Lake Grove District Market Analysis

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Lake Grove District Market Analysis

  1. 1. Lake Grove District Market Analysis & Business Development Strategy October 2009
  2. 2. Table of Contents Introduction ..................................................................................................1 Section 1: Retail Market Analysis...............................................................3 Section 2: Opinion Research ...................................................................10 Section 3: Competitive Assessment........................................................12 Section 4: Retail Strategy ........................................................................15 Section 5: Business Development Next Steps........................................18 Appendices A. Target Market Analysis Supporting Charts .......................................21 B. Retail Demand Analysis Supporting Charts .....................................27 C. Shopper Survey Results .......................................................................31 D. Business Owner Survey Results ...........................................................39 E. Retail Market Factsheet ......................................................................49 Acknowledgement The Lake Grove Retail Market Analysis was funded by the Clackamas County Main Street Program. We wish to acknowledge the organizing and outreach efforts of Main Street staff: Jamie Johnk, Clackamas County, together with the volunteer help of the Lake Grove Business Association. Lake Grove Market Analysis ♦ Retail Market Analysis i
  3. 3. Introduction At the heart of Lake Grove’s long-term success is its ability to offer residents, employees and employees a welcoming environment and a positive experience with shopping, dining and doing business. The purpose of the market analysis is to develop a market-based Business Development Plan that directly addresses Lake Grove’s desire to have a strong and vital business district. Clackamas County contracted with Marketek, Inc. to prepare this market analysis in conjunction with the Lake Grove Main Street Program. It focuses on one of the four key elements of the Main Street Program – Economic Restructuring. Program Approach The Lake Grove Main Street Program is organized according to the Main Street Approach, which focuses on four critical components for creating success and vitality: Promotion/Identity-Building, Design/ Physical Improvements, Economic Development, and Organization. 1) Promotions/Identity Building: Identify, develop and promote the image and promise of the business district by marketing its unique characteristics to shoppers, investors, new businesses, and visitors. Create an effective promotion strategy to forge this positive image. Create an atmosphere of fun and activity. 2) Design/Physical: Capitalize on and improve Lake Grove’s physical assets. Create an inviting atmosphere to convey a visual message about the comfort and vibrancy of Lake Grove. Increase the utility and user-friendly quality of Lake Grove. 3) Economic Development: Support existing and attract new businesses to respond to the current market. Balance business mix and provide amenities for all shoppers. Convert unused space into productive property. Sharpen the competitiveness of existing business. 4) Organization: Establish common goals for Lake Grove’s development, and build and organize consensus and cooperation among Lake Grove stakeholders. Lake Grove Market Analysis ♦ Retail Market Analysis 1
  4. 4. Project Purpose The purpose of this analysis is to: ♦ Provide a comprehensive assessment of potential market support for retail uses in the Lake Grove commercial district. ♦ Create an accurate picture of Lake Grove’s retail industry including a characterization of the existing supply of businesses; consumer preferences, needs and buying patterns; and opportunities and challenges for growth and development in Lake Grove. ♦ Provide a factual basis for developing strategies to strengthen and diversify Lake Grove’s retail base and capture more consumer spending locally. ♦ Recommend business development and marketing strategies to strengthen the Lake Grove retail base. Project Methodology As Lake Grove’s retail expansion efforts will be implemented over time, the market analysis considers a ten-year time frame from 2009 to 2019, which is a realistic projection period for retail development. Research, both primary and secondary, includes: ♦ Statistical estimates of potential supportable retail space in the Lake Grove market area ♦ Surveys of Lake Grove business owners ♦ Surveys of resident/employee shopping preferences ♦ Interviews with local businesses/retailers and other community leaders ♦ Seven site visits to Lake Grove This research was completed in tandem with a retail analysis/strategy for the City of Lake Oswego overall, the Lake Oswego Market Analysis & Business Development Plan. That effort included an inventory and mapping of ground floor businesses in all of Lake Oswego’s retail centers, including Lake Grove and information in that document will supplement this effort. This report is organized into five principal sections: 1) Retail Market Analysis 2) Opinion Research 3) Competitive Assessment 4) Retail Development Strategy 5) Business Development Action Plan Lake Grove Market Analysis ♦ Retail Market Analysis 2
  5. 5. Retail Market Analysis This section outlines Lake Grove’s key retail target markets and provides an estimate of existing and future support of retail space in the Lake Grove Market Area. TARGET MARKET ANALYSIS The Lake Grove Market Area has the potential to serve and attract sales from local residents, area employees, and visitors. Each customer group is summarized in the following. Local Resident Market Based upon the patronage of existing businesses, Lake Grove’s location within the region, its competitive assets and the transportation system, the Lake Grove Market Area is defined as shown on the map below. For comparative purposes, demographic data are also presented for the City of Lake Oswego, the Portland Metropolitan Statistical Area (MSA), and the State of Oregon (Exhibit 1). Lake Grove Market Area ♦ 2009 Lake Grove Market Area population was estimated at 72,916 persons and 29,826 households. ♦ Market Area has seen moderate population (0.72%) and household (0.63%) growth since 2000. Lake Grove Market Analysis ♦ Retail Market Analysis 3
  6. 6. ♦ Market Area growth rates were just below those of the Portland MSA and the State. ♦ The City of Lake Oswego has grown at essentially the same rate, just under 1%, as the Lake Grove Market Area since 2000. ♦ By 2014, the Market Area is expected to reach 75,549 persons and 30,950 households, similar to growth during the 2000-2009 period. ♦ Household size averages 2.4 persons in the City of Lake Oswego and Lake Grove Market Area, just below that of the Portland MSA (2.6) and the State (2.5). Exhibit 1 DEMOGRAPHIC SNAPSHOT City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon 2009 Demographic City of Lake Grove Portland State of Indicator Lake Oswego Market Area MSA Oregon Population 2009 (estimate) 37,792 72,916 2,233,323 3,841,859 2014 (forecast) 38,902 75,549 2,396,625 4,064,906 Avg. Ann. % Change ('00 to '09) 0.79% 0.72% 1.76% 1.37% Avg. Ann. % Change ('09 to '14) 0.59% 0.72% 1.46% 1.16% Households 2009 (estimate) 15,589 29,826 857,304 1,495,911 2014 (forecast) 16,083 30,950 919,054 1,584,044 Avg. Ann. % Change ('00 to '09) 0.62% 0.63% 1.67% 1.35% Avg. Ann. % Change ('09 to '14) 0.63% 0.75% 1.44% 1.18% Average Household Size 2.41 2.43 2.56 2.51 Median Household Income $84,485 $75,700 $62,166 $53,483 Median Age (Years) 44.0 39.9 36.3 38.0 Race Percent White Alone 89.6% 86.4% 81.5% 83.7% Percent Other Race/2+ Races 10.4% 13.6% 18.5% 16.3% Percent Hispanic 3.5% 8.8% 10.3% 11.2% Homeownership 69.9% 65.0% 62.7% 64.0% Educational Attainment Associate Degree 5.8% 6.3% 8.0% 7.7% Four Year Degree or More 64.1% 56.6% 31.5% 27.7% Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 4
