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Greater Dubuque Development Corporation - Retail Strategies Findings and RecommendationsCopyrighted December 16, 2024 City of Dubuque WORK SESSION # City Council ITEM TITLE: 5:15 P.M. - Greater Dubuque Development Corporation - Retail Strategies Findings and Recommendations SUMMARY: Greater Dubuque Development Corporation will be presenting along with Retail Strategies their findings and recommendations for opportunities to enhance the retail and hospitality sectors in the community. SUGGUESTED DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. 2024_12_16_City Work Session —With Retail Strategies -Final Page 12 of 1050 THE CITY OF Dubuque DuBE uFA�a9a av Masterpiece on the Mississippi rP PP zoo�•*o 13 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Work Session - Greater Dubuque Development Corporation - Retail Strategies Findings and Recommendations DATE: December 11, 2024 Greater Dubuque Development Corporation President and CEO Rick Dickinson is sharing information on the December 16, 2024, 5:15 p.m. Work Session. Greater Dubuque Development Corporation will be presenting along with Retail Strategies their findings and recommendations for opportunities to enhance the retail and hospitality sectors in the community. 1�,A� k�4 Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Rick Dickinson, Greater Dubuque Development Corporation President and CEO Page 13 of 1050 Greater Dubuque DEVELOPMENT CORP. City of Dubuque Work Session December 16, 2024 at 5:15 p.m. Introduction & Background of Retail Strategies Rick Dickinson President &CEO Retail Strategies Michael Warsaw Portfolio Director 4(P 4j' C��',, retail strategies Dubuque, IA Partnership Overview WHO WE ARE Our Partnership Retail Strategies is very pleased to partner with Greater Dubuque Development Corp. We share a common goal to generate new retail communication that would not otherwise happen, and to tell your story in a way that matters to retailers. We act as an extension of your economic development arm, and we surround your community with the resources and actions needed to create the desired results. Although we cannot guarantee success, we do guarantee you will be better off with us than without us. WHO WE ARE Relationship RETAIL AS A CATALYST Retail Empowers Economic Development Standing as the largest private -sector employer in the country and with a remarkable contribution of $3.9 trillion to the annual GDP, retail is the backbone of the nation's financial well-being and plays a pivotal role in driving economic prosperity. What truly distinguishes retail is its ability to support a workforce of 52 million Americans, equivalent to one in every four American jobs. It's a dynamic industry that fosters career growth, offers well -compensated positions and acts as a launchpad for aspiring professionals. Page 20 of 1050 RETAIL PROGRESSION CREATES COMMUNITY GROWTH Why Should a Municipality Invest Resources in Retail? Retail builds on retail. Retail economic impact adds up quickly. Retail attracts the workforce that attracts the primary jobs. Retail influences executives looking to locate their company in your community. Retail enhances the quality of life. Quality of life encourages the future growth of your community. retail recruitment ladder COW / Academy NORDSTROM CM • • C • 0 11 Ll • • 0 discover DATA In � r r �� , i fill liv DISCOVER Research You have at your disposal thousands of variables from population and household incomes to spending patterns by retail category. The information covered in this document represents the key highlights for your community. Retail Strategies has provided Dubuque's primary point of contact an electronic copy of each of these reports from multiple geographic parameters. The following are the highlights from a data and analytic perspective. uffs'n- Demographic °Overview zoomooe Mobile Data 2 Collections Customized Trade 3 AreaAnalysis O Lifestyle Segmentation O Retail Gap Analysis O Peer Analysis olviTATIO • **1 DISCOVER How retailers see it Residential Population Density -1dot = 100 Daytime Employee Population Density 1 dot = 100 Median Household Income $0-S25.000 ❑ $25.000-550.000 ❑ $50.000.