RETAIL TRADE AREA PERFORMANCE SPOKANE REGION Prepared by Brett J. Lucas Business/Economic Geographer Spokane, WA
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1 RETAIL TRADE AREA PERFORMANE POKANE REGION Prepared by Brett J. Lucas Business/Economic Geographer pokane, WA
2 Introduction Retail sales within a community are the result of overall economic activity in the region Retailing often serves as an indicator of community vigor and well being Development of a local retailing sector addresses the economic development strategy of import substitution
3 Trade Area Analysis Trade area analysis is an evaluation of a community retail market The key to the evaluation is to determine weather a community s retail sector is experiencing a net leakage or a net surplus of retail dollars
4 Trade Area Analysis Eight different retail sectors evaluated Building & Hardware General Merchandise Grocery Auto & Gasoline Apparel Furniture Lodging & Eating Liquor
5 Trade Area Analysis Retail ales ity and tate calendar year retail sales from the Department of Revenue Trade Area apture (TA) an estimate for the number of customer equivalents who purchase a specific retail category type in a given locality TA ij = R is PP s R ij PI j PI s
6 Trade Area Analysis Pull Factor (PF) calculates what proportion of the consumers that a city draws are from outside its boundaries PF= TA ij POP j A pull factor greater than 1.0 means that a city is attracting consumers outside the local population
7 Regional Population Growth pokane & pokane Valley mall ities 250,000 12, ,000 10,000 8, ,000 6, ,000 4,000 50,000 2, Airway Heights heney Deer Park pokane pokane Valley Liberty Lake Medical Lake Millwood
8 Total Taxable ales 3,000,000,000 pokane & pokane Valley ,000,000 mall ities ,500,000, ,000,000 2,000,000, ,000,000 1,500,000, ,000,000 1,000,000,000 50,000, ,000, pokane pokane Valley Airway Heights heney Deer Park Liberty Lake Medical Lake Millwood
9 Total Taxable ales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% hare Of Total Taxable Retail ales % 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% % % Annual Percent hange In Total Taxable Retail ales % % Airway Heights heney Deer Park Airway Heights heney Deer Park Liberty Lake Medical Lake Millwood Liberty Lake Medical Lake Millwood pokane pokane Valley pokane pokane Valley
10 Building & Hardware Includes: lumber, building materials, paint, glass, wallpaper, nursery stock, and lawn/garden supplies
11 Building & Hardware Taxable Retail ales Building-Hardware $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 Retail urplus/leakage Building-Hardware $5,000,000 $- $(5,000,000) $ $(10,000,000)
12 Building & Hardware 1,200,000 Trade Area apture Building-Hardware Pull Factor Building-Hardware 1,000, , , , ,
13 Building & Hardware Market hare Building-Hardware Potential Market hare Building-Hardware 33% 1% 1% 1% 1% 0% 1% 27% 1% 2% 1% 4% 1% 1% 62% 63%
14 Building & Hardware TA
15 Building & Hardware PF
16 General Merchandise tores Includes: dry goods, apparel and accessories, home furnishings, small wares, hardware and food
17 General Merchandise Taxable Retail ales General Merchandise $600,000,000 $100,000,000 Retail urplus/leakage General Merchandise $500,000,000 $50,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $- $(50,000,000) $(100,000,000) $(150,000,000) $ $(200,000,000)
18 General Merchandise 1,200,000 Trade Area apture General Merchandise Pull Factor General Merchandise 1,000, , , , ,
19 General Merchandise Market hare General Merchandise Potential Market hare General Merchandise 6% 1% 1% 0% 0% 0% 27% 1% 2% 1% 4% 1% 1% 40% 52% 63%
20 General Merchandise TA
21 General Merchandise PF
22 Grocery/Food tores Includes: grocery stores, meat & fish markets, fruit & vegetable stores, confectionary stores, dairy retail, bakeries, coffee/tea stores, and health food