  7. 7. ♦ Median household income in the Market Area is $75,700, approximately 22% higher than that of the MSA ($62,166). ♦ Median household income in the City of Lake Oswego is $84,485, considerably higher than the Market Area, the MSA, and the State. ♦ Median age in the Market Area (44 years) is on par with that of the State (38 years) but a bit above the MSA (36 years). ♦ The median age in the City of Lake Oswego is 44 years, higher than in the Market Area, the MSA and the State. ♦ Race in the Market Area and City is less diverse than in the MSA and in the State. ♦ Eighty-six percent (86%) of Market Area residents are white, 6% Asians/Pacific Islanders, and 3% of residents are “some other race” or two or more races. ♦ Nine percent (9%) of Market Area residents and 4% of the City population are of Hispanic origin, compared to 10% in the MSA and 11% in the State. Detailed charts characterizing the Market Area population including lifestyle information are provided in Appendix A. Employee Market ♦ An estimated 2,579 businesses operate within a two-mile radius of 16008 Boones Ferry Road area (Exhibit 2). ♦ Businesses within the two-mile radius employ more than 29,000 persons. ♦ The largest share of employees work in the Services Sector (35%), followed by Retail Trade (19%), and Finance/Insurance/Real Estate (18%). Two-Mile Radius of 16008 Boones Ferry Road Lake Grove Market Analysis ♦ Retail Market Analysis 5
  8. 8. Employees working in and near the Lake Grove Market area are an important captive market for retail, service, and entertainment business. Research conducted by the Building Owners and Managers Association of America estimates that office workers spend 10% to 15% of their expendable income in and near their places of work. Top spending categories include restaurants, entertainment, cards and gifts, personal care items, and books and magazines. V Exhibit 2 BUSINESSES AND EMPLOYMENT 2-Mile Radius 2009 Businesses Employees Industry # % # % Agriculture & Mining 42 1.6% 334 1.1% Construction 175 6.8% 1,670 5.7% Manufacturing 117 4.5% 2,709 9.2% Transportation 46 1.8% 507 1.7% Communication 16 0.6% 185 0.6% Electric/Gas/Water/Sanitary Services 8 0.3% 130 0.4% Wholesale Trade 193 7.5% 2,484 8.5% Retail Trade 400 15.5% 5,606 19.1% Finance/Insurance/Real Estate 509 19.7% 5,303 18.1% Services 953 37.0% 10,121 34.5% Government 13 0.5% 100 0.3% Other 107 4.1% 152 0.5% Total Employment 2,579 100.0% 29,301 100.0% Note: Distance is from 16008 Boones Ferry Road. Source: ESRI BIS Visitor Market The Clackamas County visitor market – which includes the City of Lake Oswego and the Lake Grove Market Area – has witnessed a strong rise in travel spending over the past 16 years. Lake Grove has the potential to attract more of the Clackamas County visitor market given that there are several hotels at Kruse Way and I-5 as well as the newly added hotel at the Bridgeport Shopping Center. ♦ Clackamas County visitor market grew from $177.4 million in 1991 to $448.5 million in 2007. Lake Grove Market Analysis ♦ Retail Market Analysis 6
  9. 9. ♦ Top visitor spending categories in Clackamas County include retail sales ($116 million per year or 26%) and restaurants ($104 million per year or 24%). Extrapolating the growth rate, Marketek estimates that from 2009 to 2019 visitor spending in the County is expected to increase by $154.8 million to reach $606.1 million. RETAIL DEMAND POTENTIAL Marketek estimated potential demand for additional retail, restaurant and entertainment space in the Lake Grove Market Area on resident spending. Spending potential by merchandise type was converted to square feet of store space based on sales per square foot standards derived from the Urban Land Institute’s Dollars and Cents of Shopping Centers. For the resident market, demand is derived from two sources. The first, “existing demand,” is demand for retail goods by current market area households that is now being met outside the Market Area. Existing demand is found by comparing the retail supply (i.e., actual retail sales) with retail demand (i.e., the expected amount spent by Market Area residents based on consumer expenditure patterns). When demand outweighs supply, a leakage occurs, indicating that consumers are spending outside of the Market Area for some retail goods or services. While consumers will always do a certain amount of shopping away from home, this comparison provides a reasonable indication of the availability of goods in the local market. The second source, “future demand,” is demand for retail goods based on spending patterns and projected household growth within the market area over the next ten years. Although Marketek did not calculate demand from the visitor market, this target group also has the potential to contribute to retail, restaurant, and service sales in the Lake Grove Market Area. Visitors will become more significant over time especially if the area actively promotes its dining, retail, and hotel accommodations. Lake Grove Market Analysis ♦ Retail Market Analysis 7
  10. 10. Potential demand for new retail space is divided among five merchandise categories: shoppers’ goods, restaurants, entertainment, convenience goods, and personal services. The types of goods and services within these categories are provided in Appendix B. The results of the demand analysis are depicted in Exhibit 3 below. Detailed analyses for each source of demand are provided in Appendix B. Exhibit 3 RETAIL EXPENDITURE POTENTIAL Lake Grove Market Area 2009-2019 Total Potential Merchandise/ 2009 2009-2014 2014-2019 New Retail Service Category Existing Unmet Market Area Market Area Space Demand Demand Demand (SF) (SF) (SF) (SF) Shoppers Goods Apparel --- 12,925 13,412 26,338 Home Furnishings --- 13,379 13,884 27,263 Home Improvement 42,041 15,162 15,733 72,936 General/Specialty Retail 162,278 14,653 15,205 192,136 Subtotal 204,320 56,119 58,234 318,673 Convenience Goods Grocery 68,282 24,495 25,418 118,196 Health/Personal Care --- 4,444 4,611 9,055 Subtotal 68,282 28,939 30,030 127,251 Restaurants --- 22,881 23,743 46,624 Entertainment NA 9,173 9,518 18,691 Personal Services NA 11,484 11,917 23,401 Total 272,602 128,596 133,442 534,641 Source: ESRI; Urban Land Institute; Marketek, Inc. ♦ Existing resident demand has the potential to support an additional 272,602 square feet of retail space in the Market Area. ♦ Future resident demand between 2009 and 2014 will support an additional 128,596 square feet. ♦ Future demand between 2014 and 2019 will support another 133,442 square feet for a total of 534,641 square feet of potential new retail space in the Market Area through 2019. Lake Grove Market Analysis ♦ Retail Market Analysis 8
  11. 11. The absorption and distribution of retail demand into the marketplace is a highly dynamic and fluid process, influenced by factors ranging from the timing and availability of quality space and existing business anchors to district marketing and incentives. All ‘smart’ shopping districts or centers strive to offer the marketplace a diversity of quality businesses, including specialty goods, which are so prevalent in today’s consumer market. If the Lake Grove Market Area sought to capture 10% of existing Market Area demand/leakage and 15% of the future demand potential between 2009 and 2019, it would translate to potential for 66,566 square feet of new retail space over the next ten years. In an effort to put these demand estimates in context, Appendix B provides the median sizes of several types of businesses that may be appropriate for Lake Grove. Success in capitalizing on this commercial opportunity will be highly dependent on a number of factors, including the commitment to quality physical development, property redevelopment and maintenance, aggressive marketing, and organized management of the commercial corridor. Lake Grove Market Analysis ♦ Retail Market Analysis 9
  12. 12. Opinion Research Shopper Survey Highlights ♦ One hundred and thirty-two (132) people participated in the survey. Complete results are provided in Appendix C. ♦ Most respondents choose to do their non-grocery shopping at Washington Square (53.4%). ♦ Of the 95 respondents, 23 suggest that they would buy books locally if there were more availability. Clothing is the next most popular choice of 17 respondents. ♦ Kitchenware and linens are the most commonly requested household goods, requested by 30 and 20 respondents respectively. ♦ Respondents most commonly suggest that Lake Grove does not need any additional convenience merchandise or personal services. The low response rate of this question compared to other questions about needed goods and services seems to further the case that many Lake Grove residents are satisfied with the current level of service. ♦ Unlike respondents from other areas, Lake Grove respondents prefer to shop during normal work hours (48.2%). ♦ The majority of respondents cite the convenient location of businesses as the primary advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to support local businesses (73.0%). ♦ The majority of respondents cite a poor selection of goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of shopping in Lake Grove. ♦ Almost half of respondents are 55 years of age or older (44.1%). Lake Grove Market Analysis ♦ Retail Market Analysis 10
