Teamwork
You provide local data, we provide a list of stores by consumer category that have market potential in your trade area. First, we provide the tools for you to determine your existing local trade area. By partnering with us and providing accurate local data, you insure that our analysis will truly reflect your local retail market conditions. In addition, we will ask about unique populations in your trade area that add to the market potential.
Next, we examine the existing retail in your trade area. Our analysis uses a propriety metric to determine retail market potential. We use both public and proprietary resources. We analyze gaps in the retail market, and recommend retail that has potential within your trade area. We consider the economic geography of your community and the surrounding area. Then, we make recommendations on how to expand the trade area, identifying new customers for retail stores.
Why Our Methodology Works
Retail decisions are sometimes made by using a boiler-plate market analysis that provides the median household income within a five- or ten-mile radius of the proposed location; the analysis then provides total expenditures of those households. No trade area is perfectly round like the circumference circle. Instead, customers make shopping decisions based on retail proximity and choice, transportation options, and geographical features. Thus, it is critical to know exactly where your customers live and work, to accurately determine the trade area. In addition, household spending patterns differ across income levels, so the median household expenditures do not accurately reflect all household expenditures for a specific trade area. The table below demonstrates the variety of spending patterns across household income levels.
$5,000 $10,000 $15,000 $20,000 11.2% 11.1% 10.2% 9.7% 4.3% 4.3% 3.9% 3.7% 1.7% 1.7% 1.6% 1.5% 5.8% 5.0% 5.2% 5.1% 1.5% 1.3% 1.3% 1.3% 4.4% 3.8% 3.9% 3.8% 1.0% 1.0% 0.9% 0.9%
U.S. Bureau of Labor Statistics, Consumer Expenditure
to
$9,999
to
$14,999
to
$19,999
to
$29,999
Survey. Percentage of income spent in certain categories
by annual household income.
Our metric accurately determines retail market potential based on different patterns of spending across all income levels in your trade area and the total number of households in your trade area.
We carefully analyze all household expenditures and the market share captured by existing retail. Only then will we recommend retail development potential in your community.
RMA Consulting 3126 W. Cary Street, Suite 707 Richmond, VA 23221
info@retailmarketanalyst.com