Saline 2013 Market Study Summary Report

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http://www.salinemainstreet.org

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Street Area.

Limitations and Disclaimers

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.

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 herit-

age, and the small town, hometown

qualities of Saline.

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

Population 5 Min 10 Min 20 Min

2000 Census 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

Change 2012—2017 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

Change 2012—2017 2.4% 1.4% 2.1%

Median HH Income 5 Min 10 Min 20 Min

2012 Estimate $59,767 $76,466 $51,731

2017 Projection $66,445 $80,374 $57,927

Change 2012—2017 11.2% 5.1% 12.0%

Source: Esri Market Profile

Downtown Saline Drive Time Market

Fast Facts

State Income 2012 2017 + %

Median HH $44.9K $52.3K 16.3%

Average HH $60.1K $66.6K 10.8%

Per Capita $24.0K $26.8K 11.5%

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.

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 Segmenta-tion Handbook available for download at http://www.esri.com/library/brochures/pdfs/tapestry-segmentation.pdf.

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%


04. Boomburbs 2,570 23.2%

06. Sophisticated Squires 1,676 15.1%

02. Suburban Splendor 1,285 11.6%



22. Metropolitans 13,195 11.1%

63. Dorms to Diplomas 11,869 10.0%

39. Young and Restless 7,945 6.7%


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 manage-ment, 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

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 Households

These residents are educated; more than one-third of the popula-tion aged 25 years or older holds a bachelor’s or graduate de-gree; another third has attended college. Occupations range from management to unskilled labor positions. Most work in white-collar 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

1. Home improvement

2. Hold large life insurance policies

3. Landscaping

4. Listen to classic hits radio

5. Own 3+ vehicles

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 supple-ment their salaries with income from interest, dividends, and rental property at a rate much higher than the national level. Well edu-cated, more than half the population aged 25 years and older

hold a bachelor’s or graduate degree.

Lifestyle Traits

1. Gardening

2. Hold large life insurance policies

3. Stay at Hilton hotels

4. Listen to all-news radio

5. Read travel, sports magazines

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Retail Sales

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

Drive Time Market ($MM)

5 Min 10 Min 20 Min

$85.3 $194.7 $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)

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)

Total Food & Drink (NAICS 722) $1.9 ($14.9) $21.9

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 service-

related purposes? 54.5%

For eating, drinking and/or

entertainment? 38.6%

To shop? 9.1%

Source: 2013 Downtown Saline (Online) Consumer Survey.

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 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%


Question

Have you purchased any products on the

Internet within the last three months?

Consumer Survey Responses Percent

Yes 85.1%

No 14.9%


Question

What type(s) of products have you purchased on the Internet within the

last three months?

Products Count Percent

Books 131 51.0%

Gifts 113 44.0%

Women’s Clothing 94 36.6%

Hobbies and Crafts 59 23.0%

Sporting Goods 54 21.0%

Home Furnishings 52 20.2%

Men’s Clothing 47 18.3%

Beauty Supplies 41 16.0%

Children’s Clothing 41 16.0%

Flowers 41 16.0%


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%


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 re-

sponses 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

Which of the following best describes the potential for your business to

expand within the next one or two years?

Responses

High potential 26.7%

Some potential 46.7%

Low potential 20.0%

No potential 6.7%


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%


Question

Would you consider participating in future Downtown Saline cooperative/joint advertising

or marketing programs?

Responses

Yes 71.4%

No 28.6%


Question

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

incentives?

Responses

Business marketing consultations 64.7%

Low-interest line of credit/payment 52.9%

Business assistance seminars 41.2%

Business management consultations 29.4%


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%

Expand hours of operation 31.8%

Expand services or product lines 31.8%

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

Question

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

most useful to you?

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%


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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%


Question

Which category includes your annual rent per square foot expense? If you own your build-ing, 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%





20.00 or more per square foot 8.0%


Question

Does the rent amount [previously indicated]

include most or all utilities?

Responses

Yes 32.0%

No 68.0%


Question

Does the rent amount [previously indicated] include Triple Net fees? (Net building insur-ance, real estate taxes, common are mainte-

nance, etc.)

Responses

Yes 42.3%

No 57.7%


Question

What is your annual sales volume per square foot?

Responses

Less than $50 per square foot 11.1%

$50 to $99 per square foot 27.8%






$400 or more per square foot 0.0%

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

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.


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%


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.

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Question

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

chiropractor, attorney, accountant, etc.).


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%


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.

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%


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%


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%

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Ongoing and/or Immediate 0

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.

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Within One Year 1

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Within Two Years 2

Remain plugged-in to planning processes for

the US Highway 12 (Michigan Avenue)

reconstruction project; share information with

downtown businesses and work collaborative-

ly to help businesses prepare and plan for

doing business during the construction period.

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Within Three Years 3

Identify and promote potential redevelop-

ment sites and opportunities to increase

density and uses in Downtown Saline. Review

and refine prior plans and/or prepare rede-

velopment 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.

► 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.

Market insights and the perspectives of downtown business own-ers provide direction for Downtown Saline marketing and promo-tion strategies.


Encourage businesses to incorporate the

downtown logo and branding system

elements in their own marketing and advertis-

ing 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.

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Within Two Years 2

Within One Year 1


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Within Three Years 3

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, cap-

tive market for Downtown Saline businesses.

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Within One Year 1

Continue work to enhance alleyways and

other public spaces which could serve as

gathering places and enhance the downtown

pedestrian experience.


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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.