  13. 13. Business Owner Survey Highlights ♦ The survey generated responses from 33 Lake Grove business owners. Complete results are provided in Appendix D. ♦ More than any other category, 30.3 percent of respondents reported that their business provides professional services. Restaurant and financial/insurance/real estate businesses are operated by 18.2 percent of respondents. ♦ Most respondents (68.8%) report operating their business in Lake Grove for more than ten years. ♦ Most respondents note that their proximity to a variety of freeways is a strength of doing business in Lake Grove. Specific freeways mentioned include Highway 217 and Interstate 5. ♦ Most respondents reported that a lack of accessibility is a disadvantage to doing business in Lake Grove. This is demonstrated by a lack of bike lanes, bus service, and inhospitable pedestrian conditions. ♦ Almost half of respondents report steady activity (43.3%). Thirty percent report moderate growth. ♦ An overwhelming majority of respondents (60.0%) do not plan on making any changes to their business in the next one to two years. ♦ Most respondents cite public access as the most critical contributing factor to the success of their business (60.0%). ♦ A strong majority of respondents reported that the current condition of the economy is the largest obstacle faced today (75.0%). ♦ Most respondents report that marketing/advertising information is important for their business to remain healthy and competitive (55.6%). Lake Grove Market Analysis ♦ Retail Market Analysis 11
  14. 14. Competitive Assessment Successful business districts of any size have a healthy business climate and a pro-active marketing program. Key amenities and characteristics to draw customers and/or business prospects to neighborhood or community shopping centers include those listed below: Exhibit 4 BUSINESS DISTRICT ATTRACTORS Access & Linkages Factors Affecting Retail Location • Good visibility • Compatible land use patterns • Walkability-pedestrian friendly • Property values (realistic) • Transportation/transit access • Rent levels (realistic) • Good signage • Organized promotions • Parking availability • Good management • Business compatibility Uses & Activities Image (clean, safe, green, attractive, • Overall active use—‘street life’ places to sit, ambiance) daytime and evening • Welcoming physical • Destination attraction(s) in close appearance—friendly, green, proximity attractive streetscape • Mix of stores/services—active • Safe business clusters • Clean, well maintained • Frequency of events • Benches, garbage cans, bike racks • Limited vacancies • Unique atmosphere • Local entrepreneurship • Sense of pride and ownership • Quality goods and services • Stable/improving real estate values Source: Marketek, Inc. These factors are particularly critical for older commercial districts seeking to compete for retail dollars being spent with new shopping malls, lifestyle centers and big box-anchored centers. Although many of Lake Grove’s assets and challenges have been identified through other initiatives like the Village Center Plan, they are listed below to portray a composite picture and to evaluate Lake Grove from two key perspectives: 1) What customers want from a shopping experience; and 2) Business climate and marketing factors that affect business decision- makers seeking a profitable location. Lake Grove Market Analysis ♦ Retail Market Analysis 12
  15. 15. Exhibit 5 LAKE GROVE COMPETITIVE ASSESSMENT Geography/Description The Lake Grove shopping and business district is nearly one mile in length with Boones Ferry Road as the spine. This four-lane vehicle-oriented commercial corridor stretches from Madrona Street on the southern end to Kruse Way to the north. Estimated ground floor built space totals over 780,000 square feet with an 8% vacancy rate. The business inventory revealed: 22 retailers, 28 dining/food-related businesses and 56 personal/professional/other service businesses. Strengths/Assets ♦ Grocery and convenience goods/services from numerous banks to professional offices are day-to-day anchors attracting neighborhood traffic ♦ Local marketplace is family-oriented with above average incomes but a low to moderate rate of growth ♦ Post office and elementary school are strong civic anchors also bringing consumers to the district ♦ Large concentration of restaurants offering a very wide range of cuisines and prices ♦ New infill development/redevelopment is occurring particularly on the southern end of the Boones Ferry corridor ♦ Within a 2-mile radius are over 2,500 businesses employing an estimated 29,000 persons offering a large built-in market 52 weeks a year. Kruse Way has nearly 900,000 square feet of office space, the largest concentration in Clackamas County. ♦ Close proximity to several hundred hotel rooms at Kruse Way and I-5, offering a year-round visitor market. ♦ Lake Grove has very good highway access with Boones Ferry serving as a commuter route ♦ Active engaged business community organized through the Lake Grove Business Association ♦ Lake Grove Village Center Plan provides a vision and guiding principles for the commercial corridor’s long term development ♦ Attractive streetscape improvements throughout the district Challenges ♦ Significant retail competition including Bridgeport, Costco and Washington Square ♦ Highly auto-oriented suburban style development with street fronting parking lots, dozens of driveways and freestanding commercial structures dominating the corridor ♦ Limited directional signage and gateway and other urban design features make it harder for shoppers to identify the Lake Grove shopping district Lake Grove Market Analysis ♦ Retail Market Analysis 13
  16. 16. Strengths Challenges Opportunities Lake Grove Market Analysis ♦ Retail Market Analysis 14
  17. 17. Retail Strategy General retail strategies are provided for Lake Grove related to Market Position, Business Mix and Targets and Property Development. Market Position Lake Grove must view itself as a ‘product’ and market itself to compete with other nearby shopping centers and business districts. It is beyond the scope of this project to suggest a brand identity, though marketing themes and taglines suggested in the community input are highly valuable. Developing a common message and identity will provide guidance for Lake Grove’s marketing, urban design elements, signage, advertising, marketing collateral, website, etc. In general, Lake Grove should promote itself as the true heart of the community—a unique and special destination for residents, visitors and businesses. A sample market position statement and key marketing themes are summarized in Exhibit 6. Exhibit 6 LAKE GROVE MARKET POSITION Target Markets Primary: Lake Oswego residents and Kruse Way businesses/employees Secondary: Pass through travelers using Boones Ferry/Kruse Way corridors and overnight visitors on I-5. Key demographics: middle-to-upper income women and families Market Position Statement Lake Grove is a small town shopping district serving a significant daytime marketplace with a wide range of convenience shopping choices and commercial services. Marketing Messages • Locally owned and operated businesses emphasizing excellent customer service • Catering to a variety of income levels • Independent businesses with hometown hospitality • Businesses supporting businesses to grow the local economy Storyline Lake Grove is a dual-purpose shopping district. It is both a neighborhood shopping district offering day-to-day retail and service needs and the Kruse Way community’s dining and business service center. Lake Grove Market Analysis ♦ Retail Market Analysis 15
