Cloverdale Commercial Development Survey Analysis
In July 2014 the executive of the Cloverdale Community League conducted an online
survey to assess neighborhood support for local commercial development. The survey
questions are posted here and the results are posted here. The results were shared with
City of Edmonton officials responsible for the Corner Store Pilot Program, which
supports commercial revitalization in mature neighborhoods. Below is their preliminary
analysis of the data and the market potential of the two most-supported types of
development, a small grocer and restaurant.
Analysis of residents survey comments
Suggestions for other businesses:
Eleven comments suggested a pub/bar
Five suggest a small grocery with produce
Four suggested a hair salon
Four suggested a ice cream store
Four suggest none.
Four suggest a pharmacist/drugstore
Two suggest a deli
Three suggested a liquor store
Three suggest a bookstore
Two suggests a bike shop
Two suggest a flower shop
Two suggest an Art Gallery
Two suggest a Massage therapy center
Two suggests a bike shop
One suggests a dry cleaners
One suggests a canoe/kayak rentals place
One suggest a scooter rental shop
Negative comments:
Parking requirements of new business seem to be highest on Cloverdale’s list of concerns. Of the
93 comments about Negative impacts associated with local commercial
Development 56 dealt with parking.
32 comments mention increased traffic.
10 comments state that there are no negative aspects
1 not enough consultation from The City of Edmonton
6 state that chain stores would detracted from the uniqueness of the neighborhood
3 comments mention business bringing in undesirable people
4 mention increased crime rate
2 two mention loud bars
Positive comments:
36 comments mention convenience as a positive impact
28 comments mention “walkability” or related ideas
4 say none
6 mention having to drive less not having to drive to get food
31 mention an increased sense of community in the neighborhood
3 mention increased property values
Analysis of the viability of a small grocer and neighborhood restaurant
The average Cloverdale household spends $3,1541 on restaurants a year and the total
expenditure of all Cloverdale residents on restaurant food is equal to $1.57 Million dollars (data
from the industrial land site locator).
So if a neighbourhood restaurant got 15% of total Cloverdale restaurant expenditures it would
total $235,000; the average gross revenue for a restaurant is $1.5 million 2. A restaurant in
Cloverdale would have to attract at least three times as much business from out side the
neighbourhood than inside in order to maintain this average. With the new LRT and the increased
amount of foot traffic in the area a restaurant in Cloverdale may end up being a viable business
opportunity. A more upscale restaurant that has the potential to bring people from outside of the
neighborhood would most likely work better than a chain restaurant at bringing in customers from
outside of the neighborhood. It is also possible that a restaurant could receive a greater share of
resident’s restaurant budget, but 15% would be a reasonable guess.
The average household in Cloverdale spends $89223 annually on food purchased from stores
from stores and Cloverdale spends $4.46 Million dollars annually on food from stores. The
average household in Cloverdale also spends an average of $181 on cigarettes annually and
Cloverdale as a neighbourhood spends $90,000 on cigarettes.
So if we assume that a convince store would receive 7% of total food expenditures they would
generate $312,000 in revenue local residents. In addition if they received 50% of total cigarette
revenue then this would generate an additional $45,000 in additional revenue, bringing the total
income from the neighbourhood to 357,200. The average gross revenue for a convenience store
a bit less than a million dollars a year 4. A Cloverdale convenience store would need significant
amount of out of neighbourhood traffic to be viable. If the store is able to get a significant amount
of drive by, out of neighborhood, traffic then it may be a viable business model. If they offer a
larger array of products, such a produce, they may be able to capture a larger market share and
rely less on out of neighborhood traffic. Additionally a specially, or ethnic, grocer may be a better
fit as they may be able to draw customers from outside the neighborhood, while at the same time
servicing the community.
1
http://www.edmontonindustrialland.ca/
https://canadianrestaurateur.wordpress.com/category/cost-control/direct-operating-costs/
3
http://www.edmontonindustrialland.ca/
4
http://ontariocstores.ca/wp-content/uploads/2013/03/CCSA-SOI-2012.pdf
2