Wikstrom Economic & Planning Consultants, Inc. Logan March 2004 Business Growth in Downtown Logan.

Wikstrom Economic & Planning Consultants, Inc.

Logan

March 2004

Business Growth in Downtown Logan


Logan

3 PROJECTS

FINDINGS AND RECOMMENDATIONS

Sales leakage analysis (2001 and 2003)

Community surveys – 2600 completed

Downtown business owner surveys -- 78 completed


Logan

From 2001 to 2003, sales growth in Downtown outperformed sales growth in Logan

FINDINGS

Downtown: $209,000 increase

Logan: $1.3 million decrease

CONGRATULATIONS!


Logan

Historical Growth by City2002 Rate

Clarkston $315,612 6%Cornish $351,807 -7%Hyde Park $16,451,857 20%Hyrum $17,835,254 2%Lewiston $5,501,343 1%Mendon $681,431 11%Millville $2,868,717 11%Newton $176,145 -26%Paradise $497,340 5%Providence $7,881,987 8%Richmond $4,314,276 3%Amalga andSmithfield

$40,149,917 4%

Trenton $265,834 -25%Wellsville $3,719,422 -6%North Logan $262,434,670 9%Logan $422,097,205 0%


Logan

DOWNTOWN GROWTH:

ClothingInfantsShoesWomen’s

JewelryFloristsMiscellaneous RetailAuto Repair


Logan

DOWNTOWN DECLINES:

Lumber and HardwareEntertainmentSporting GoodsBooksFurnitureComputer/Software stores


Logan

Average increase: 32 percentAverage decrease: 18 percent

Question 3 - How have your sales changed over the past three years?

38%

23%

27%

11%

Increased

Decreased

About the same

Been in business lessthan 3 years


Logan

FUTURE PLANS TO EXPAND

Question 6 - Do you have plans to change business size in the near future?

65%

35%

50%

20%

30%

0%

Expand Reduce No change

Increase Decrease


Logan

Regional Retail Destination – Logan Capture Rates

Building and GardenGeneral MerchandiseFood StoresMotor VehiclesApparelFurniture/ElectronicsEating OutMiscellaneous RetailHotels/LodgingPersonal ServicesBusiness ServicesAuto and Other RepairEntertainment

221%165%110%105%170%106%162%205%56%110%38%116%43%


Logan

Regional Retail Destination – Logan and Cache Co. Capture Rates


221%165%110%105%170%106%162%205%56%110%38%116%43%

127%147%83%66%71%83%85%92%33%63%44%101%68%


Logan

Regional Retail Destination – Cache Co. Capture Rates and Sales Leakage


127%147% 83% 66% 71% 83% 85% 92% 33% 63% 44%101% 68%

-$21 M-$43 M-$ 8 M-$ 8 M-$10 M-$ 6 M

-$ 3 M-$23 M

-$ 8 M


Logan

What Shopping Items Would You Most Like to be Able to Buy in Historic Downtown?

• Women’s clothing• Shoes• Specialty clothing• Men’s clothing• Children’s clothing• Unique gifts• Crafts, gifts, souvenirs,

antiques• Plants, flowers• Groceries• Home décor• Fast food• Restaurants

• Sporting goods• Healthcare• Repair shops• Sewing/needlework• Music• Photography/camera• Furniture• Drugstore•

Electronics/computers/software

• Picture framing• National chains• Auto supply store


Logan

Regional Retail Destination – Main Street as Percent of Logan Sales


1% 0% 1% 1%14%14%17%18%30%35% 2% 8%13%


Logan

Regional Retail Destination – Main Street Miscellaneous Retail as Percent of Logan Sales

Drug StoresUsed MerchandiseSporting GoodsBook StoresStationeryJewelryHobby, Toy & GameGifts, NoveltiesSewing, NeedleworkFlorists

0%41%10%25% 1%70% 8%37%94%48%

Main StreetAs % of Logan


Logan

0% 5% 10% 15% 20% 25% 30%

Employment

Entertainment

Shopping

Post Office

Restaurants

Library

Other

Why Are People Going to Downtown Logan?


