retail market analysis and retail economic development plan

167 Pages·2013·24.29 MB·English

RETAIL MARKET ANALYSIS AND
RETAIL ECONOMIC DEVELOPMENT PLAN
Melissa, Texas
Prepared for
City of Melissa
August 2013
CONTENTS
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Retail Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Retail Trade Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Retail Outlook Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Psychographic Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Tapestry Segmentation Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Dominant Tapestry Segments and LifeMode Groups Map . . . . . . 25
Top Tapestry Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Tapestry LifeMode Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Tapestry Segmentation LifeMode Group Descriptions . . . . . . . . . 36
Gap/Opportunity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Utilizing the Retail Gap Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Retail Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Leakage Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Surplus Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Workplace Population and Employment Summary . . . . . . . . . . . . . . . . . 49
Retailer Targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Existing Retailers Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Retailer Match List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Sample Feasibility Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Developer Targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Developer Recruitment List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Sample Developer Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Community Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
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CONTENTS
Radial Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
3-Mile Radial Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
3-Mile Radial Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
5-Mile Radial Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
5-Mile Radial Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10-Mile Radial Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
10-Mile Radial Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Drive-Time Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
5-Minute Drivetime Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
5-Minute Drivetime Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
10-Minute Drivetime Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
10-Minute Drivetime Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
15-Minute Drivetime Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
15-Minute Drivetime Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
SIC Code Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
About The Retail Coach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
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EXECUTIVE SUMMARY
Melissa, Texas
Overview Melissa Retail Trade Area
In January of 2013, the City of Melissa, Texas funded a Retail Economic Develop- A retail trade area is defined as the largest distance consumers are willing to travel
ment Plan, which was conducted and completed by The Retail Coach, LLC. The in- to purchase goods and services. The size of Melissa’s retail trade area depends on
tent of this strategy was to provide a better understanding of Melissa’s retail sector the variety of goods and services offered in Melissa and its proximity to competing
in order to improve opportunities for existing retailers and to provide a foundation retail.
for attracting new developers, retailers, and restaurants to Melissa. The study in-
cluded the following phases: The exterior boundaries of the trade area were determined by personally driving
the area road systems, cataloging area retailers and restaurants, interviews with
• Market and Locational Intelligence community and governmental leadership, and interviews with retailers and restau-
• Demand Assessment rants in Melissa and other local communities.
• Retail Strategies
• Developer Strategies There are three primary ways of determining a retail trade area: concentric circles or
• Marketing Strategies radials, drive-time analysis and the retailer defined method, which includes personal
• Retail Action Plan inspection and analysis of the subject area or region. The Retail Coach has provided
• Retail Coaching all three methods for Melissa, but recommends utilizing the retailer defined method
in discussions with retailer and developers.
As a part of our extensive on-the-ground approach to understanding retail markets
and their potential, TRC met with local stakeholders, chosen by the community, The population for Melissa’s Retail Trade Area was determined to be approximately
for a variety of reasons. Stakeholder’s meetings are designed for local citizens and 38,226.
interested parties to offer their perceptions, ideas, and thoughts on local issues that
affect the retail health of the community. These meetings help The Retail Coach to
There are three primary ways to determine a Retail Trade Area: concentric
better understand the community and identify potential opportunities.
circles or radials, drive-times or retailer-defined trade areas .
Throughout the seven-month process, The Retail Coach team members made five Traditionally, Retail Trade Areas were determined by drawing concentric circles
multi-day trips to the community. These trips included on the ground research in around a community or retail location . However, the limitation of concentric
the community and competing communities, a marketing photo shoot, and stake- circles for Retail Trade Area analysis is that they do not account for physical
holder/city staff meetings. geography, such as lakes, rivers, mountains, oceans and freeways, or human
behavior . Such factors influence how and why a consumer shops .
The City of Melissa has taken a proactive approach in retail recruitment and reten- Retail Trade Areas are often determined by the amount of time it takes to
tion with this project. Due to the high number of fast-growing communities in the drive to a community or retail location . A drive-time trade area defines the
DFW Metroplex, The Retail Coach recommends that Melissa continue this aggres- surrounding geography of a community or location whose residents can
sive strategy to help ensure a competitive edge over surrounding and competing reach that “site” within a certain amount of time . A drive-time trade area
communities. will always be irregularly shaped because of the layout of road systems,
differences in speed limits on roads/freeways and geographic barriers .
The Retail Coach uses a retailer-defined methodology that involves spending
a significant amount of time studying a community’s retailers to determine
where their customers live .
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EXECUTIVE SUMMARY
Melissa, Texas
Demographic Profile
Below is a summary demographic comparison of Melissa and its Retail Trade Area:
Melissa RTA

Population
2013 Estimate 6,718 38,226
Projected Growth (2013-2018) 16.91% 11.35%

Race Classification
White 83.63% 83.27%
Black/African American 5.62% 6.34%
Other 10.75% 10.39%
Hispanic/Latino 14.53% 15.59%

Income
Average Household $88,337 $74,624
Median Household $70,533 $60,118
Per Capita (2012) $33,390 $25,120

