CITY OF LOCKHART Retail Market Analysis December 11, 2008 Aaron Farmer National Project Director.

CITY OF LOCKHART

Retail Market Analysis

December 11, 2008

Aaron FarmerNational Project Director

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Lockhart – PRIMARY TRADE AREA MAP / POPULATION

Population: 14,433By Race/Ethnicity (%):

White 67.76Black/Afr. Am. 11.16Other 21.06Hispanic Origin 46.62

Median Age: 34.30 Avg HH Income: $52,656Per Cap. Income $17,770

Population: 14,433By Race/Ethnicity (%):

White 67.76Black/Afr. Am. 11.16Other 21.06Hispanic Origin 46.62

Median Age: 34.30 Avg HH Income: $52,656Per Cap. Income $17,770

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Lockhart – Primary Trade Area

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Lockhart – Secondary/Tertiary Trade Area

Population: 18,189By Race/Ethnicity (%):

White 68.99Black/Afr. Am. 9.49Other 21.51Hispanic Origin 44.80

Median Age: 34.68 Avg. HH Income: $54,893Per Cap. Income $18,457

Population: 18,189By Race/Ethnicity (%):

White 68.99Black/Afr. Am. 9.49Other 21.51Hispanic Origin 44.80

Median Age: 34.68 Avg. HH Income: $54,893Per Cap. Income $18,457

Population: 36,976By Race/Ethnicity (%):

White 69.56Black/Afr. Am. 6.89Other 23.54Hispanic Origin 44.14

Median Age: 34.58 Avg. HH Income: $54,131Per Cap. Income $18,644

Population: 36,976By Race/Ethnicity (%):

White 69.56Black/Afr. Am. 6.89Other 23.54Hispanic Origin 44.14

Median Age: 34.58 Avg. HH Income: $54,131Per Cap. Income $18,644

SECONDARY TRADE AREA TERTIARY TRADE AREA

Lockhart: 10.15%

Primary Trade Area: 10.56%

Secondary Trade Area: 11.65%

Tertiary Trade Area: 9.64%

Growth Projections 2008-2013

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Lockhart – Radials and Drive-Times

5 Mile: 15,983

7 Mile: 18,028

10 Mile: 25,751

5 Mile: 15,983

7 Mile: 18,028

10 Mile: 25,751

5 Minute: 10,822

7 Minute: 15,699

10 Minute: 17,087

5 Minute: 10,822

7 Minute: 15,699

10 Minute: 17,087

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Lockhart – Traffic Counts

•New SH 130 Route to bring a large traffic count.

• Identify specific retail sectors that are underserved

• Identify which retailers can successfully fill these “gaps”

• Identify opportunities for product or service expansion

Retail Leakage “Gap” Analysis

$149 million in potential retail sales in Lockhart’s Primary Trade Area.

$79 million in potential retail sales in Lockhart’s Central Business District.

$68 million leaking out of the Central Business District.

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LOCKHART – RETAIL GAP ANALYSIS SUMMARY

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LOCKHART – RETAIL GAP ANALYSIS SUMMARY (CONTINUED)

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LOCKHART – CBD RETAIL GAP ANALYSIS SUMMARY

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LOCKHART – CBD RETAIL GAP ANALYSIS SUMMARY (CONTINUED)

Psychographics Defined

Your retail trade area’s psychographic profile is a breakdown into one or more of 66 lifestyle segments that identify consumer:• Lifestyles

• Purchasing behaviors

• Media habits

Psychographics

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LOCKHART – PSYCHOGRAPHIC PROFILE

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PSYCHOGRAPHICS – Top Lifestyle Segments of Lockhart Trade Area

32 New HomesteadersUpper-Mid, Younger w/ KidsYoung, upper-middle-class families seeking to escape suburban sprawl find refuge in New Homesteaders, a collection of small rustic townships filled with new ranches and Cape Cods. With decent-paying jobs in blue-collar industries, these dual-income couples have fashioned comfortable, child-centered lifestyles; their driveways are filled with campers and powerboats, their family rooms with PlayStations and Game Boys.

