Lake Grove District Market Analysis
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Transcript of Lake Grove District Market Analysis
Lake Grove District Market Analysis & Business Development Strategy October 2009
Lake Grove Market Analysis ♦ Retail Market Analysis i
Table of Contents Introduction..................................................................................................1
Section 1: Retail Market Analysis...............................................................3
Section 2: Opinion Research ...................................................................10
Section 3: Competitive Assessment........................................................12
Section 4: Retail Strategy ........................................................................15
Section 5: Business Development Next Steps........................................18
Appendices
A. Target Market Analysis Supporting Charts .......................................21
B. Retail Demand Analysis Supporting Charts .....................................27
C. Shopper Survey Results .......................................................................31
D. Business Owner Survey Results ...........................................................39
E. Retail Market Factsheet ......................................................................49
Acknowledgement The Lake Grove Retail Market Analysis was funded by the Clackamas County Main Street
Program. We wish to acknowledge the organizing and outreach efforts of Main Street
staff: Jamie Johnk, Clackamas County, together with the volunteer help of the Lake
Grove Business Association.
Lake Grove Market Analysis ♦ Retail Market Analysis 1
Introduction
At the heart of Lake Grove’s long-term success is its ability to offer residents, employees and employees a welcoming environment and a positive experience with shopping, dining and doing business. The
purpose of the market analysis is to develop a market-based Business Development Plan that directly addresses Lake Grove’s desire to have a
strong and vital business district. Clackamas County contracted with Marketek, Inc. to prepare this market
analysis in conjunction with the Lake Grove Main Street Program. It focuses on one of the four key elements of the Main Street Program – Economic Restructuring.
Program Approach The Lake Grove Main Street Program is organized according to the Main Street Approach, which focuses on four critical components for creating
success and vitality: Promotion/Identity-Building, Design/ Physical Improvements, Economic Development, and Organization.
1) Promotions/Identity Building: Identify, develop and promote the
image and promise of the business district by marketing its unique
characteristics to shoppers, investors, new businesses, and visitors. Create an effective promotion strategy to forge this positive image.
Create an atmosphere of fun and activity.
2) Design/Physical: Capitalize on and improve Lake Grove’s physical
assets. Create an inviting atmosphere to convey a visual message about the comfort and vibrancy of Lake Grove. Increase the utility
and user-friendly quality of Lake Grove.
3) Economic Development: Support existing and attract new businesses to respond to the current market. Balance business mix and provide amenities for all shoppers. Convert unused space into productive property. Sharpen the competitiveness of existing business.
4) Organization: Establish common goals for Lake Grove’s development,
and build and organize consensus and cooperation among Lake Grove stakeholders.
Lake Grove Market Analysis ♦ Retail Market Analysis 2
Project Purpose The purpose of this analysis is to:
♦ Provide a comprehensive assessment of potential market support for retail uses in the Lake Grove commercial district.
♦ Create an accurate picture of Lake Grove’s retail industry including a characterization of the existing supply of businesses; consumer
preferences, needs and buying patterns; and opportunities and challenges for growth and development in Lake Grove.
♦ Provide a factual basis for developing strategies to strengthen and diversify Lake Grove’s retail base and capture more consumer
spending locally. ♦ Recommend business development and marketing strategies to
strengthen the Lake Grove retail base.
Project Methodology As Lake Grove’s retail expansion efforts will be implemented over time,
the market analysis considers a ten-year time frame from 2009 to 2019, which is a realistic projection period for retail development. Research, both primary and secondary, includes:
♦ Statistical estimates of potential supportable retail space in the Lake
Grove market area ♦ Surveys of Lake Grove business owners ♦ Surveys of resident/employee shopping preferences
♦ Interviews with local businesses/retailers and other community leaders ♦ Seven site visits to Lake Grove
This research was completed in tandem with a retail analysis/strategy for the City of Lake Oswego overall, the Lake Oswego Market Analysis &
Business Development Plan. That effort included an inventory and mapping of ground floor businesses in all of Lake Oswego’s retail centers,
including Lake Grove and information in that document will supplement this effort.
This report is organized into five principal sections: 1) Retail Market Analysis 2) Opinion Research
3) Competitive Assessment 4) Retail Development Strategy
5) Business Development Action Plan
Lake Grove Market Analysis ♦ Retail Market Analysis 3
Retail Market Analysis
This section outlines Lake Grove’s key retail target markets and provides an estimate of existing and future support of retail space in the Lake Grove Market Area.
TARGET MARKET ANALYSIS
The Lake Grove Market Area has the potential to serve and attract sales from local residents, area employees, and visitors. Each customer group is summarized in the following.
