City Sales Per Capita
State Sales Per Capita
A pull factor bigger than 1.00 means the
area is “pulling” in customers.
Retail Analysis Tool: Innovative Downtown Businesses Clearinghouse
• 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 business
 Size of community
II. Analysis of Opportunities by Sector
Analysis of Other Property Uses
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
• Restaurants
• Arts and Entertainment
• Housing
• Office Space
• Lodging
• Light Industrial
III. Putting Your Research to work
Using Your Market Analysis
Market analysis findings can provide a solid and objective
foundation for launching economic development strategies for
your district.
• Niche Development
• Space Usage
• Image, Branding, Marketing
• Business Retention/Expansion
• Business Recruitment
• Entrepreneurship
• Benchmarking
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