North Fairmount Market Research Analysis

Market Demand Analysis

• We have defined the North Fairmount market area as Camp Washington, South
  Fairmount, North Fairmount/English Woods, South Cumminsville/ Millvale, and Fay
  Apartments.
• The five retail business types with the largest aggregate expansion potential in the
  North Fairmount market area are eating places, auto repair shops, recreation facilities,
  used merchandise, and drug stores.
• The most prevalent types of retail establishments in this market area are grocery and
  miscellaneous foods, eating places, and auto services.
• Residents in the market area spend the greatest portion of their money on grocery and
  miscellaneous food items, transportation, dining out, women’s apparel, and TV, radio,
  and sound equipment.
• Residents in the market area spend the greatest portion of their money at grocery
  stores, eating places (dining out), department stores, gasoline or service stations, and
  drug stores.
• Residents in the North Fairmount market area have above average interest in
  purchasing items from convenience and drug stores and buying music.
• There are two broad consumer groups in the North Fairmount market area that may
  be targeted – women and children. Females outnumbered males 54 percent to 46
  percent in 1998, explaining the strong demand for female apparel. The largest age
  group in the market area is children under 15 years, explaining the strong interest in
  children and infant apparel.
• Aggregate income in the market area in 1998 was $102 million. Aggregate
  expenditures in the market area in 1998 were $62 million, implying that market area
  residents spend approximately 39 percent of their income outside of the market area.
• According to 1990 data, residents most commonly worked in retail trade,
  manufacturing, and professional and related industries. The most common
  occupations for the market area were technical/sales/administrative support, service
  occupations, and operator/fabricator/laborers.

Demographic Trend Analysis

• Both the population and the number of households have declined in the market area
  since 1990. This trend is expected to continue – population is projected to decline
  two percent annually between now and 2003. The North Fairmount market area
  consisted of 16,156 people in 1998 and this is expected to decline to 14,915 in 2003.
• The North Fairmount market area is 69 percent black and 30 percent white.
  However, each neighborhood showed polarity in their racial make-up. Fay
  Apartments and South Cumminsville were 96 percent black, North Fairmount was 81
  percent black, while South Fairmount and Camp Washington were 24 and 20 percent
  respectively.
• The most prevalent household type in the market area is a family with a child and
  single parent, accounting for 36 percent of market area households. Married couples
  accounted for 25 percent of the households.
• Average household income for the entire market area averaged $17,890 in 1998.
  Camp Washington held the highest average at $26,410 and Fay Apartments held the
  lowest average at $12,381.

Recommendations

• Eating places would be partially supported by residents of the North Fairmount
  market area since this product category ranks third by total expenditures.
• Residents have an above average demand for convenience store items. This highway
  dependent retail may thrive in the area and can be included as a possible candidate
  under miscellaneous retail expansion.
• Owning an automobile ranked highly as a preference. An auto repair shop would
  benefit from the commuter traffic and close proximity to the highway.
• There appears to be sufficient demand for a drug store. It is rated fifth in money
  spent per store in the Camp Washington and South Fairmount market areas.
  Furthermore, only one drug store exists in the market area, and the neighborhood of
  North Fairmount has no drug stores.
• A women’s and children’s apparel store could match the needs of the neighborhood.
  Both are rated highly in consumer preferences and cater to the neighborhoods’
  population base. However, because income levels remain below the national average,
  the apparel should be sold at discount prices.