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► Limitations and Disclaimers

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Retail market analyses, their components (such as retail sales gap analyses) and derivative business development plans provide important guidance on how a commercial area should, theoretically, be able to perform and on the sales levels businesses should be able to achieve. However, a number of factors affect the actual performance of businesses and commercial areas, including the skills of the business operator, level of business capitalization, the quality of the physical environment, changes in overall economic conditions, the effectiveness of business and district marketing programs, and many other factors. The information in this report is intended to provide a foundation of information for making business development decisions, but it does not and cannot ensure business success. As is true of all demographic, economic and market studies, our analysis’ reliability is limited to the reliability and quality of the data available. Our research assumes that all data made available by and procured from federal, state, county, city, primary and third party sources is accurate and reliable.

Street Area.

Because market conditions change rapidly and sometimes without warning, the information and opinions expressed here represent a snapshot in time and cannot predict or gauge future changes or results.


Downtown Saline has enjoyed a relatively stable business base despite the economic downturn.


Downtown Saline is a stage for community festivals and special events that celebrate the community’s heritage, and the small town, hometown qualities of Saline.


Downtown Saline Drive Time Market

Fast Facts Population

20 Min

7,307

23,683

279,068

2010 Census

8,244

29,348

292,959

2012 Estimate

8,313

29,416

295,882

2017 Projection

8,469

29,690

300,850

1.9%

0.9%

1.7%

Households

5 Min

10 Min

20 Min

2000 Census

2,899

8,518

109,972

2010 Census

3,497

11,049

118,104

2012 Estimate

3,533

11,089

119,161

2017 Projection

3,618

11,244

121,657

2.4%

1.4%

2.1%

Change 2012—2017 State Income

10 Min

2000 Census

Change 2012—2017

5 Min

2012

2017

+%

Median HH Income

5 Min

10 Min

20 Min

Median HH

$44.9K

$52.3K

16.3%

2012 Estimate

$59,767

$76,466

$51,731

Average HH

$60.1K

$66.6K

10.8%

2017 Projection

$66,445

$80,374

$57,927

Per Capita

$24.0K

$26.8K

11.5%

11.2%

5.1%

12.0%

Note: The complete Downtown Saline Market Profile is available as a supplemental document to this report.

Change 2012—2017 Source: Esri Market Profile


Top Consumer Lifestyle Segments Top Three Tapestry Segments | Ten-minute Drive Time Area | Esri 2012

Boomburbs | 23.2% of 10 Minute Drive Time Households The Boomburbs market includes one of the highest concentrations of two-income households. Residents are well educated: more than 50 percent of the population aged 25 years and older hold a bachelor’s or graduate degree. They work primarily in management, professional, and sales occupations. The median household income is $104,395, more than double that of the US median. More than half of these households receive additional income from interest, dividends, and rental property. Lifestyle Traits

The following tables show concentrations of the three most prevalent Tapestry household segments found within the Downtown Saline 5, 10 and 20-minute drive time areas.

1.

Shop online

2.

Bank online

3.

Visit Disney World (FL)

4.

Listen to sports on radio

5.

Own/Lease SUV

Sophisticated Squires | 15.1% of 10 Minute Drive Time

5 Minute Drive Time Households

Count

Pct.

06. Sophisticated Squires

1,166

33.0%

14. Prosperous Empty Nesters

883

25.0%

28. Aspiring Young Families

559

15.8%

Count/Pct. of 5 Minute Drive Time

2,608

73.8%

1.

Home improvement

10 Minute Drive Time Households

Count

Pct.

2.

Hold large life insurance policies

23.2%

3.

Landscaping

4.

Listen to classic hits radio

5.

Own 3+ vehicles

04. Boomburbs

2,570

06. Sophisticated Squires

1,676

15.1%

02. Suburban Splendor

1,285

11.6%

Count/Pct. of 10 Minute Drive Time

5,331

49.9%

20 Minute Drive Time Households

Count

Pct.

22. Metropolitans

13,195

11.1%

63. Dorms to Diplomas

11,869

10.0%

39. Young and Restless

7,945

6.7%

Count/Pct. of 20 Minute Drive Time 33,009

27.8%

Information on Esri Tapestry methodology and applications, along with descriptions for Tapestry’s 65 segments, are available from the Esri website and are contained in the Esri Community Tapestry Segmentation Handbook available for download at http://www.esri.com/ library/brochures/pdfs/tapestry-segmentation.pdf.

