A retail study group in the Moose Lake region learned of potential marketing opportunities in the area on November 24 when they met to review an analysis on the retail trade area. John Bennett, educator at the Center for Economic Development with the University of Minnesota Extension in Duluth, presented the exhaustive marketing summary that includes profile data on residents who either permanently reside or seasonally dwell in the vicinity.

In compiling information derived from the 2000 United States census and multiple data sources, the report uses the Market Area Profile (MAP) that was devised by the extension to assist Minnesota communities in developing retail and service sectors. It details the profiles and lifestyles of both local and seasonal customers in the local market area that includes Barnum, Moose Lake, Willow River, Kettle River, Holyoke, Kerrick, and Sturgeon Lake.

The reports for each type dweller cover a wide range of profile classifications including income, housing and home values, population, age, and employment. The reports also classify neighborhoods and lifestyles within the communities to emphasis the social activity and family units of those who shop in the area.

“It’s important, as we market, to find out what’s needed in this area,” said Pat Oman, Director of Economic Development in Carlton County. For the past several years Oman has been cooperating with the city in developing an economic growth plan for the local trade area. The retail study group met last spring to organize and define the trade area, and in August preliminary data was reviewed.

Last week the study group realized the significant differences in lifestyles and profiles between local and seasonal residents who potentially shop in the Moose Lake region. The market analysis, funded by Carlton County, covers 11,010 people living in 4,151 households in the market region. Results show that about 46 percent of the housing units are seasonal. “That number could be as high as 48 percent,” said Bennett.

Local vs seasonal styles

The lifestyle profile summary for local residents denotes three broad market segments, from a possible 65 socioeconomic groups, according to a detailed national profile. Those segments are rural resort dwellers (rural, non-farm areas), midlife junction (suburbs), and rooted rural. About 80 percent of the population in the Moose Lake area, both seasonal and local, lies within these three segments.

The profile summary for seasonal residents denotes the three market segments as sophisticated squires (cultured country living), main street (suburbs of smaller metro cities), and up and coming families (affluent families with young children). Seasonal residents, who are mostly concentrated in select suburban and ex-urban areas of the Twin Cities, “contribute significantly to the local economy of the Moose Lake trade area.”

Bennett said that since the seasonal dwellers comprise about 46 percent of the trade area, “You want to pay attention to these people. There is lots of opportunity that could be tapped and has not been uncovered yet.”

The summaries further explain the market potential of customers in each group, based on the mix of demographics and lifestyles that reveal their media, leisure, and travel habits. The analysis shows, said Bennett, “That the people in the Moose Lake trade area are active and get out, and want to do things -- more so than on the national average.” The differences in lifestyles between local and seasonal residents can be used to inform businesses how to meet those needs, as noted in the report.

The final portion of the market report focuses on the retail gap analysis, which “estimates the potential number of businesses across 73 store categories based on the spending of the area residents (demand) compared to the number of stores in the trade area (supply).” Consequently, those categories where demand is greater than supply are “opportunities for business development.”

Applying the analysis

Bennett listed a few of the ways local businesses can apply the data from the analysis, e.g., learn local customer needs, identify gaps, plan, advertise, and inventory. He and Oman plan to hold a public workshop for local entrepreneurs, businesses, and interested citizens at which the market analysis will be presented for open discussion as it applies to the area’s marketing potential. The workshop is expected to be scheduled for sometime in December.

Oman expects to use the summary as a step in a larger vetting process and talk extensively with city officials and retailers, as well as survey customers and residents. He said, “We’re not going to solely go by these numbers.”

Oman explained that after further review of the analysis, “There may be demand in a certain area, but we may find that it is already met in the Moose Lake area.” Conversely, he said that the analysis may not show a certain demand, but the community may find there is one. “We’re looking to find diversity,” said Oman.

While any potential business will likely perform its own vetting process, Oman intends to inform them of the extensive market analysis that has already been done. “We will pre-qualify stores that fit the Moose Lake area and let them know of the (county and city) funding mechanisms available.”

Oman said that he already has been pre-qualifying certain companies, “And we will be doing a lot more in 2010.”