  18. 18. Business Mix and Targets A successful business district in virtually any size community will have a balance and mix of uses that includes retail shopping, professional, cultural, financial and government services, entertainment, housing, and personal services. Lake Grove already exists as a mixed-use shopping center bringing residents, businesses and employees together for many purposes. Much of the Lake Grove market area fills its daily shopping needs in the Lake Grove district. An important goal over the next five years and longer will be to increase the number of retail businesses in the core area and maintain ground floor space in the contiguous commercial spaces for retail businesses, such as the Wizer’s Shopping Center. The results of the statistical market analysis as well as the opinion research indicate that Lake Grove has the opportunity to grow its retail base and fill niches and voids in the local marketplace. Identifying the most appropriate business mix for Lake Grove, as earlier noted, is a function of demographics and lifestyle characteristics, spending potential, survey research, the existing business base, and retail trends. Success will be achieved in Lake Grove with business owners dedicated to: ♦ Providing a good quality product at a fair price ♦ Providing exceptional customer service ♦ Responding to the changing needs of both trade area customers and visitors ♦ Aggressively marketing to these target customer groups ♦ Offering multiple, complementary product lines ♦ Filling specific, unique niches ♦ Having focus, imagination and a deep desire to meet the needs of the customer The following list of business and merchandise opportunities (Exhibit 7) potentially can be supported based upon the market analysis. They support the goal of concentrating on specialty goods and were identified as priorities by shoppers and business owners. Combinations of the goods and services as well as many others that have unique appeal to area markets should be considered for business development efforts. Through the survey research, local residents and employees expressed interest in both locally owned and select chain businesses. Lake Grove Market Analysis ♦ Retail Market Analysis 16
  19. 19. Exhibit 7 TARGET LAKE GROVE BUSINESS OPPORTUNITIES Merchandise Bookstore Children’s clothing Gifts/cards (moderately priced) Bed & bath linens/ Home accessories accessories Women’s casual apparel Kitchen accessories shop Quality consignment –ladies Restaurants/Food Ethnic Deli Brewpub Healthy foods Family dining-50s Entertainment Community art/performance center Personal Care/ Gym Service Computer repair/service Appliance repair Homeopathic/naturopathic care Property Development An important step for recruiting business prospects and developers is to provide an inventory of available real estate (properties and lots) and, better yet, to be in the position to bring key properties to the table. The goal of Property Development strategies is twofold--to create awareness of available properties and to stimulate interest and action toward property improvements in Lake Grove to better attract quality tenants. Lake Grove also has a number of catalytic infill sites that are prime redevelopment opportunities. Next steps will be delineated in the action plan section to follow. Lake Grove Market Analysis ♦ Retail Market Analysis 17
  20. 20. Business Development Next Steps The Lake Grove business district will benefit from the City’s commitment to economic development and vitality for the community overall. The just completed Lake Oswego Market Analysis/Business Development Plan will guide overall retail business retention, enhancement and attraction strategies for Lake Grove as will the new Lake Oswego Economic Development Manager who works community-wide. However, selected “next steps” for promoting and capitalizing on market opportunities are customized for Lake Grove in the chart that follows. As it relates to the Lake Grove Main Street Program, these steps provide guidance for the Economic Restructuring and Promotion components. Exhibit 8 NEXT STEPS Business Retention and Expansion 1. Promote the findings of Lake Grove’s Retail Market Analysis to existing businesses through business networking meetings. Encourage existing businesses to expand and diversify their merchandise mix based upon the opportunities identified. 2. Through a committee of LGBA, institute a quarterly Business Recognition or Kudos Program to celebrate Lake Grove businesses for their exceptional service, business improvements, community service, new initiatives and other positive endeavors. This PR tactic will reinforce Lake Grove’s identity as a distinct business district. 3. Respond to the top needs identified by businesses in the business owner survey—marketing—with an ongoing series of workshops and one-on-one technical assistance visits ranging from retail promotions and target marketing to merchandising and window displays. 4. Organize an inventory and evaluate all available vacant buildings and infill properties to identify those that are ‘most ready’ for retail/service tenants and most developable in the next five years. Work to match business opportunities to specific properties to cluster retail businesses. 5. Organize/work with Economic Development Manager on a business outreach program to be in regular contact with Lake Grove businesses to identify and respond to critical issues and opportunities in a timely manner. Tap the business development services of the Clackamas Community College (CCC) Small Business Development Center. Lake Grove Market Analysis ♦ Retail Market Analysis 18
  21. 21. Exhibit 8 (continued) NEXT STEPS Customer Attraction & Expansion (Promotion) 1. Create a one-page promotion calendar that includes community events (such as Lake Grove’s Got Talent), business promotions (such as the Dine Around Lake Grove event), targeted campaigns to Kruse Way businesses and Lake Grove neighbors and related activities. Add one or two activities/events in the year ahead. Determine who will lead and resources needed. 2. Prepare a rack card of Lake Grove restaurants/dining establishments that can be shared with Kruse Way office tenants, placed in hotel rooms and other appropriate locations. Be sure to include a simple map of where Lake Grove is. 3. Ensure that the LGBA website can be easily located and that a Lake Grove business listing is readily displayed. The website also provides the opportunity for Lake Grove to communicate its identity and offerings to existing and prospective businesses, as well as residents and visitors. 4. Develop a rack card of Lake Grove Business Services and Professionals and distribute to all businesses in a two-mile radius. 5. Advertise and feature Lake Grove businesses in the LO Review on a regular basis. A one-page ad encouraging the neighborhood to Shop Local particularly during the holiday season would be a sound investment. 6. Identify ways to partner with the Lake Grove Elementary School on key events/activities to gain Lake Grove businesses positive PR and more traffic. Ads, coupon books, sponsorships can all be creatively employed. Business Attraction 1. Share the Retail Marketplace factsheet (Appendix E) with brokers, local developers, the Chamber, CCC Small Business Development Center and Lake Grove business leaders to demonstrate the retail opportunity and vision for bringing more retailers to Lake Grove. 2. Develop target recruitment campaigns for two key business opportunities, to include business and local networking, mailings, one-on-one contact, third- party outreach, targeted collateral material and related activities. 3. Create a list of and maintain referral networks with leading realtors/brokers, developers and business leaders and educate them regarding the types of businesses most appropriate for Lake Grove. Develop a schedule of communications the group informed about Lake Grove initiatives and opportunities. This is truly important to reinforcing Lake Grove’s unique identity and offerings. Lake Grove Market Analysis ♦ Retail Market Analysis 19
  22. 22. Exhibit 8 (continued) NEXT STEPS Business Attraction (continued) 4. Create a list of and maintain referral networks with leading realtors/brokers, developers and business leaders and educate them regarding the types of businesses most appropriate for Lake Grove. Develop a schedule of communications the group informed about Lake Grove initiatives and opportunities. This is truly important to reinforcing Lake Grove’s unique identity and offerings. 5. Enable developers and prospective businesses to access downloadable marketplace data, an overview of the Lake Grove Village Plan, current and future planning projects and other pertinent recruitment material online. NOTE: Determine with the City of Lake Oswego Economic Development Manager what information will be on the City’s website, on LGBA’s website and/or in both places. 6. Create a simple database of key economic indicators to track and promote Lake Grove’s vitality and overall progress. Data should include: vacancy rate, jobs gained, private/public investment, businesses recruited/retained, special event/promotion traffic counts and overall retail sales trends. This information can be gathered with the guidance of the Economic Development Manager and used as part of an annual economic ‘report card’ of conditions. Successful implementation of Lake Grove’s business development program requires strong coordination, consistent communication and commitment to a vision for a more cohesive business district. The steps outlined above assume that a collaborative team will work together on the commercial base, including the Lake Grove Main Street Program, LGBA, the City of Lake Oswego, the Lake Oswego Chamber of Commerce, local neighborhood associations and other organizational leaders. To ensure forward movement and progress toward the overall goal of a healthy business district, begin with three-to-five new initiatives from the list and develop 30-60-90 project work plans. These work plans will be important for engaging new volunteers and community leaders and for measuring outcomes over time. Lake Grove Market Analysis ♦ Retail Market Analysis 20
