That’s How They Do That

Ever wonder why one neighborhood lands a large destination retail center or why the merchandise in a large national brand name store differs from one area to another? It’s all market analysis.

Is it science, magic or an educated guess? Some may believe “all of the above” is actually the best answer.

There is a science to market analysis, and the U.S. Census Bureau provides a large amount of the data to be plugged into formulas that will project whether a business will survive if it locates in a certain area. Seven factors determine the likelihood of success: population, income, age, education, occupation, ethnicity and housing. The importance of each of these factors varies between types of retailers.

Obviously, retailers need shoppers, so locating a Macy’s in Smalltown, U.S.A., population 48, will not mean a lot of foot traffic through their doors. But how many Macy’s stores are within the Columbus Metropolitan Statistical Area, population 1 million-plus? A Google search of “Macy’s Columbus Ohio” returns eight results, not including spas or furniture stores under the Macy’s label.

Income is an indicator of the spending power of a neighborhood. Discount stores tend to avoid extremely high- or extremely low-income areas. Typical department stores target areas with a median income over $35,000, while specialty fashion retailers look for areas with a median income over $75,000.

Age is another factor considered in the equation of retail success. If the area being considered has a large elderly population, drug stores will give strong consideration to the possibility of locating there.

Neighborhoods whose residents have attained advanced degrees will typically have bookstores and computer and software stores. Higher education attainment will likely mean higher median incomes, but the examples listed will focus more on the education level than the income.

Occupations associated with an area will make it more attractive to some stores than to others. High concentrations of white-collar workers spell success for office supply stores and large music and video stores.

Stores must recognize that ethnicity will determine what merchandise they should have on their shelves. The ethnic makeup of a community will determine how and where the store advertises as well.

The final factor in the equation is housing. A thriving housing market will attract home improvement, furniture and garden centers. Home ownership correlates directly to expenditures related to home products.

Researchers find all this data for an area, plug it into a formula and then compare the results to other similar areas. This is the educated guess portion of market analysis. If a store is successful in one area, a new store will likely succeed if the comparison of the factors yields similar incomes, education, etc.

Finally, the magic: Lifestyle data is considered for the area. The neighborhood reveals much about its residents in the similar types of homes, vehicles in the driveways and products inside the homes. Because neighbors become neighbors through like interests, goals and life cycle events, the shopping tendencies will also be similar, spelling success for a retailer hoping to meet their needs.

Science, magic, educated guesses – data and research are the determining factors of all.

From the Violet Township Road Department

Greg Butcher, PE, Violet Township Engineer

The Road Department provides repair and maintenance of 105 miles of Township roadways, including surface and drainage maintenance, roadside mowing, sign maintenance, snow and ice control, and park maintenance. The department consists of the Township Engineer, three full-time employees and three to five part-time employees.

The Road Department office contracts resurfacing and re-striping projects while managing the new purchase, repair and maintenance of equipment and overall highway operations. Additionally, major street, drainage and sidewalk improvement projects are coordinated by the department.

The office further communicates with other local agencies, the Fairfield County Engineer and the Ohio Department of Transportation to promote and coordinate new joint traffic and construction projects within Violet Township.

Major Projects

Some recent major Violet Township projects and costs constructed within the past few years include:

• Allen Road Culvert Replacement, $150,000

• Busey Road Realignment, East of Allen Road, $270,000

• Jefferson Drive Culvert Replacement, $125,000

• Busey Road Culvert Replacement, $125,000

• Mingo Estates Section One Infrastructure Improvements, $800,000

• Diley Road Widening, $5,500,000

• Pickerington Local Schools Safe Routes to Schools Sidewalks, $280,000

Each of these projects was contracted to private firms and coordinated by the Road Department. Funding for the improvements was mainly derived from a combination of Township Road Department and General Fund sources as well as grants from the Ohio Public Works Commission.