Median Age 33.5 35.3
Average Age 33.6 35.5

Households Melissa, Texas | Retail Trade Area Map
2013 Estimate 1,723 12,438
Projected Growth (2013-2018) 16.66% 10.81%

Strategic Tip
Associates Degree or Higher 42.65% 31.55%
Melissa should be marketed to retailers as a Retail Trade Area with a population
of 38,226, rather than a community with a population of 6,718.
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EXECUTIVE SUMMARY
Melissa, Texas
Psychographic Profile
The top lifestyle segments for Melissa’s Retail Trade Area are:
26. Midland Crowd - 45.2% 17. Green Acres - 10.9%
Household/Median Age Married-couple families/37.2 Household/Median Age Married-couple families/41.0
Median Household Income $50,096 Median Household Income $63,430
Employment Skilled, professional, management Employment Professional, management, skilled
Education HS graduate, some college Education Some college
Housing/Median Home Value Single family, mobile home/$121,782 Housing/Median Home Value Single Family/$179,073
Race/Ethnicity White Race/Ethnicity White
Lifestyle Own pets; go hunting and fishing Lifestyle Do gardening; attend country music shows

12. Up and Coming Families - 17.9% 4. Boomburbs - 6.3%
Household/Median Age Married couples with kids/31.9 Household/Median Age Married couples with kids/33.8
Median Household Income $76,135 Median Household Income $110,681
Employment Professional, management Employment Professional, management
Education Some college, bachelor, graduate degree Education Some college, bachelor, graduate degree
Housing/Median Home Value Single family/$175,637 Housing/Median Home Value Single family/$282,689
Race/Ethnicity White Race/Ethnicity White
Lifestyle Eat at Chic-fil-A; own a dog Lifestyle Shop online; visit Disney World, FLA

19. Milk and Cookies - 11.6%
Household/Median Age Married couples with kids/33.8
Median Household Income $64,880
Psychographics is the analysis of behavioral patterns of residents within a specific
Employment Professional, management, skilled
area, such as a Retail Trade Area . Each segment will have an associated percentage
Education Some college
that represents the number of households within the study area that identify with
Housing/Median Home Value Single family/$128,801
that segment . These segments represent various demographic traits, spending
Race/Ethnicity White
patterns, lifestyle characteristics and consumer activity choices . The larger
Lifestyle Fast food, drive-in restaurants; buys chil-
percentages for a segment indicate study area residents’ propensity to represent
dren’s toys and games the segment’s behavioral patterns .
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EXECUTIVE SUMMARY
Melissa, Texas
Retail Gap Analysis
The top retail segments exhibiting leakages within Melissa are:
551 New and Used Car Dealers ($71,375,880)
Gap = Opportunity
5812 Eating Places ($63,207,970)
541 Grocery Stores ($58,301,180) While the report may be titled a “Gap” or “Leakage” Analysis, it is effectively an
53 General Merchandise Stores ($50,962,690) Opportunity Analysis . This “gap” is essentially the difference between a community’s
573 Radio, TV, and Computer Stores ($29,984,320) estimated actual sales and its estimated potential sales for a study area (most often
5999 Miscellaneous Retail Stores, NEC ($17,939,990) an identified Retail Trade Area) based on a per capita spending average per retail
553 Auto and Home Supply Stores ($17,090,900) sector for the state . Rather than being viewed as a listing of losses for the community,
552 Used Car Dealers ($12,972,240) it should be viewed as a more effective way to identify those sectors (for example,
Grocery Stores or Eating Places) which have the greatest potential for retail capture
591 Drug Stores and Proprietary ($12,434,470)
within the city .
571 Home Furniture and Furnishing ($12,400,810)
521 Lumber and Other Building Materials ($10,150,880)
525 Hardware Stores ($8,015,819)
596 Non-store Retailers ($4,531,953)
526 Retail Nurseries and Garden ($4,489,266)
523 Paint, Glass and Wallpaper ($4,108,154)
559 Automotive Dealers, NEC ($3,386,654)
5943 Stationery Stores ($3,304,060)
549 Miscellaneous Food Stores ($3,077,286)
566 Shoe Stores ($2,940,518)
572 Household Appliance Stores ($2,729,848)
593 Used Merchandise Stores ($2,623,610)
565 Family Clothing Stores ($2,546,435)
556 Recreational Vehicle Dealers ($2,340,198)
562 Women’s Clothing Stores ($2,225,750)
5941 Sporting Goods, Bicycle and Gun Stores ($2,123,615)
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EXECUTIVE SUMMARY
Melissa, Texas
Retailer Match List
The following retailers were identified as top targets for
Melissa’s retail recruitment and marketing effort:
Ace Hardware Kroger
Aldi Lowes
Anytime Fitness McDonald’s
Applebees Neighborhood Market
Buc-ee’s O’Reilly Auto Parts
Burger King Papa John’s
CVS Papa Murphy’s
Chicken Express Pizza Inn
Dairy Queen Radio Shack
Dollar General Taco Bell
Dominos Pizza Tom Thumb
Dunkin Donuts United Supermarkets
Family Dollar Walgreens
HEB Wal-mart
Home Depot Whataburger
Jack In The Box
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