  23. 23. Appendix A. Demographic Profile POPULATION & HOUSEHOLD GROWTH City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon 2000-2014 Avg. Ann. Change Avg. Ann. Change 2000-2009 2009-2014 Geographic Area 2000 2009 Number Percent 2014 Number Percent (Estimate) (Forecast) City of Lake Oswego Population 35,278 37,792 279 0.79% 38,902 222 0.59% Households 14,769 15,589 91 0.62% 16,083 99 0.63% Avg. Household Size 2.38 2.41 0.003 2.41 0.000 Lake Grove Market Area Population 68,475 72,916 493 0.72% 75,549 527 0.72% Households 28,225 29,826 178 0.63% 30,950 225 0.75% Avg. Household Size 2.42 2.43 0.001 2.43 0.000 Portland MSA Population 1,927,881 2,233,323 33,938 1.76% 2,396,625 32,660 1.46% Households 745,531 857,304 12,419 1.67% 919,054 12,350 1.44% Avg. Household Size 2.54 2.56 0.002 2.57 0.002 State of Oregon Population 3,421,399 3,841,859 46,718 1.37% 4,064,906 44,609 1.16% Households 1,333,723 1,495,911 18,021 1.35% 1,584,044 17,627 1.18% Avg. Household Size 2.51 2.51 0.000 2.51 0.000 Average Annual Population Growth Rates, 2000-2014 2.0% 1.5% 1.0% 0.5% 0.0% City of Lake Osw ego Lake Grove Market Portland MSA State of Oregon Area 2000-2009 Avg. Ann. Change 2009-2014 Avg. Ann. Change Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 21
  24. 24. HOUSEHOLD INCOME City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon 2009 Income City of Lake Grove Portland State of Lake Oswego Market Area MSA Oregon Less than $15,000 4.4% 4.8% 8.0% 10.6% $15,000 - $24,999 4.2% 5.0% 7.4% 9.7% $25,000 - $34,999 5.5% 6.0% 8.5% 10.3% $35,000 - $49,999 11.6% 12.6% 14.5% 15.6% $50,000 - $74,999 19.4% 21.1% 23.6% 22.7% $75,000 - $99,999 11.2% 12.9% 15.5% 15.0% $100,000 - $149,999 20.9% 18.9% 14.7% 10.2% $150,000 - $199,999 8.9% 8.1% 4.1% 3.1% $200,000 or More 13.9% 10.6% 3.7% 2.8% Total 15,589 29,826 857,304 1,495,911 Median Household Income $84,485 $75,700 $62,166 $53,483 Household Income Distribution, 2009 25% 20% 15% 10% 5% 0% Less than $15,000 - $25,000 - $35,000 - $50,000 - $75,000 - $100,000 - $150,000 - $200,000 or $15,000 $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 More City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 22
  25. 25. POPULATION BY AGE City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon 2009 Age Category City of Lake Grove Portland State of Lake Oswego Market Area MSA Oregon Under 5 4.7% 5.6% 7.0% 6.5% 5-14 11.9% 12.1% 13.2% 12.5% 15-19 6.6% 6.5% 6.7% 6.8% 20-24 5.4% 6.3% 6.7% 6.8% 25-34 10.2% 13.1% 14.6% 13.5% 35-44 12.6% 13.5% 14.3% 13.2% 45-54 18.8% 17.5% 14.9% 14.8% 55-64 16.5% 14.5% 11.7% 12.7% 65-74 7.3% 6.1% 5.7% 6.8% 75-84 4.1% 3.3% 3.5% 4.3% 85+ 1.9% 1.5% 1.7% 2.1% Total 37,792 72,916 2,233,323 3,841,859 Median Age 44.0 39.9 36.3 38.0 Age Distribution of the Population, 2009 20% 15% 10% 5% 0% Under 5 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 23
  26. 26. RACIAL & ETHNIC COMPOSITION City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon 2009 Race/Ethnicity City of Lake Grove Portland State of Lake Oswego Market Area MSA Oregon White Alone 89.6% 86.4% 81.5% 83.7% Black Alone 0.7% 1.0% 2.8% 1.7% American Indian Alone 0.3% 0.5% 0.9% 1.3% Asian/Pacific Islander 5.7% 5.6% 6.0% 4.1% Some Other Race Alone 1.0% 3.4% 5.1% 5.8% Two or More Races 2.7% 3.1% 3.7% 3.4% Hispanic Origin (any race) 3.5% 8.8% 10.3% 11.2% Total 37,792 72,916 2,233,323 3,841,859 Racial & Ethnic Composition, 2009 100% 80% 60% 40% 20% 0% White Alone Black Alone American Indian Asian/Pacific Some Other Two or M ore Hispanic Origin Alone Islander Race Alone Races (any race) City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 24
  27. 27. Community Tapestry Segments Recognizing that people who share the same demographic characteristics may have widely divergent interests and shopping preferences, Community Tapestry data (developed by ESRI Business Information Solutions) categorizes neighborhoods throughout the nation into 65 consumer groups or market segments. Neighborhoods are geographically defined by census blocks, which are analyzed and sorted by a variety of demographic and socioeconomic characteristics as well as other determinants of consumer behavior. Market area households have been grouped into Tapestry market segments. The market segments within the Lake Grove Market Area are identified and summarized in the chart on the following page. Lake Grove Market Analysis ♦ Retail Market Analysis 25
  28. 28. TOP TEN TAPESTRY MARKET SEGMENTS Lake Grove Market Area 2009 Market Segment % of Hhold Median Median Consumer Preferences & Hholds Type Age Income Purchases Well-educated professional couples who may live in the suburbs Married but enjoy the amenities of the city. They travel frequently for couples 1 In Style 20.8% 40 $72,112 business and pleasure, own mutual funds and contribute to 401-K without accounts. Enjoy dining out and shopping at stores such as Anne children Taylor and Nordstrom. Single persons These young, educated, working professionals change cities Enterprising 2 15.1% or 34 $69,960 frequently, moving where jobs are located. They prefer to rent, Professionals married rely on cell phones, PCs and the Internet and love to travel. couples Families in growing neighborhoods who own large, luxurious Suburban Married homes and hire contractors and maintenance workers. They 3 11.0% 41 $129,931 Splendor couples devote free time to travel, fitness and trips to museums or the theater. Empty nester couples who spend time working in their garden or Married 4 Exurbanites 9.7% 45 $88,195 decorating their homes. Enjoy domestic wine, attending the couples theater and outdoor activities such as boating and hiking. Professionals with exclusive, sohpisticated lifestlyes, members of Married these households travel extensively and attend museums, dance 5 Urban Chic 8.7% 41 $89,521 couples performances and concerts. They use the Internet to arrange travel, follow investments and make purchases. Affluent, older couples approaching retirement. They live in older, Married 6 Connoisseurs 6.8% 47 $123,255 affluent neighborhoods and spend heavily on travel and couples vacations. These households are young and on the go. Their purchases Singles/ Young and center on themselves and include sports gear, designer clothing 7 6.0% Shared 29 $43,645 Restless and computers and software. Favorite stores include Banana hholds Republic and Express. Live in start up homes or town homes, nearly half are renters, spend Aspiring Young Family 8 5.5% 31 $50,392 their discretionary income on their children and homes. Enjoy Families Mix eating out, movies, and playing sports. Married Singles and childless couples with a busy, urban lifestyle. Do yoga, 9 Metropolitans 5.0% couples/ 38 $61,973 listen to jazz and visit museums. Travel frequently for business and Singles pleasure. Mature, highly-educated, wealthy families. They indulge Married themselves with frequent travel and shop at stores such as 10 Top Rung 4.3% 42 $185,415 couples Nordstrom, Lord & Taylor and Banana Republic. Laptops and cell phones are necessities. Total Households 92.9% Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 26