$75.000 ❑ $75.000-$100.000 $100.000- S 150.000 > $150.000 Study Area Q 3.00 mi Q 5.00 m, Q0.5 min 0 0.10 min D- ^ B ank cl Your Demographic Playbook Current Year Estimated Population 37,119 72,903 4,686 45,957 Number of Households 14,712 28,770 2,107 18,126 Average Home Value $258, 538 $246,585 $245,167 $263,382 Population Growth % ('23-28) -1.9% -2.8% 1.5% -2.1% Current Year Average Age 41.5 41.0 41.8 40.9 Current Year Median Household Income $76,753 $66,614 $63,898 $74,389 Current Year % Bachelor's Degree 40.2% 35.0% 35.5% 38.9% Total Number of Employees 21,780 45,533 6,538 31,941 Daytime Population 49,953 91,922 11,195 64,936 Page 26 of 1050 DISCOVER Mobile Data Collection This mobile tracking service uses data collected from mobile phone users who have agreed within their apps and phone settings to enable location information. By drawing a geofence around a specific business or location, we are able to gather valuable data about the customer base that has actively used their mobile device while in the identified location. This tool allows us to see where customers are coming from to shop in your market using actual data. This information is used to optimize your trade area, analyze business locations, compare the frequency of visitors, and assist retailers in site selection. This is intended to support the trade area but does not solely define the trade area. % Home Distribution < .5% .5-1% 1-2% 2-3% 3-4% > 4% CTA OCTA '•r, DISCOVER Customized Trade Area Each retailer has a specific set of site selection criteria they use to determine if they will have a profitable store. Municipal boundaries, radius rings and drive times are a start to evaluating the information sought by these decision makers. A customized trade area is the next step to analyzing a market. A trade area defines a core customer base of consumers highly likely to shop and eat in the market at least once a month. Your trade area has been created by combining the mobile tracking data with drive times, geographic boundaries, and proximity to neighboring shopping destinations. Each retailer will analyze their own trade area based on their existing stores, their competition and site selection criteria. Retail Strategies has created the customized core trade area shown in the map here which is focused on a consumer who might travel to the market to shop or dine. Petersburg N V I ,rl,f Baton Pwas, Durango Sage. r Bankston Asbury _ EaDubulxra st xr . Centralia Farley Epwonh Key West Rockvdir Worthingtu on Monticello Langworthy Scotch Grove Z6071 Temple Hill Canton IraMJls Amber Center a Junction Onslow MonrrKXAh I 10 La More .r+ 149 &gpatch Elk Grove Cuba City Benton Hazel Green New D ,„ Council Galena SI . Ml War DISCOVER Customized Trade Area 104,920 projected 2028 population -2,234 Projected 5yr Change 10711154 2023 estimated population $701465 Median household income $71,351 (United States) DISCOVER Customized Trade Area 92% CURRENT YEAR ESTIMATED POPULATION BY RACE Race - Asian ■ Black 44 ■ Latino ■ White Other 6,030 5,235 1-person 2-person 3-person 4-person 5-person 6-person household household household household household household MW 7 or more person household CURRENT YEAR ESTIMATED HOUSEHOLDS BY HOUSEHOLD SIZE DISCOVER Customized Trade Area 45,000 40,000 35,000 30,000 25,000 20,OOC 15,000 10,00C 5,000 2,718 0 Vacant Housing Units 42,034 Occupied Housing Units 31,156 Owner -Occupied 10,879 Renter -Occupied 2023 ESTIMATED HOUSING UNITS BY TENURE $262,570 average housing unit value $523,956 (United States) DISCOVER Custom Trade Area 1 Person Households Family Households Married -couple family With own children under 18 years No own children under 18 years Male Householder: no wife present: 11,631 27,50 W,331P 13,666 1,906 With own children under 18 years 1,445 No own children under 18 years 742 Female Householder: no husband... W With own children under 18 years 2.31 No own children under 18 years 1,283 Nonfamily Households 2.897 CURRENT YEAR ESTIMATED HOUSEHOLD BY TYPE 2e45 people per household 2.58 (United States) DISCOVER Customized Trade Area Children at home ■ Workat Home _ Student Populations 4% 17% 6% 4% DAYTIME POPULATION Retired/Disable persons Emaloyed 47% Homemakers Unemployed 1% 11804771 daytime population DISCOVER Customized Trade Area Military Unclassified 0% 0% :)Ilar White Collar 33% $50,835 average salary $59,428 (United States) employee DISCOVER Lifestyle