Agenda - Economic Development Authority - 01/25/2018

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Page 111 Retail market power in the City of Ramsey A more complete listing is included in an attachment to this report. The retail market analysis shows considerable opportunity for businesses in the following areas: • Clothing and clothing accessories stores, $25.9 million • General merchandise stores, $51.5 million • Foodservice and drinking places, $53.2 million o Full service, $21.7 million o Limited service, $23 million • Motor vehicle and parts dealers, $29.7 million • Motor vehicle dealerships, $32.3 million • Building material and garden supply, $53 million • Food and beverage stores, $49.5 million • Health and personal care stores, $22.5 million In each of these industries, a significant amount of money is flowing out of Ramsey to other commercial and retail destinations. This also shows, however, a significant opportunity for each industry within Ramsey, given that the Claritas data show concrete demand from Ramsey residents. The region is doing well in the following areas: • Furniture and home furnishing stores • Auto sales • Gas stations and convenience stores With these categories, Ramsey is actually pulling in money from outside of the designated market areas. If people are currently coming to Ramsey for furniture, auto sales, or gas stations, Ramsey has the opportunity to draw those consumers to related businesses. Niches The city of Ramsey should consider adopting a niche -focused development model. A commercial niche is an interrelated cluster of businesses and industries that are complementary, but do not compete. Niches can be identified by looking at groups of NAICS codes or through common-sense connections already existing in a community. Niche development promotes economic strength through specialization, revitalizing downtowns and retail markets by attracting businesses that complement what currently exists in a city. Assets would include an existing business or a specific market segment. Because niches are context - dependent and built with knowledge of a community's assets and challenges, it is useful to inventory both before suggesting potential niches.