  29. 29. Appendix B. Retail Demands SUMMARY OF MERCHANDISE AND SERVICE CATEGORIES Merchandise/Service Types of Goods/Services Category Apparel Women's Apparel, Men's Apparel, Children's, Footwear, Watches & Jewelry Home Furnishings Furniture, Floor Coverings, Major and Small Appliances, Household Textiles, Floor Coverings, PC Software and Hardware, Housewares, Dinnerware, Telephones Home Improvement Maintenance and Remodeling Materials, Lawn & Garden Misc. Specialty Retail Pet Care, Books & Periodicals, Sporting Equipment, Toys & Hobbies, Video Cassettes & Games, TV/VCR/Cameras, Audio Equipment, Luggage, Eyeglasses Groceries Food at Home, Nonalcoholic Beverages at Home, Alcoholic Beverages, Smoking Products Restaurants Food Away From Home, Alcoholic Beverages Entertainment Admission to Movie/Theater/Opera/Ballet, Recreational Lessons, Participation in Clubs Personal Services Shoe Repair, Video Rental, Laundry & Dry Cleaning, Alterations, Clothing Rental & Storage, Watch & Jewelry Repair, Photo Processing & Supplies, Child Care Source: ESRI BIS Lake Grove Market Analysis ♦ Retail Market Analysis 27
  30. 30. EXISTING RETAIL BALANCE Lake Grove Market Area 2009 Demand/ Target Spending Supply/ Leakage Sales Potential Merchandise Category Potential Retail Sales (or Surplus) ($/SF)* Space Shoppers Goods Apparel $34,849,896 $51,560,357 ($16,710,461) --- --- Home Furnishings $33,916,452 $67,148,952 ($33,232,500) --- --- Electronics & Appliances $32,891,267 $124,616,635 ($91,725,368) --- --- Home Improvement & Gardening $44,627,006 $38,741,211 $5,885,795 $140 42,041 Sporting Goods, Hobbies, Books & Music $14,383,476 $31,456,859 ($17,073,383) --- --- General Merchandise $193,301,880 $158,249,738 $35,052,142 $216 162,278 Miscellaneous Specialty Retail $17,614,506 $26,745,427 ($9,130,921) --- --- (florist, office supplies, gift stores, etc.) Convenience Goods Grocery $186,721,693 $160,091,594 $26,630,099 $390 68,282 Health & Personal Care $27,462,945 $70,588,330 ($43,125,385) --- --- Restaurants $166,991,096 $167,456,775 ($465,679) --- --- Total Leakage $67,568,036 Estimated Supportable Square Footage 272,602 * Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers." Source: ESRI BIS; Marketek, Inc. Lake Grove Market Analysis ♦ Retail Market Analysis 28
  31. 31. RETAIL EXPENDITURE POTENTIAL Lake Grove Market Area 2009-2019 2009 2014 2019 Per Target Retail Potential Retail Potential Retail Potential Merchandise or Household Sales Sales Space Sales Space Sales Space Service Category Expenditure ($/SF)* (in mil $) (SF) (in mil $) (SF) (in mil $) (SF) Apparel $2,403 $209 $71.7 342,980 $74.4 355,906 $77.2 369,318 Home Furnishings $2,369 $199 $70.7 355,031 $73.3 368,411 $76.1 382,294 Home Improvement $1,888 $140 $56.3 402,323 $58.4 417,485 $60.7 433,218 Misc. Specialty Retail $2,816 $216 $84.0 388,817 $87.1 403,470 $90.4 418,675 Shoppers Goods $282.6 1,489,152 $293.3 1,545,271 $304.3 1,603,505 Grocery $8,499 $390 $253.5 649,999 $263.1 674,495 $273.0 699,913 Health/Personal Care $1,443 $365 $43.0 117,921 $44.7 122,365 $46.3 126,977 Convenience Goods $296.5 767,921 $307.7 796,860 $319.3 826,890 Restaurants $5,354 $263 $159.7 607,162 $165.7 630,043 $171.9 653,786 Entertainment $734 $90 $21.9 243,400 $22.7 252,573 $23.6 262,091 Personal Services $1,543 $151 $46.0 304,742 $47.8 316,226 $49.5 328,143 Total $806.8 3,412,377 $837.2 3,540,973 $868.7 3,674,416 Five Year Net Gain $30.4 128,596 $31.5 133,442 * Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers." Sources: ESRI BIS; Urban Land Institute; Marketek, Inc. Lake Grove Market Analysis ♦ Retail Market Analysis 29
  32. 32. TYPICAL SIZE OF SELECTED BUSINESSES Merchandise or Service Category/Business Median National Local Chain Independent Specialty Retail Appliances 5,956 6,292 5,911 ~ Art Gallery 1,802 ~ 1,802 1,907 Beauty Supplies 1,807 1,634 2,450 1,829 Bike Shop 3,440 ~ ~ 2,596 Bookstore 10,093 23,000 9,990 2,740 Cameras 2,000 2,000 ~ ~ Children's Wear 3,913 4,879 3,054 2,105 Family Shoe Store 4,000 4,113 5,100 2,460 Family Wear 8,000 8,500 3,474 5,132 Gift/Cards 4,200 4,900 3,780 1,653 Hardware 13,200 13,900 ~ ~ Home Accessories 7,595 10,215 5,365 2,462 Jewelry 1,500 1,610 1,968 1,200 Luggage 2,500 2,499 ~ ~ Men's Clothing Store 3,500 4,319 3,065 2,750 Pet Supplies 7,995 17,600 3,201 3,200 Record/Tapes 4,464 6,178 ~ 2,017 Sporting Goods 8,465 22,000 4,980 2,995 Toys 7,855 12,000 ~ 3,344 Women's Ready to Wear 4,400 4,503 3,960 2,145 Convenience Drugstore/Pharmacy 10,920 10,860 16,668 4,977 Supermarket 50,420 49,071 51,495 23,300 Bakery 1,990 4,000 ~ 1,700 Gourmet Grocery 18,000 ~ ~ ~ Wine/Liquor 3,440 ~ 6,237 2,920 Personal Services Day Spa 2,875 ~ 2,563 3,060 Women's Hair Salon 1,400 1,450 1,250 1,361 Nail Salon 1,200 ~ 1,200 1,200 Health Club 10,249 9,548 5,508 10,249 Mail/Packaging/Photocopying 1,278 1,240 ~ 1,236 Tailor/Alteration 950 ~ 900 1,035 Video Rental 6,000 6,333 4,240 4,733 Drycleaners 1,800 ~ 1,800 1,649 Day Care 4,000 ~ ~ 3,901 Laundry 2,114 ~ 2,150 1,955 Restaurants Restaurant with Liquor 5,204 6,669 5,600 3,362 Restaurant without Liquor 3,581 6,500 3,025 2,625 Bar/Cocktail Lounge 3,821 ~ ~ 3,821 Ice Cream Parlor 1,137 1,144 1,137 1,116 Coffee/Tea 1,578 1,650 1,624 1,400 Entertainment - Cinema 35,022 37,161 35,022 21,250 Source: Urban Land Institute, "Dollars and Cents of Shopping Centers" Lake Grove Market Analysis ♦ Retail Market Analysis 30
  33. 33. Appendix C. Shopper Survey Results Section 1: Shopping & Services in Lake Grove 1. Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? (131 respondents) Most respondents choose to do their non-grocery shopping at Washington Square (53.4%). Bridgeport Village is the next most popular shopping destination (29.8%). Of the 33 respondents who chose ‘other,’ popular answers include Tigard, Tualatin and Clackamas Town Center. Lake Grove Market Analysis ♦ Retail Market Analysis 31
  34. 34. 2. What types of merchandise are you currently buying on the Internet that you would purchase locally if it were available? (95 respondents) Of the 95 respondents, 23 suggest that they would buy books locally if there were more availability. Clothing is the next most popular choice of 17 respondents. Nineteen of the 95 respondents state that they do not shop on the internet. 3. What kinds of HOUSEHOLD GOODS do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: Furniture, appliances, linens, kitchenware, garden supplies, etc.) (93 respondents) Kitchenware and linens are the most commonly requested household goods, requested by 30 and 20 respondents respectively. Hardware is also commonly requested among 17 respondents. Thirteen respondents suggest that Lake Grove could use more gardening supplies. 4. What kinds of APPAREL do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: women's men's casual, business, children's teens, etc.) (95 respondents) Thirty-three respondents believe that Lake Grove could use additional women’s clothing stores. Twenty-one respondents also suggest more men’s clothing stores are necessary. Of the 95 respondents, 23 specifically mention casual style clothes specifically. 5. What types of SPECIALTY MERCHANDISE do you think we are missing or need more of in the Lake Grove Shopping District? (ex: sporting goods, music, camera, electronics, books, etc.) (99 respondents) Reflecting the same answers as in question two, 44 respondents suggest that Lake Grove could benefit from additional book stores. Twenty-two respondents request a sporting goods store. Three respondents mention that the previous sporting goods store in Lake Grove (Joe’s) recently closed. 6. What kinds of CONVENIENCE MERCHANDISE and PERSONAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: grocery, dry cleaning, DVD rental, hair salons, etc.) (69 respondents) Respondents most commonly suggest that Lake Grove does not need any additional convenience merchandise or personal services. The low response rate of this question compared to other questions about needed goods and services seems to further the case that many Lake Grove residents are satisfied with the current level of service. Lake Grove Market Analysis ♦ Retail Market Analysis 32
