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Elena Irwin |
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Assistant Professor and State Specialist |
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Community and Regional Economics |
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Identify local market trends in retail |
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Understand local market opportunities |
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Provide input to economic development strategies |
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Not a detailed plan of action |
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Needs to be integrated with larger economic
development program |
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Community marketing team |
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Initiates and coordinates program |
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Provides local knowledge and experience |
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Assists with data collection and analysis |
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Technical advisor |
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Performs the majority of the market analysis |
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Facilitates team discussions |
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Market Comparison |
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Demographic Trends |
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Retail Sales Leakage/Surplus |
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Customer Survey |
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What is the local trade area? |
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A trade area is the geographic area that
contains most of the customers of a local shopping district. |
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What are the competing trade areas? |
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How do the mix of businesses, the location, and
the customer base compare? |
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What are the basic population characteristics of
the trade area and the competing trade areas? |
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How have these characteristics changed over
time? |
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What are the current retail sales per household? |
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What are the retail sales trends over time? |
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What are the retail sales potentials based on
current population and income levels? |
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How do the potential retail sales compare to the
actual retail sales? |
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Surplus: Actual sales are greater than potential
sales. |
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Leakage: Potential sales are greater than actual
sales. |
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Place of residence |
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Demographic/economic information |
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Shopping habits |
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Where and when does individual shop for various
goods? |
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Perceptions of local trade area as a place to
shop |
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Survey methods: |
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Intercept survey (e.g. on the street or in the
mall) |
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Telephone |
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Mail |
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Focus group |
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What are the strengths and weaknesses of the
local trade area in comparison to competing trade areas? |
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What are the potential retail market
opportunities for the local trade area based on: |
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Current business mix and environment |
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Retail sales analysis |
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Demographic trends |
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Customer habits |
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Market analysis report |
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Summarizes market analysis |
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Outlines market opportunities identified by the
research team |
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Provides a guide for future steps |
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“Step-by-Step Market Analysis. A Workbook for
Downtown Business Development,” published by the National MainStreet
Center. |
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For St. Paris, OH and surrounding trade areas |
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1998 retail sales data |
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Comparing St. Paris trade area with 14 competing
trade areas |
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Trade area boundaries determined by population
pattern and block group boundaries |
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Regional focus |
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= Actual Sales - Potential Sales |
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Potential sales = a estimate of sales that could
be achieved in retail area based on population and per capita income level. |
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If actual sales are more than potential sales,
this could mean: |
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People from outside the trade area are coming
into the community to shop; or |
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People within the trade area are spending more
than the average consumer; or |
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Trade area is smaller than originally assumed. |
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If actual sales are less than potential sales,
this could mean: |
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The trade area is losing customers to other
trade areas; or |
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People within the trade area are spending less
than the average consumer; or |
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Trade area is larger than originally assumed. |
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Notes