Households

These residents are educated; more than one-third of the population aged 25 years or older holds a bachelor’s or graduate degree; another third has attended college. Occupations range from management to unskilled labor positions. Most work in whitecollar jobs. The median household income is $83,079. Nearly 90 percent of the households earn wage or salary income; nearly half supplement their wages and salaries with interest, dividends, or rental income. Lifestyle Traits

Suburban Splendor | 11.6% of 10 Minute Drive Time

Households

These successful suburbanites are the epitome of upward mobility, just a couple of rungs below Top Rung in affluence. Suburban Splendor residents have a median household income of $115,396. Labor force participation rates are high for both men and women; many households are two income. Most employed residents work in management, professional positions, and sales. They supplement their salaries with income from interest, dividends, and rental property at a rate much higher than the national level. Well educated, more than half the population aged 25 years and older hold a bachelor’s or graduate degree. Lifestyle Traits 1. 2. 3. 4. 5.

Gardening Hold large life insurance policies Stay at Hilton hotels Listen to all-news radio Read travel, sports magazines


Retail Sales Drive Time Market ($MM) 5 Min

10 Min

$85.3

$194.7

20 Min $2,894.4

Source: Esri Retail MarketPlace Report 2012 Totals shown for all Retail categories (NAICS 441—454) and Foodservice and Drinking Places (NAICS 722)

Retail Pull Categories with some of the highest and lowest pull factors—an indication of relative strength or possible opportunities in the market—include:

Sales Surplus & Leakage ($MM)

5 Minutes

10 Minutes

20 Minutes

Surplus/ (Leakage)

Surplus/ (Leakage)

Surplus/ (Leakage)

Total Retail Trade and Food & Drink (NAICS 44 – 45, 722)

($16.9)

($204.5)

($520.5)

Total Retail Trade (NAICS 44 – 45)

($18.8)

($189.6)

($542.4)

$1.9

($14.9)

$21.9

Total Food & Drink (NAICS 722)

Category/Subcategory

Factor*

Special Food Services

70.7

Used Merchandise Stores

50.3

Automobile Dealers

44.5

Other Miscellaneous Store Retailers

22.4

Beer, Wine & Liquor Stores

9.5

Full-Service Restaurants

2.9

Limited-Service Eating Places

(4.7)

Drinking Places - Alcoholic Bevs

(16.8)

Grocery Stores

(20.2)

Florists

(22.6)

Lawn & Garden Equipt. & Supply

(100.0)

Shoe Stores

(100.0)

Clothing Stores

(92.3)

Other General Merchandise Stores

(87.3)

Book, Periodical & Music Stores

(83.8)

Sporting Goods/Hobby/Musical

(82.2)

Office Supplies, Stationery & Gifts

(73.1)

Home Furnishings Stores

(67.4)

Electronics & Appliance Stores

(66.8)

Jewelry, Luggage & Leather Goods

(64.5)

* Factor shown for five minute drive time area


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Question How far is your residence located from Downtown Saline? Employee Intercept Responses

Percent

In downtown or within 2 miles

35.2%

2 to 5 miles

23.9%

5 to 10 miles

21.1%

More than 10 miles

19.7%

Source: 2013 Downtown Saline Consumer Survey. Data shown for Intercept Survey sample indicating they work in the downtown or within two miles.

Question How often do you visit Downtown Saline... Frequency—Daily or Weekly

Percent

For errands, office and servicerelated purposes?

54.5%

For eating, drinking and/or entertainment?

38.6%

To shop? Source: 2013 Downtown Saline (Online) Consumer Survey.

9.1%


Question | Consumer Survey Of the following, which two (2) media and information sources do you most rely on for Saline area news and information?

Top Consumer Survey Responses Social Media (Facebook, Twitter, etc.)

47.9%

Newspaper

37.8%

Internet Website(s)

37.5%

Other*

14.2%

Email Marketing

9.4%

Source: 2013 Downtown Saline Consumer Survey. 

“Other” includes high frequencies of Saline Post (and references); and word of mouth.

Question | Business Survey Of the following media, direct marketing and advertising resources, which three (3) are most effective for your business?

Top Business Survey Responses Internet Website(s)

55.2%

Other*

51.7%

Social Media (Facebook, Twitter, etc.)

41.4%

Email Marketing

24.1%

Source: 2013 Downtown Saline Business Survey. 

“Other” includes high frequencies of word of mouth; and referrals.


