11-14-2018 Council Packet - Laserfiche WebLink

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© 2018 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to 612‐625‐8233. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. Comparing Little Canada’s Performance to Similar Minnesota Cities The following tables provide information on retail sales in Little Canada by selected merchandise categories."Expected sales" is a standard to which actual performance can be compared. In calculating expected sales, population, income, and typical "pulling power" characteristics are taken into account. The following table calculates pulling power using data from cities based on population + or - 20% of Little Canada’s. Expected sales can be used as a guideline or "par value" in analyzing retail strength. Selected Categories Expected Sales (millions) Actual Sales (millions) Variance As % of Expected Trade Area’s Estimated Customer Gain (or Loss) Furniture Stores $2.71 $39.01 +1338.1%135,161 Leisure Goods $2.31 $12.86 +456.2%46,077 Vehicles and Parts $5.24 $5.52 +5.5%553 Clothing $1.76 $0.26 -85.5%-8,634 Total Taxable Retail & Service $91.50 $118.37 +29.4%2,965 THE BOTTOM LINE Little Canada has been increasing its retail strength as seen in its growth in taxable sales (even when adjusted for inflation) and its increasing pull factor. Overall the community has been pulling in more sales than expected with a pull factor of 1.28 in 2016. When compared to cities similar in retail hierarchy and population, Little Canada’s overall pull factor is stronger than others. Comparing its expected vs. actual sales (which factors in its size based on its comparison group), Little Canada brings in nearly 30% more than expected, due in large part to great strength in a few business categories. Furniture store sales are very strong and certainly are bringing in customer traffic. However, opportunities exist to capitalize on this traffic, including in the clothing category which underperforms in expected sales. Six of the 13 categories, however, have less than four firms in the city and have their data suppressed. The full retail trade analysis report will show how various retail categories have changed since 2003 so individual businesses can see how they performed compared to the whole community. The report is also useful for exploring expansion opportunities. Author: Ryan Pesch, University of Minnesota Extension, Community Economics THE EXTENSION CENTER FOR COMMUNITY VITALITY makes a difference by engaging Minnesotans to strengthen the social, civic, economic and technological capacity of their communities. To read more, visit: www.extension.umn.edu/community 3