Rosenow, Specavek Group (RSG), an economic development consulting firm, analyzed spending patterns and potential retail product demand for goods within San Gabriel’s trade area. The report investigated which types of retailers are more likely to locate within the community and provided recommendations for future retail recruitment efforts. These findings are also useful for existing businesses to assist in strengthening their customer base.
Some of the highlights:
Retail is trending towards smaller footprints and urban infill mixed-use developments are becoming more prevalent; San Gabriel has a greater number of retail businesses per capita than any of the surrounding cities.
The impact of Chinese shoppers and tourists cannot be underestimated. The number of Chinese tourists is increasing, with each tourist spending approximately $179 per day. The median household income for the trade area is approximately $50,000 and is expected to trend upwards.
The trade market area was developed by 5-minute, 10-minute and 15-minute drive time boundaries. RSG used the 10-minute drive time boundary as San Gabriel’s trade area. Comparative demographics within the trade area are discussed.
Restaurants in San Gabriel are well known regionally and many customers travel beyond the 10-minute drive time boundary to dine in San Gabriel. “Of the 33 restaurants in the San Gabriel Valley with over 500 Yelp reviews, six are in San Gabriel. Restaurants can be a very viable marketing strategy to attract people to San Gabriel.”
Total retail sales reveal leakage in “clothing, shoes and home improvement products.” translated into dollars and square footage unmet demand.