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Opportunities? Please list one or two specific types of businesses or attractions that might make you visit [Downtown Saline] more often.

Top Responses—Categorized Restaurants

Question

13.9%

Specialty Foods

8.5%

Clothing and Clothing Accessories

8.2%

Books and Music

7.3%

Limited Service Eating Places

5.7%

What type(s) of products have you purchased on the Internet within the last three months?

Drinking Places—Alcoholic Beverages

5.4%

Products

Count

Percent

Gifts, Novelties and Souvenirs

5.1%

Books

131

51.0%

Theater/Theatre

4.8%

Gifts

113

44.0%

Hobbies, Arts and Crafts

3.0%

Women’s Clothing

94

36.6%

Source: 2013 Downtown Saline Consumer Survey.

Hobbies and Crafts

59

23.0%

Sporting Goods

54

21.0%

Question

Home Furnishings

52

20.2%

Have you purchased any products on the Internet within the last three months?

Men’s Clothing

47

18.3%

Consumer Survey Responses

Percent

Beauty Supplies

41

16.0%

Yes

85.1%

Children’s Clothing

41

16.0%

No

14.9%

Flowers

41

16.0%

Source: 2013 Downtown Saline Consumer Survey.

Source: 2013 Downtown Saline Consumer Survey.


Question How does Downtown Saline compare to other places you frequently shop and do business in terms of:

Consumers Rating

A. Stronger

B. Equal

A+B

Cleanliness

45.3%

52.7%

98.0%

Attractiveness

35.3%

58.3%

93.6%

Customer Service

27.9%

60.9%

88.8%

Quality of Festivals and Events

42.5%

44.9%

87.4%

Quality of Products and Services

30.1%

52.8%

82.9%

Quality of Dining

17.1%

65.1%

82.2%

Variety of Dining

15.8%

46.2%

62.0%

Variety and Selection of Shopping

2.7%

18.7%

21.4%

Source: 2013 Downtown Saline Consumer Survey.

Question Would you place a high, moderate or low priority on possible Downtown Saline enhancement efforts to... Consumers (C) and Businesses (B) Rating as a “High Priority” Enhancement Efforts

(C)

(B)

Create incentives for new and expanding downtown businesses

57% (1)

39% (2)

Restore and preserve the downtown’s historic character

50% (2)

29% (4)

Improve the downtown’s streets, sidewalks, lighting, furnishings, green spaces, trails, etc.

41% (3)

52% (1)

Create an overall district marketing and public relations program to raise awareness and promote the district

36% (4)

33% (3)

Stage additional festivals and special events in the downtown area

28% (5)

16% (6)

Improve and/or create more housing in the downtown area

21% (6)

26% (5)

Source: 2013 Downtown Saline Consumer and Business Surveys.


Question What is the first thing that should be done to improve Downtown Saline?

Categorized Topics

Consumers

Businesses

Add/Recruit Business

38.9%

25.0%

Transportation

17.1%

16.7%

Development/Redevelopment

9.7%

8.3%

Streetscape and Public Spaces

9.3%

8.3%

Marketing and Public Relations

5.6%

0.0%

Parking

5.1%

19.4%

Business Operations/Offerings

4.6%

0.0%

Festivals and Events

3.7%

2.8%

Buildings and Appearances

3.2%

11.1%

Programs/Programming

2.3%

8.3%

Source: 2013 Downtown Saline Consumer and Business Surveys. Most frequent categorized responses shown. Multiple responses allowed in Business Survey.

Transportation-related suggestions offered by survey participants tend to revolve around the volume and speed of traffic on US Highway 12 (Michigan Avenue) and related pedestrian and safety concerns.


Question How long has your business been located in Downtown Saline?

Responses Less than 1 year

3.1%

1 to 4 years

25.0%

5 to 9 years

12.5%

10 to 20 years

25.0%

21+ years

34.4%

Source: 2013 Downtown Saline Business Survey.

Question Would you consider participating in future Downtown Saline cooperative/joint advertising or marketing programs?

Responses Yes

71.4%

No

28.6%

Source: 2013 Downtown Saline Business Survey.

Question Which of the following best describes the potential for your business to expand within the next one or two years?

Question

Responses High potential

26.7%

Would you be inclined to use any of the following Business Assistance programs and incentives?

Some potential

46.7%

Responses

Low potential

20.0%

No potential

6.7%

Source: 2013 Downtown Saline Business Survey.