Logan

Perceptions of Downtown

Businesses with Increased v. Decreased Sales


Logan

Question 5 - How many employees do you employ?

19%

33%

15%11%

22%

75%

0% 6%13%

6%

1-5 6-10 11-15 16-20 Over 20

Number of Employees

Increase Decrease


Logan

Question 7 - What best describes your customer base?

25%

15%

43%

86%

43%

29%

57%

47%

88%

41%

Downtownemployees

USU students Logan Cityresidents

Valley residents Outside of valleyresidents

Increase Decrease


Logan

Questions 8 and 9

36%

11%8%

11%

3%8%

17%

8% 8%

14%11%

48%

11%14%

9% 9%

20%

7% 0%5%

2% 2%

Restaurants,night life

Specialtyshops,

boutiques

Drugstore Brand namestores

Electronics Health food,medical

profesionsl

Clothing,shoes

Hardware Galleries Any retail Receptioncenter,

conferencecenter, hotel

Question 8 - What business not currently downtown would enhance your business?

Question 9 - What businesses not currently downtown would you use?


Logan

Question 10 - Is your business affected by its proximity to other businesses?

80%

20%

56%

44%

Yes No

Business experiencing an Increase Business experiencing a Decrease


Logan

Question 11 - Where is your major competition located?

5%

30%

25%

35%

5%

20%

7%

53%

0%

20%

Downtown South North Out of valley Have no competition

Experiencing an increase Experiencing a decrease


Logan

8% 4%10%

5%

74%

Historic downtown Logan Layton Hills

Salt Lake City Ogden/Riverdale

North of 4th North

Where is the Community Shopping for Non-grocery Items?


Logan

20%

6%7%

11%

31%

7%

13%

Price,discount,

bulk

Service Financialresources

Parking Location,size, clean,

new

Advertising Uniqueproduct,volume

Question 12 - What is your competitions greatest strength?


Logan

0% 10% 20% 30% 40% 50% 60%

One-stop shopping convenience

More variety/better selection

Better prices

Easier parking

Better shopping hours

Other

What are the Greatest Strengths of Shopping Outside of

Historic Downtown Logan?


Logan

Major Reason For Shopping at a Certain Location

• Historic Downtown Logan

• Familiarity with businesses

• Layton Hills

• Selection of Merchandise

• Salt Lake City


• Ogden/Riverdale


• North of 4th North

• Price/value


Logan

Frequent shoppers

Seldom shoppers

Broad selectionExtended shopping hoursPrice/valuePromotionsParking

Quality of businessesCustomer serviceRetail food availabilityEntertainment

IMPORTANCE FACTORS


Logan

0% 10% 20% 30% 40%

parking

selection/appeal

expensive

not familiar

don't shop often

distance

hours of operation

Other

Why People Seldom or Never Shop Historic Downtown


Logan

27%

4%

24%

2%

11%

7%

No customerservice,

inexperience

Lack of brandname stores

Lack ofmerchandise,

quality

Parking Location Price

Question 12b - What is your competition's greatest weakness


Logan

Question 13 - What Historic Downtown Main Street improvements are most important to you?

3.7

3.3 3.4

4.3

3.4

3.0

3.73.43.5

2.7 2.7

3.9

2.6 2.5

3.12.9

Sidewalks Trees Planters Lighting Benches Medians PedCrossings

GarbageCans

Businesses showing an Increase Businesses showing a decrease


Logan

Question 14 - What is the most important project the Main Street Program/Downtown Alliance can undertake to help your business?

