A Retail Gap Analysis of Main Street
Before starting, expanding, or moving your business, it’s vital that you conduct a gap analysis (a supply & demand study) of the market. About 5,000 people are living within a 1-mile radius of Ridgefield’s Town Hall. They have a median household income of about $105,000. That’s a lot of spending power for a relatively small group of people!
A retail gap analysis examines an area to determine market saturation and opportunity. For example, within that same 1-mile radius there is a $3.4 million gap in home furnishings sales. This means that, on average, $3.4 million per year is leaving the community because there aren’t enough stores to fill the need. However, there is a $10.1 million surplus in restaurants. Does this mean that there are too many eateries? Or does it mean Ridgefield is a culinary destination and can support an abundance of restaurants? That answer comes down to market knowledge, and I’m happy to say I believe the latter is true.
Next time you’re looking for commercial space, be sure to ask your broker for a gap analysis – your business will thank you.
*This article was written as part of the Ridgefield Advisory Council's 'Ask the Experts' series. It was also published on Patch.com - check it out!