Business marketing consultations

64.7%

Low-interest line of credit/payment

52.9%

Business assistance seminars

41.2%

Business management consultations

29.4%

Source: 2013 Downtown Saline Business Survey.


Question In the next year or two, do you plan to change or modify your business in any of the following ways?

Responses Increase marketing

50.0%

Expand your business

40.9%

Increase number of employees

36.4%

Start and/or complete building improvements

36.4%

Question

Expand hours of operation

31.8%

Expand services or product lines

31.8%

Of the following business seminar topics, which two would be of most interest and/or most useful to you?

Source: 2013 Downtown Saline Business Survey. Most frequent responses shown.

► ►

Responses Social Media for Small Business

56.5%

Advertising vs. Marketing—What’s the Difference?

39.1%

Finding and Keeping Customers

30.4%

Building Partnerships

26.1%

Developing an Annual Marketing Strategy

17.4%

Public Relations 101

13.0%

Media Relations 101

4.3%

Source: 2013 Downtown Saline Business Survey.

Question 

Would you be inclined to use any of the following Building Assistance programs and incentives?

Responses 

Tax credits

72.2%

Free/low-cost building improvement design services

61.1%

Low-interest building improvement loans

38.9%

Source: 2013 Downtown Saline Business Survey.


Question Which category includes your annual rent per square foot expense? If you own your building, please estimate what you believe the market rate would be for your space.

Responses Less than $6.00 per square foot

28.0%

$6.00 to $7.99 per square foot

4.0%

$8.00 to $9.99 per square foot

4.0%

$10.00 to $11.99 per square foot

24.0%

$12.00 to $14.99 per square foot

4.0%

$15.00 to $19.99 per square foot

28.0%

20.00 or more per square foot

Question

8.0%

Source: 2013 Downtown Saline Business Survey.

What is your annual sales volume per square foot?

Responses

Question

Less than $50 per square foot

11.1%

$50 to $99 per square foot

27.8%

$100 to $149 per square foot

22.2%

$150 to $199 per square foot

27.8%

$200 to $249 per square foot

0.0%

Yes

32.0%

$250 to $299 per square foot

5.6%

No

68.0%

$300 to $399 per square foot

5.6%

Source: 2013 Downtown Saline Business Survey.

$400 or more per square foot

0.0%

Source: 2013 Downtown Saline Business Survey. Not Applicable responses omitted from percentage calculations.

Does the rent amount [previously indicated] include most or all utilities?

Responses

Question Does the rent amount [previously indicated] include Triple Net fees? (Net building insurance, real estate taxes, common are maintenance, etc.)

Responses Yes

42.3%

No

57.7%

Source: 2013 Downtown Saline Business Survey.


Business types and merchandise lines that might be considered primary targets and candidates for expansion and recruitment, based on the downtown area’s existing business mix, trends in the marketplace and related findings from local input, consumer and business surveys, Esri retail data, and the sales surplus & leakage analysis performed as part of this study include:

Opportunities? Please list one or two specific types of businesses or attractions that might make you visit [Downtown Saline] more often.

Top Responses—Categorized Restaurants

13.9%

Specialty Foods

8.5%

Clothing and Clothing Accessories

8.2%

Books and Music

7.3%

Limited Service Eating Places

5.7%

Drinking Places—Alcoholic Beverages

5.4%

Gifts, Novelties and Souvenirs

5.1%

Theater/Theatre

4.8%

Hobbies, Arts and Crafts

3.0%

Source: 2013 Downtown Saline Consumer Survey.


The Saline Main Street Business and Economic Success Team should infuse local knowledge and expertise into the process of analyzing market information contained in this study to further develop profiles for business types and uses which are a good fit for Downtown Saline, and which appear to have the very best chance to succeed.


► ► ►

Office and services uses in Downtown Saline already play an important role in generating consistent traffic to support the district’s economy and sense of vitality.

Question

How often do you visit Downtown Saline for errands, office and service-related purposes? (Examples: bank, salon, dentist, doctor, chiropractor, attorney, accountant, etc.).

Top Responses—Categorized

.

Daily

15.9%

1 or 2 times a week

38.6%

Once or twice a month

19.7%

A few times a year

14.4%

Seldom or never

11.4%

Source: 2013 Downtown Saline Consumer Survey.


Potential Downtown Housing Market | Demographic Profile For Consumer Survey participants indicating interest in new or renovated Downtown Saline housing.