Local Resident Market Based upon the patronage of existing businesses, Lake Grove’s location within the region, its competitive assets and the transportation system, the
Lake Grove Market Area is defined as shown on the map below. For comparative purposes, demographic data are also presented for the City of Lake Oswego, the Portland Metropolitan Statistical Area (MSA), and the
State of Oregon (Exhibit 1).
Lake Grove Market Area
♦ 2009 Lake Grove Market Area population was estimated at 72,916
persons and 29,826 households. ♦ Market Area has seen moderate population (0.72%) and household
(0.63%) growth since 2000.
Lake Grove Market Analysis ♦ Retail Market Analysis 4
♦ Market Area growth rates were just below those of the Portland MSA and the State.
♦ The City of Lake Oswego has grown at essentially the same rate, just under 1%, as the Lake Grove Market Area since 2000.
♦ By 2014, the Market Area is expected to reach 75,549 persons and 30,950 households, similar to growth during the 2000-2009 period.
♦ Household size averages 2.4 persons in the City of Lake Oswego and
Lake Grove Market Area, just below that of the Portland MSA (2.6) and the State (2.5).
Demographic City of Lake Grove Portland State of
Indicator Lake Oswego Market Area MSA Oregon
Population
2009 (estimate) 37,792 72,916 2,233,323 3,841,859
2014 (forecast) 38,902 75,549 2,396,625 4,064,906
Avg. Ann. % Change ('00 to '09) 0.79% 0.72% 1.76% 1.37%
Avg. Ann. % Change ('09 to '14) 0.59% 0.72% 1.46% 1.16%
Households
2009 (estimate) 15,589 29,826 857,304 1,495,911
2014 (forecast) 16,083 30,950 919,054 1,584,044
Avg. Ann. % Change ('00 to '09) 0.62% 0.63% 1.67% 1.35%
Avg. Ann. % Change ('09 to '14) 0.63% 0.75% 1.44% 1.18%
Average Household Size 2.41 2.43 2.56 2.51
Median Household Income $84,485 $75,700 $62,166 $53,483
Median Age (Years) 44.0 39.9 36.3 38.0
Race
Percent White Alone 89.6% 86.4% 81.5% 83.7%
Percent Other Race/2+ Races 10.4% 13.6% 18.5% 16.3%
Percent Hispanic 3.5% 8.8% 10.3% 11.2%
Homeownership 69.9% 65.0% 62.7% 64.0%
Educational Attainment
Associate Degree 5.8% 6.3% 8.0% 7.7%
Four Year Degree or More 64.1% 56.6% 31.5% 27.7%
Source: ESRI BIS
DEMOGRAPHIC SNAPSHOT
City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon
2009
Exhibit 1
Lake Grove Market Analysis ♦ Retail Market Analysis 5
♦ Median household income in the Market Area is $75,700, approximately 22% higher than that of the MSA ($62,166).
♦ Median household income in the City of Lake Oswego is $84,485, considerably higher than the Market Area, the MSA, and the State.
♦ Median age in the Market Area (44 years) is on par with that of the State (38 years) but a bit above the MSA (36 years).
♦ The median age in the City of Lake Oswego is 44 years, higher than in
the Market Area, the MSA and the State. ♦ Race in the Market Area and City is less diverse than in the MSA and in
the State. ♦ Eighty-six percent (86%) of Market Area residents are white, 6%
Asians/Pacific Islanders, and 3% of residents are “some other race” or
two or more races. ♦ Nine percent (9%) of Market Area residents and 4% of the City
population are of Hispanic origin, compared to 10% in the MSA and
11% in the State.
Detailed charts characterizing the Market Area population including lifestyle information are provided in Appendix A.
Employee Market ♦ An estimated 2,579 businesses operate within a two-mile radius of
16008 Boones Ferry Road area (Exhibit 2). ♦ Businesses within the two-mile radius employ more than 29,000 persons.
♦ The largest share of employees work in the Services Sector (35%), followed by Retail Trade (19%), and Finance/Insurance/Real Estate
(18%).
Two-Mile Radius of 16008 Boones Ferry Road
Lake Grove Market Analysis ♦ Retail Market Analysis 6
Employees working in and near the Lake Grove Market area are an important captive market for retail, service, and entertainment business.
Research conducted by the Building Owners and Managers Association of America estimates that office workers spend 10% to 15% of their
expendable income in and near their places of work. Top spending categories include restaurants, entertainment, cards and gifts, personal care items, and books and magazines.