  35. 35. 7. What kinds of GENERAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: computer repair, day care, copy center, bank, legal, medical, appliance repair, etc.) (64 respondents) Like the previous question, many respondents suggest that they are happy with the current level of general service. Those who did make additional suggestions indicated that computer and appliance repair, as well as a copy center would be welcome in Lake Grove. 8. What HEALTH SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: dental, chiropractic, naturopathic, vision care, pediatric care, general health care, etc.) (66 respondents) Thirty-four respondents state that the current selection of health services in Lake Grove is adequate. Eight respondents suggest that Lake Grove could use additional general health care facilities and six suggest new urgent care centers. 9. In your opinion, what types of RESTAURANTS AND CUISINES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: bakery, family, coffee, ethnic, brewpub, etc.) (98 respondents) Respondents suggested a variety of different restaurant types, the most common of which was a brewpub (32 respondents). Nineteen respondents suggested both ethnic and/or traditional bakeries. Twelve respondents specifically mentioned Indian food as a desired ethnic restaurant, more than any other specific style. 10. What kinds of LEISURE/ENTERTAINMENT activities do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: gym, art galleries, music events, recreation, etc.) (79 responses) More than any other leisure activity, twenty respondents desire music venues in Lake Grove. Thirteen respondents believe that a gym would be welcome in Lake Grove. Fifteen respondents suggest additional art galleries are necessary. 11. Some of the above merchandise and services may be available locally. Please explain why you may not be buying these products or services in the Lake Grove Shopping District if you are aware of them. (78 respondents) “In several cases, it's all about driving and parking. If the area was more pedestrian and bike friendly, it would help. We do grocery shopping occasionally, my barber is there, and we frequent a few restaurants from time to time.” Lake Grove Market Analysis ♦ Retail Market Analysis 33
  36. 36. “I eat at many places and do my grocery shopping in Lake Grove. Camera, Gardening supplies, Furniture, and Gyms are too expensive.” “I like to shop local but sometimes it's more expensive. Things like furniture and clothing are not reasonably priced. In this economy we need stores that are offering competitive prices.” “Pricing. We patron local business when possible, and this area is specifically a destination-bound stop. I wouldn't consider getting out of my car and walking around.” “Cost could keep us driving further afield, but buying local is important. Better ads for LG shopping needed.” “There are a lot of services already offered in Lake Grove but the quality is all over the map. Not enough clustering of businesses so if you prefer to walk and not drive, you can only get to maybe one or two places you need to go. This area is NOT particularly pedestrian friendly. Without a "center" opportunities for music events etc. are limited. If we're keeping the WEB, let's use it better. That's a huge lawn that could be used for outdoor gatherings.” Section 2: Shopping & Business Preferences 12. What are the best times for you to shop? (Please pick the top 3) (112 respondents) Unlike respondents from other areas, Lake Grove respondents prefer to shop during normal work hours (48.2%). Next to weekdays between 8:30 AM and 5:00 PM, respondents prefer to shop on Saturdays. Respondents least prefer shopping on Sunday mornings. Lake Grove Market Analysis ♦ Retail Market Analysis 34
  37. 37. 13. Currently, what are the major ADVANTAGES of shopping or doing personal errands in the Lake Grove Shopping District? (Please check the top 3) (111 respondents) The majority of respondents cite the convenient location of businesses as the primary advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to support local businesses (73.0%). Proximity to public transportation (0.9%), selection (4.5%), and prices (10.8%) are the least cited advantages of shopping in Lake Grove. 14. Currently, what are the major DISADVANTAGES of shopping or doing personal errands in the Lake Grove Shopping District? (Please check the top 3) (106 respondents) Mirroring the previous question, the majority of respondents cite a poor selection of goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of shopping in Lake Grove. 15. W h a t c a n L a k e G r Lake Grove Market Analysis ♦ Retail Market Analysis 35
  38. 38. ove Shopping District merchants do to improve their stores? (Please check the top 3.) (105 respondents) More than half of respondents suggest that Lake Grove merchants can improve their stores by first improving their selection of goods and services (52.8%). An equal amount of respondents also believe that Lake Grove stores can be improved through lowering prices and improving appearance (43.4%). 16. What identity or image would you like to see Lake Grove create for itself as a unique business and shopping district? (77 respondents) “More pedestrian friendly, where one could park and walk around.” “A local "main street" shopping experience. Make the area more pedestrian friendly. Limit left turns onto Boones Ferry.” “There is nothing keeping me chained to Lake Grove. I have stayed here for 30 years because I love it. My single greatest concern is that your organization will do something to transform it into a cookie-cutter place that looks like everywhere else. Why do we need all those goods and services in Lake Grove? Why don't we just mow down a big section of the village and build a Target there? This survey, like so many others put out by the City of L.O., presupposes that everybody wants to make a big change, and it is an incorrect supposition. I wish you people would stop pandering to developers and to business owners like Mike Buck and Vic the auto guy who are just looking for their big chance to cash in.” “Not another Bridgeport Village! Foster local business! Identify with customer base - neighbors and other local merchants - and create community. People shop where they feel most comfortable. Work to make the shopping district feel like home.” Lake Grove Market Analysis ♦ Retail Market Analysis 36
  39. 39. Section 3: General Information 17. Please check your age. (111 respondents) Almost half of respondents are 55 years of age or older (44.1%). Respondents under the age of 24 make up only 1.8 percent of the total. 18. Please tell us your home zip code. (110 respondents) Of the 110 respondents, 71 live in the 97035 ZIP code. Thirty-two respondents live in the 97034 ZIP code. 19. If you work outside the home, please tell us the ZIP code of your work address. (62 respondents) Of the 62 respondents, 28 work in the 97035 ZIP code. Eight respondents work in the 97221, 97222, 97223, and 97224 ZIP code. 20. Please share any other comments below. (70 respondents) “Make Boones Ferry like NW 23rd. Cool shops and eateries. Lots of foot traffic. Hip, happening place people would actually want to go.” “Wizer's Groceries is the epitome of overall service, quality and customer friendliness. Their sales offset higher prices at other stores. If you use their sales you will balance shopping prices at the big box grocery stores. Wizers should be a key cornerstone of Lake Grove.” “I think we have the things needed most in convenient locations like; Grocery Stores, Restaurants, Post Office, DMV, AAA, Dentists, Chiropractors. It's only the extras that aren't bought on a regular basis like; Camping gear, Craft supplies, Furniture, Electronics.” Lake Grove Market Analysis ♦ Retail Market Analysis 37
  40. 40. “Very concerned about the traffic & parking impacts on the transitional streets leading to the adjacent neighborhood associations. Understand that the Village Center Plan recommendations and code amendment overlays do not ‘trump’ the local neighborhood association plans. Recognize that the adjacent neighborhood associations are part of the primary stakeholders as the LGVC Plan begins to unfold and that the NA's need to be kept informed and involved all during this period.” “Boones Ferry is an unappealing, very ordinary suburban commercial strip. There is an unused trail paralleling Boones Ferry; it would be nice to walk it rather than drive (who would want to walk) on Boones Ferry. I do like the landscaping along the street in front of Lake Grove School.” “I love the Lake Grove swim park! This is a treasure and we should do everything we can to preserve it.” “Please also be very cautious about changing traffic flow. I have serious concerns about not being able to turn left across on-coming traffic. Having to drive an extra half mile and turn could be enough to keep me away.” Lake Grove Market Analysis ♦ Retail Market Analysis 38
  41. 41. Appendix D. Business Owner Survey Results Section 1: Business Information & Operations 1. What is the nature of your business? (33 respondents) More than any other category, 30.3 percent of respondents reported that their business provides professional services. Restaurant and financial/insurance/real estate businesses are operated by 18.2 percent of respondents. “Other” businesses account for 24.2 percent of respondents and include heath care, auto repair, and education facilities. 2. How long have you been operating this business in Lake Grove? (32 respondents) Most respondents (68.8%) report operating their business in Lake Grove for more than ten years. No respondents reported opening a business in Lake Grove within the past year. Just over thirty percent of respondents have operated their business for less than ten years. Lake Grove Market Analysis ♦ Retail Market Analysis 39