Age

Percent

25 to 34

6.5%

35 to 44

24.8%

45 to 54

28.3%

55 to 64

21.7%

65 or older

8.7%

Household Size

Percent

1

13.0%

2

30.4%

3

26.1%

4

21.7%

5 or more

8.7%

Household Income

Percent

Less than $35,000

2.2%

$35,000 to $49,999

10.9%

$50,000 to $74,999

15.2%

$75,000 to $99,999

19.6%

$100,000 to $149,999

32.6%

$150,000 and greater

19.5%

Source: 2013 Downtown Saline Consumer Survey.

Questions If new or renovated housing was available, would you consider living in Downtown Saline?

Responses Yes

16.7%

Maybe

19.8%

No

47.6%

I live downtown

15.9%

Would you prefer to own or rent housing in the Downtown Saline area?

Responses Own

83.0%

Rent

17.0%

What style of housing in Downtown Saline would you look for or consider?

Responses Apartment

15.6%

Loft

40.0%

Condo

42.2%

Townhouse

40.0%

Senior Housing

11.1%

Source: 2013 Downtown Saline Consumer Survey.


0

Ongoing and/or Immediate

 ►

Share information collected as part of this study process with Downtown Saline property owners and businesses to enhance awareness of conditions, trends, and potential opportunities for expansion.


0

Ongoing and/or Immediate

1

Within One Year

2 ►

Within Two Years

Remain plugged-in to planning processes for the US Highway 12 (Michigan Avenue) reconstruction project; share information with downtown businesses and work collaboratively to help businesses prepare and plan for doing business during the construction period.


3

Within Three Years

Identify and promote potential redevelopment sites and opportunities to increase density and uses in Downtown Saline. Review and refine prior plans and/or prepare redevelopment concepts and work with property owners to actively market potential infill and redevelopment sites—including “the pit”— based on Downtown Saline land use plans, potential housing demand, and business types targeted for expansion and recruitment.


Market insights and the perspectives of downtown business owners provide direction for Downtown Saline marketing and promotion strategies.

0

Ongoing and/or Immediate

Review Esri demographic and lifestyle profiles for the market and assess opportunities for events, activities and messages having special appeal for targeted market segments, with special consideration for the Boomburbs, Sophisticated Squires, Suburban Splendor and similar Esri Tapestry segments prevalent in the ten-minute drive time area.

Continue work to expand and implement the Saline Main Street branding system, as could include the creation of a Downtown Saline logo which identifies with the place (as opposed to the saline Main Street logo, which identifies with the organization). Encourage businesses to incorporate the downtown logo and branding system elements in their own marketing and advertising to help expand the brand’s reach and message, and to enhance awareness as to the full range of products and services available in Downtown Saline. Examples for business “plug-in” extensions include:

Creating a limited-time marketing grant program offering a rebate to businesses utilizing branding system graphics in marketing materials and advertisements.

Supplying branded “Something Special from Downtown Saline” gift tags to merchants during the holiday season or similar local product tags.

Working to enhance links and connections with businesses’ Internet websites, Facebook pages, etc.

Providing a customizable store hours sign template or a “welcome/sorry we missed you” sign for display by downtown businesses.

Encouraging businesses to utilize branding system graphics in retail novelty items (t-shirts, coffee mugs, key chains, etc.).

Using a customizable decal and/or storefront poster template incorporating a Downtown Saline campaign theme to promote products, services, personalities, etc. found inside.

Continue to apply the system of event graphics to promote Downtown Saline area events and to reinforce a strong sense of Downtown Saline as a quality destination for fun activities and entertainment.

Encourage businesses to incorporate the downtown logo and branding system elements in their own marketing and advertising to help expand the brand’s reach and message, and to enhance awareness as to the full range of products and services available in Downtown Saline.


0

Ongoing and/or Immediate

1

Within One Year

2

Within Two Years

3 ►

Within Three Years

Data obtained from Experian shows that the daytime population within one mile of Downtown Saline grows to an estimated 7,617 persons, and that 3,240 employees work within one mile of the downtown district. The workplace market, then, is a sizable, captive market for Downtown Saline businesses.


0

Ongoing and/or Immediate

Continue work to enhance alleyways and other public spaces which could serve as gathering places and enhance the downtown pedestrian experience.

1 ►

Within One Year


0 ►

► ► ►

Ongoing and/or Immediate

The Organization Team’s roles as partnership builder, resource locater and publicity machine will be absolutely vital to ensuring the success of Saline Main Street efforts.



Saline 2013 Market Study Summary Report