Reports Lifestyle reports allow BIG DATAto be summed up into a simple narrative on the personality of most households. When asked "Who is Dubuque?", often the community leadership describes themselves rather than the dominant personality of the area. Understanding consumer spending behavior based on personality allows Retail Strategies to better align the retail prospects with the purchasing patterns of the consumers in your market. ESRI Tapestry Segmentation is a geodemographic segmentation distinct, behavioral market segments. Selection of the variables used to identify consumer markets begins with data that includes household characteristics such as single person or family, income, relationships (married or multigenerational), and tenure; personal traits such as age, sex, education, employment, and marital status; and housing system that integrates consumer traits with residential characteristics characteristics like home value or rent, type of housing (single-family, to identify markets and classify US neighborhoods. apartment, townhouse, or mobile home), seasonal status, and owner Neighborhoods with the most similar characteristics are grouped together, while neighborhoods with divergent characteristics are separated. Internally homogenous, externally heterogeneous market segments depict consumers' lifestyles and life stages. Tapestry Segmentation combines the "who" of lifestyle demography with the "where" of local geography to create a classification model with 67 costs relative to income. In essence, any characteristic that is likely to differentiate consumer spending and preferences is assessed for use in identifying consumer markets. Page 36 of 1050 DISCOVER Research & Analytics Page 37 of 1050 DISCOVER ESRI Tapestry Segmentation (2014) Whily�. 10.00% ige 38 of 1050 LifeMode Group, GenXurban Midlife Constants RI Tapestry _ zt Households: 3,068,400 + Average Household Size: 2.31 gmentation Lei La Median Age: 47.0 i14) ■ -�l 1 _ �' !- Median Household Income: $53,200 •e Cozy Country Living a c Green Acres Households: 3,923,00 Average Household Size: IMedian Median Age: 4-9 Household Income: $76,800 Cozy Country Living Salt of the Earth Households: 3,545,800 AOJ L' ' = Average Household Size: 2.59 f r Median Age: L4.1 Median Household Income: $56,300 DISCOVER ESRI Tapestry Segmentation (2024) 12.40% 12.70% ige 40 of 1050 •fr . .Mi • • IFZA LifeMode Groin. Middle Ground . LifeMode Group: GenXurbanY Old and Newcomers a Nz In Style 0 I Households: 2,859,2nC Households: 2,764,500 Average Household Size: 2.12 Average Household Size: 2.35 Median Age: 39.4 - f Median Age: 42.0 Median Household Income: `4 9'�0 " p Median Household Income: $73,000 LifeMode Group: GenXurban+ Cozy Country Living Rustbelt Traditions Green Acres �. Households:2,716,800 Households:3,923,400 Average Household Size: 2 47 + Average Household Size: 2.70 Median Age: 39 0 _ Median Age: 43.9 ML Median Household Income: $51,800 Median Household Income: $76,800 connect FOCUS gets RESULTS do[ After discovering your community's data and interpreting it into zones for recruitment we need to focus on which retailers and retail categories have the highest odds of success. CONNECT Retail Real Estate Process: Terms Retailers Corporate Real Estate Directors Tenant Representatives Franchisees Franchisee brokers CONNECT Retail Timeline Wall Street 1 I Tenant Rep I • Retailer Drives the Decision • Small percentage of proposed sites equal new openings • Long Process • It's all about PROFIT Identify Sites MI Proforn -ommittee Developer 3 months rl Full -Service 4x Quick Service Fmmm General Restaurants Restaurants Merchandise CONNECT Top Categories and Examples nuns OUTBACK BEEFOUBRADY'S S T E A K H O USE GOOD FOOD, GOOD SPORTS' LONGHORN STEAKHOUSE Top Categories and Examples t MISSION OOQ I tie American b`vay. � • ' �r s 000RA MEX ICAN EATS - 14'oE's SOUTHWEST GRiLL 0 -C CKEAr N FINGERS O O .0� Now kb A i~ I v a• 1 Iq \tAi 1 Owl Page 47 of 1050 Top Categories and Examples /Marshalls Dwhank4=0 "-N- _qw - Burlington 170 DRESS FOR LCss" CfvA 4oAW,, retail strate THANK YOU Dubuqu( E� F k Q&A on Retail and Demographics Rick Dickinson President &CEO Thank You Greater Dubuque DEVELOPMENT CORP. access dubuque jobs.com 'Avioiv«ilil,o'=7i1if=7iiii%it= Greater access Dubuque dubcuque DEVELOPMENT CORI. 4p jobs