  42. 42. 3. Name up to 3 advantages or strengths you associate with doing business in the Lake Grove shopping district. (26 respondents) Most respondents note that their proximity to a variety of freeways is a strength of doing business in Lake Grove. Specific freeways mentioned include Highway 217 and Interstate 5. Other respondents note that Lake Grove’s attractive setting, small town feel, and sense of community are all business strengths. Three respondents specifically mention Kruse Way as helpful to their business. 4. Please share any disadvantages (if any) to doing business in Lake Grove. (24 respondents) Most respondents reported that a lack of accessibility is a disadvantage to doing business in Lake Grove. This is demonstrated by a lack of bike lanes, bus service, and inhospitable pedestrian conditions. “No bike lanes; lots of car traffic with no turn lanes and then bunches up.” “Boones Ferry Road traffic is difficult and dangerous. Downtown Lake Oswego is treated more favorably by the city council. Chamber of Commerce favors downtown as well.” “Crossing the road – not enough U-turns or turn bays.” “Not as walkable as I would like.” “Getting across Boones Ferry Road! Although adequate food and grocery and auto resources exist, there are insufficient retail stores to serve all needs.” 5. How would you characterize your current business activity level (i.e., last 12 months of operation)? (30 respondents) Almost half of respondents report steady activity (43.3%). Thirty percent report moderate growth. Just over a quarter of respondents report declining activity (26.7%). No respondents report rapid expansion. Lake Grove Market Analysis ♦ Retail Market Analysis 40
  43. 43. 6. Which description below best characterizes your plans to expand or reduce your operation in the next one to two years? (30 respondents) An overwhelming majority of respondents (60.0%) do not plan on making any changes to their business in the next one to two years. However, almost a quarter of respondents plan on expanding their operations soon (20.0%). Only one respondent will reduce operations and one plans to relocate. 7. Please check any type of investment or improvement you have made in your business in the last two years. (30 respondents) Forty percent of respondents have added additional products and services to their inventory. Just over forty percent of respondents added additional promotional activities (43.3%). Just over a quarter (26.7%) report having made physical improvements to their facility’s layout or design, and 30 percent made system improvements. Lake Grove Market Analysis ♦ Retail Market Analysis 41
  44. 44. 8. Please check any type of investment or improvement you plan on making in the next one to two years. (29 responses) Like the previous question, about forty percent (41.4%) of respondents plan on making physical improvements to their stores or offices. Less than a quarter of respondents (20.7%) do not plan on making any improvements to their business in the next two years. Lake Grove Market Analysis ♦ Retail Market Analysis 42
  45. 45. 9. In addition to a strong economy, what are the critical factors for the success and expansion of your business (check ALL that apply) (30 respondents) Most respondents cite public access as the most critical contributing factor to the success of their business (60.0%). Qualified labor (33.0%) and up-to-date equipment/technology (33.3%) are also commonly listed as critical factors. An equal number of respondents stress the importance of financing, foot traffic, and complementary businesses (23.3%). Lake Grove Market Analysis ♦ Retail Market Analysis 43
  46. 46. 10. What are some of the major issues or obstacles facing your business today? (Please check the TOP FIVE priority issues.) (28 respondents) A strong majority of respondents reported that the current condition of the economy is the largest obstacle faced today (75.0%). General operating cost was the next most frequently reported obstacle (50.0%), followed by a lack of customer traffic (32.1%). 11. Please expand on any of your answers to the question above. If you checked "City/County/State code or regulations," please explain the issues or obstacles (10 respondents). “Signage - I am in a building where all the signs need to be the same - why do each of us need to get a permit for a sign - it should be the landlord’s responsibility for the permit and we just get a sign to match all others ( I have been there 2 years and still no outside signage - permit costs too high for a small business person.)” “As an attorney with 29 years on Boones Ferry Road I have no real obstacles except occasionally government relation affecting not me, but other businesses trying to develop. My biggest concern is pedestrian access up and down Boones Ferry, and particularly getting across the four lane road.” Lake Grove Market Analysis ♦ Retail Market Analysis 44
  47. 47. “Fewer customers than before. Building needs a frontage makeover. Insurance & other costs need to be reduced. Parents who have lost their jobs can't afford our goods and services.” 12. To keep your business healthy and competitive, which of the following types of information or assistance are important to your company’s growth? (Please check ALL that apply) (13 respondents) Most respondents report that marketing/advertising information is important for their business to remain healthy and competitive (55.6%). The next most popular response is market property and façade improvements (44.4%), followed by lean business practices (37.0%). No respondents feel like they need help with loan preparation. 13. Are you interested in participating in a cooperative business marketing effort to attract customers to the Lake Grove District or to encourage residents to shop locally? (28 respondents) Yes – 67.9% (19 respondents) No – 32.1% (9 respondents) Lake Grove Market Analysis ♦ Retail Market Analysis 45
  48. 48. Section 2: The Future of the Lake Grove Shopping District & Business in Lake Grove 14. What identity or image would you like to see the Lake Grove Shopping District develop for itself as a unique business district attractive to residents, employees and visitors? (21 respondents) “We need to tame the four lane street and make the corridor neighborhood friendly visually and behaviorally. To attract people here, the place has to have attractions and be attractive utilizing the natural features as much as possible. We need an identity manifested in a logo and an inviting gesture of welcome.” “Unique building facades that tie all businesses together – but not a copycat of downtown Lake Oswego.” “A more walkable area where people can park and do a number of activities, like groceries, coffee, tutoring all at the same time.” “I would like it to become more pedestrian friendly so that we can have more retail opportunities succeed, and more human life in the business corridor now dominated by auto traffic.” 15. What types of businesses would you like to see the Lake Grove Shopping District attract or grow to improve its business mix? (21 respondents) Respondents suggest that they would like to see additional apparel shops, a book store, and an office supply store in addition to more small retail shops. “Lake Grove needs an image similar to downtown LO. Restaurants, entertainment, shops, theaters. It makes me want to have an experience here.” “A more walkable area where people can park and do a number of activities, like groceries, coffee, tutoring all at the same time.” “Neighborhood-type businesses for local residents. We don’t need more traffic from outside the area. There are too many cars on Boones Ferry now.” 16. What could Lake Grove businesses do to attract more local residents? (21 respondents) “Fliers promoting what we have. A Lake Grove Business Directory. Special events that block off the street and rout through traffic down 217 to the freeways.” “Advertise to tell us what is available in the area. Maybe a business fair for residents to see what is in their area. Many LG businesses are closed on Sunday - they could stay open at least for the afternoon.” Lake Grove Market Analysis ♦ Retail Market Analysis 46

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