2007 Statistics:US Households: 2,327,025 (2.05%)Median HH Income: $57,023

Lifestyle TraitsGo to Chuck E. CheeseBuy videos online4-Wheel and Off-Road magazinesNickelodeon TVKia Sedona

Demographics Traits:Urbanicity: Town/RuralIncome: Lower-MidIncome Producing Assets: LowAge Ranges: Age <55Presence of Kids: HH w/o KidsHomeownership: RentersEmployment Levels: WC, Service, MixEducation Levels: High School GradEthnic Diversity: White, Black, Mix

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PSYCHOGRAPHICS – Top Lifestyle Segments of Lockhart Trade Area

48 Young & RusticLower-Mid, Middle Age w/o KidsYoung & Rustic is composed of middle age, restless singles. These folks tend to be lower-middle-income, high school-educated, and live in tiny apartments in the nation’s exurban towns. With their service industry jobs and modest incomes, these folks still try to fashion fast-paced lifestyles centered on sports, cars, and dating.

2007 Statistics:US Households: 2,281,989 (2.01%)Median HH Income: $32,607

Lifestyle TraitsGo to auto racesDrew Carey Show in syndicationKing of the Hill in syndicationWWE Wrestling TVDodge Neon

Demographics Traits:Urbanicity: Town/RuralIncome: Lower-MidIncome Producing Assets: LowAge Ranges: Age <55Presence of Kids: HH w/o KidsHomeownership: RentersEmployment Levels: WC, Service, MixEducation Levels: High School GradEthnic Diversity: White, Black, Mix

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PSYCHOGRAPHICS – Top Lifestyle Segments of Lockhart Trade Area

50 Kid Country, USALower-Mid, Younger w/ KidsWidely scattered throughout the nation’s heartland, Kid Country, USA is a segment dominated by large families living in small towns. Predominantly white, with an above-average concentration of Hispanics, these young, working-class households include homeowners, renters, and military personnel living in base housing; about 20 percent of residents own mobile homes

2007 Statistics:US Households: 1,529,683 (1.35%)Median HH Income: $42,353

Lifestyle TraitsBuy kids’ bicyclesBuy swingsetsBaby Talk magazineToon Disney channelMazda Pickup

Buying Habits:Buy Children’s Cold Medicine,1mo (H) * 299Buy Baby Furniture/Equipment,6mo (H) 284Buy Children’s Athletic Shoes,6mo (H) * 284Buy Children’s Clothes,6mos (H) 260Buy Children’s Bicycles,1yr (A) 208

Buying HabitsHas Medicare/Medicaid (A) 245Grocery Shopping,<$60,1wk (H) 191Use Kelloggs Corn Flakes,1wk (H) * 144Belong to a Veterans Club (A) 142Use Spam,1mo (H) * 139Order from Publishers Clearing House,1yr (A) 129Do Bird Watching,1yr (A) 124Coupon User,0-3 Times,3mo (H)

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PSYCHOGRAPHICS – Top Lifestyle Segments of Lockhart Trade Area

57 Old MilltownsDownscale, Mature Mostly w/o KidsAmerica’s once-thriving mining and manufacturing towns have aged--as have the residents in Old Milltowns communities. Today, the majority of residents are retired singles and couples, living on downscale incomes in pre-1960 homes and apartments. For leisure, they enjoy gardening, sewing, socializing at veterans clubs, or eating out at casual restaurants.

2007 Statistics:US Households: 1,699,060 (1.49%)Median HH Income: $30,680

Lifestyle TraitsWatch soap operasEat at casual/buffet restaurantHallmark channelCBS Evening News TVChevy Cobalt

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Strengthening Your Business

in Today’s Economy

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75% of all retail merchandise transactions take place between 4pm and 11pm and on weekends.

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Provide Exceptional Customer Service

•LISTEN to your customers!

•Train your staff about customer service.

•Make the extra effort. (Don’t just point to the aisle, walk them to it.)

•Give them something extra. (Throw in a coupon for an extra 10% off their next purchase.)

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Are You Targeting Your Customers?

•Survey your customers.

•Find out what products they buy.

•Use the Psychographic Analysis to determine your customers lifestyle behaviors and purchasing habits.

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Be Seen.

Participate in City Events.

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Look to The Internet.

The National Retail Association is forecasting $204 billion in retail sales over the Internet in 2008, while the rest of the retail industry expects sluggish growth.

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Find Similar Businesses That our Being Successful.

•Don’t be afraid to be unique.

•Cater to your customers.

•Avoid competing on price, there will always be a larger store with deeper pockets.

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Don’t take the kids for granted.

•Have a “kid friendly” store.

•By 2010, kids will have around 30 billion in spending power and influence their parents who have some 140 billion in spending power.

•If kids don’t enjoy shopping at your store, don’t plan on their parents coming back.

Thank you…

CITY OF Lockhart

The Retail Coach, LLCP. O. Box 7272Tupelo, MS 38802

662.844.2155 tel662.844.2738 fax

[email protected]

www.theretailcoach.net