23 Grocery Taxable Retail ales Grocery $250,000,000 $60,000,000 Retail urplus/leakage Grocery $200,000,000 $150,000,000 $100,000,000 $50,000,000 A $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- $ $(10,000,000)
24 Grocery 800,000 Trade Area apture Grocery Pull Factor Grocery 700, , , , , , ,
25 Grocery Market hare Grocery Potential Market hare Grocery 21% 0% 5% 0% 5% 0% 0% 27% 1% 2% 1% 4% 1% 1% 69% 63%
26 Grocery TA
27 Grocery PF
28 Automotive Dealers & Gasoline ervice tations Includes: dealers selling new and used automobiles, boats, RV s, trailers, motorcycles, parts & accessories, and gasoline stations
29 Auto & Gasoline Taxable Retail ales Auto-Gasoline $800,000,000 $150,000,000 Retail urplus/leakage Auto-Gasoline $700,000,000 $100,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 A $50,000,000 $- $(50,000,000) $(100,000,000) $(150,000,000) $100,000,000 $(200,000,000) $ $(250,000,000)
30 Auto & Gasoline 900,000 Trade Area apture Auto-Gasoline Pull Factor Auto-Gasoline 800, , , , , , , ,
31 Auto & Gasoline Market hare Auto-Gasoline Potential Market hare Auto-Gasoline 1% 3% 1% 7% 0% 0% 27% 1% 2% 1% 4% 1% 1% 44% 44% 63%
32 Auto & Gasoline TA
33 Auto & Gasoline PF
34 Apparel & Accessory tores Includes: new clothing, shoes, hats undergarments, and related items for personal wear
35 Apparel Taxable Retail ales Apparel $300,000,000 $120,000,000 Retail urplus/leakage Apparel $250,000,000 $100,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 A $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- $ $(20,000,000)
36 Apparel 1,000,000 Trade Area apture Apparel 8.00 Pull Factor Apparel 900, , , , , , , , ,
37 Apparel Market hare Apparel Potential Market hare Apparel 0% 0% 0% 0% 0% 0% 1% 2% 1% 1% 4% 1% 39% 27% 61% 63%
38 Apparel TA
39 Apparel PF
40 Home Furniture, Furnishings, and Equipment tores Includes: furniture, floor coverings, draperies, glass/chinaware, appliances, consumer electronics, computer software, and music stores
41 Furniture Taxable Retail ales Furniture $350,000,000 $5,000,000 Retail urplus/leakage Furniture $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- $(5,000,000) $(10,000,000) $(15,000,000) $ $(20,000,000)
42 Furniture 900,000 Trade Area apture Furniture Pull Factor Furniture 800, , , , , , , ,
43 Furniture Market hare Furniture Potential Market hare Furniture 24% 1% 1% 2% 2% 0% 2% 27% 1% 2% 1% 4% 1% 1% 68% 63%
44 Furniture TA
45 Furniture PF
46 Lodging & Eating Establishments Includes: motels, hotels, prepared food and drink for consumption on premise (i.e. restaurant), and refreshment stands
47 Lodging & Eating Taxable Retail ales Lodging-Eating $800,000,000 $120,000,000 Retail urplus/leakage Lodging-Eating $700,000,000 $100,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $100,000,000 $- $ $(20,000,000)
48 Lodging & Eating 900,000 Trade Area apture Lodging-Eating Pull Factor Lodging-Eating 800, , , , , , , ,
49 Lodging & Eating Market hare Lodging-Eating Potential Market hare Lodging-Eating 1% 2% 25% 1% 0% 0% 0% 27% 1% 2% 1% 4% 1% 1% 71% 63%
50 Lodging & Eating TA
51 Lodging & Eating PF
52 Liquor ales Includes: liquor sold for personal consumption off premise from a grocery store, liquor store or convenience store
53 Liquor $12,000,000 Taxable Retail ales Liquor $2,000,000 Retail urplus/leakage Liquor $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- $(500,000) $(1,000,000) $(1,500,000) $ $(2,000,000)
54 Liquor 900,000 Trade Area apture Liquor Pull Factor Liquor 800, , , , , , , ,
55 Liquor Market hare Liquor Potential Market hare Liquor 1% 0% 1% 2% 0% 1% 2% 1% 1% 5% 7% 27% 4% 1% 84% 63%
56 Liquor TA
57 Liquor PF
58 onclusion Results from a retail trade analysis are a step in attracting local retail dollars hanges in sources of income, spending patterns, and the population make-up will influence retailing in both smaller and larger communities Retail leakage into Idaho will continue to be of concern to communities east of pokane
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