40%

10%

10%

5%

35%

5%

5%

5%

45%

0%

0%

18%

0%

0%

9%

0%

0%

9%

0%

0%

0%

0%

Parking

Bring people, growth

Marketing, advertising

Control traffic/pedestrians

Continue renovation/beautification

Financial support

Activities, festivals

Hotel, convention center

Restaurants

Big name brand stores

Financial support

Businesses showing an increase Businesses showing a decrease


Logan

The Single Most Important Change ThatCould Improve Historic Downtown

Parking – 52%More selection – 11%Improve traffic flow – 10%Restaurants – 6%Gathering place – 6%Renovation of store fronts – 6%


Logan

Question 15 - How interested are you in receiving an eduction on...

2.4

3.3

2.8

2.8

2.8

2.6

3.0

3.3

3.2

3.8

3.6

2.9

2.6

2.4

3.1

3.5

Financial assistance

Marketing

Business planning

Retail display

Building design

Landscaping

Peer review

Salesmanship

Businesses showing an increase Businesses showing a decrease


Logan

Question 16 - What is the greatest advantage to being located in Downtown Logan?

6%

48%

11%

21%

3%

2%

11%

2%

3%

10%

Revitalize, progress, potential

Location

Historical tradition

Unique, variety, ambiance

Local ownership

Close to schools

Traffic, walking

View

None

Other


Logan

Question 17 - What is the greatest disadvantage?

12%

55%

18%

3%

5%

2%

2%

3%

10%

0%

Location

Parking

Traffic, congestion

No marketing

Limited space

Price of rent

Old buildings

No owner pride

None

Other


Logan

What Are Historic Downtown Logan’s Strengths?

Ambiance, atmosphere, unique, historicSelection/variety of storesEntertainment/theaterAccess/convenienceRestaurantsCustomer ServiceSpecialty storesPedestrian friendly

44%12%9%9%9%9%8%6%


Logan

The Greatest Weaknesses of Historic Downtown Logan’s Business District

Lack of parking – 54%Lack of selection – 30%Higher prices – 16%


Logan

Question 18 - Do you own or rent your building?

38%

62%59%

41%

Own Rent

Business experiencing an Increase Businesses experiencing a decrease


Logan

Question 20 - What is the age demographic of your typical customer?

65%

6%

6%

0%

57%

43%

0%

0%

24%

0%Under 19

Ages 19 to 34

Ages 35 to 54

Older than 55

Don't have a clue

Experincing an increase Experiencing a decrease


Logan

Question 21 - What is the gender of your typical customer?

11%

37%

52%

0%13%

88%

Male Female Even mix

Increase

Decrease


Logan

Question 23 - Rate the effectiveness of the following promotions for your business

2.32.5

3.0

2.7

2.3

1.1

2.12.2

1.51.7

Gardner's Market Sidewalk Sale Utah Festival Opera Gallery Walk Gingerbread HouseWalk

Increase Decrease


Logan

00.5

11.5

22.5

33.5

44.5

0 2 4 6 8 10 12

Utah Festival Opera Christmas window displays

Tabernacle presentations Gingerbread house displays

Sidewalk sales Chocolate Fest

Eccles Theater The Cache Valley Cruise-In

Banquets Gardener's market

How Important Are These Events to Historic Downtown?

1 = not important; 5 = important


Logan

Question 22 A and B- How important are each of the following factors to your customers and how does downtown perform?

1.0

2.0

3.0

4.0

5.0

1.0 2.0 3.0 4.0 5.0

Parking

Crime Control

Quality of Merchandise

Promotions

Cleanliness

Price / Value Familiarity with business

Shopping Hours

Customer Service

Selection of Merchandise

Not Important Very Important

Po

or

Exc

elle

nt


LoganCommunity Survey – Logan Performance/Importance

0

0.5

1

1.5

2

2.5

3

3.5

4

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Importance

Per

form

ance

Very ImportantNot Important

Poo

rE

xcel

lent

Entertainment

Retail Food Availability

Promotions

Extended Shopping Hours

Parking

Customer Service

Quality of Business

Broad Selection of Merchandise

Price / Value

Wikstrom Economic & Planning Consultants, Inc. Logan March 2004 Business Growth in Downtown Logan.

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