V Visitor Market The Clackamas County visitor market – which includes the City of Lake Oswego and the Lake Grove Market Area – has witnessed a strong rise in travel spending over the past 16 years. Lake Grove has the potential to
attract more of the Clackamas County visitor market given that there are several hotels at Kruse Way and I-5 as well as the newly added hotel at
the Bridgeport Shopping Center. ♦ Clackamas County visitor market grew from $177.4 million in 1991 to
$448.5 million in 2007.
Industry # % # %
Agriculture & Mining 42 1.6% 334 1.1%
Construction 175 6.8% 1,670 5.7%
Manufacturing 117 4.5% 2,709 9.2%
Transportation 46 1.8% 507 1.7%
Communication 16 0.6% 185 0.6%
Electric/Gas/Water/Sanitary Services 8 0.3% 130 0.4%
Wholesale Trade 193 7.5% 2,484 8.5%
Retail Trade 400 15.5% 5,606 19.1%
Finance/Insurance/Real Estate 509 19.7% 5,303 18.1%
Services 953 37.0% 10,121 34.5%
Government 13 0.5% 100 0.3%
Other 107 4.1% 152 0.5%
Total Employment 2,579 100.0% 29,301 100.0%
Source: ESRI BIS
Note: Distance is from 16008 Boones Ferry Road.
Businesses Employees
BUSINESSES AND EMPLOYMENT
2-Mile Radius
2009
Exhibit 2
Lake Grove Market Analysis ♦ Retail Market Analysis 7
♦ Top visitor spending categories in Clackamas County include retail sales ($116 million per year or 26%) and restaurants ($104 million per
year or 24%).
Extrapolating the growth rate, Marketek estimates that from 2009 to 2019 visitor spending in the County is expected to increase by $154.8 million to reach $606.1 million.
RETAIL DEMAND POTENTIAL
Marketek estimated potential demand for additional retail, restaurant and entertainment space in the Lake Grove Market Area on resident spending. Spending potential by merchandise type was converted to
square feet of store space based on sales per square foot standards derived from the Urban Land Institute’s Dollars and Cents of Shopping
Centers. For the resident market, demand is
derived from two sources. The first, “existing demand,” is demand for retail goods by current market area
households that is now being met outside the Market Area. Existing
demand is found by comparing the retail supply (i.e., actual retail sales) with retail demand (i.e., the expected amount spent by Market Area residents
based on consumer expenditure patterns). When demand outweighs supply, a leakage occurs, indicating that consumers are spending outside
of the Market Area for some retail goods or services. While consumers will always do a certain amount of shopping away from home, this comparison provides a reasonable indication of the availability of goods
in the local market.
The second source, “future demand,” is demand for retail goods based on spending patterns and projected household growth within the market
area over the next ten years. Although Marketek did not calculate demand from the visitor market, this target group also has the
potential to contribute to retail, restaurant, and service sales in the Lake Grove Market Area.
Visitors will become more significant over time especially if the area actively promotes its dining, retail, and hotel accommodations.
Lake Grove Market Analysis ♦ Retail Market Analysis 8
Potential demand for new retail space is divided among five merchandise categories: shoppers’ goods, restaurants, entertainment, convenience
goods, and personal services. The types of goods and services within these categories are provided in Appendix B.
The results of the demand analysis are depicted in Exhibit 3 below. Detailed analyses for each source of demand are provided in Appendix
B.
♦ Existing resident demand has the potential to support an additional
272,602 square feet of retail space in the Market Area.
♦ Future resident demand between 2009 and 2014 will support an additional 128,596 square feet.
♦ Future demand between 2014 and 2019 will support another 133,442 square feet for a total of 534,641 square feet of potential new retail space in the Market Area through 2019.
Merchandise/ 2009 2009-2014 2014-2019
Service Category Existing Unmet Market Area Market Area
Demand Demand Demand
(SF) (SF) (SF) (SF)
Shoppers Goods
Apparel --- 12,925 13,412 26,338
Home Furnishings --- 13,379 13,884 27,263
Home Improvement 42,041 15,162 15,733 72,936
General/Specialty Retail 162,278 14,653 15,205 192,136
Subtotal 204,320 56,119 58,234 318,673
Convenience Goods
Grocery 68,282 24,495 25,418 118,196
Health/Personal Care --- 4,444 4,611 9,055
Subtotal 68,282 28,939 30,030 127,251
Restaurants --- 22,881 23,743 46,624
Entertainment NA 9,173 9,518 18,691
Personal Services NA 11,484 11,917 23,401
Total 272,602 128,596 133,442 534,641
Source: ESRI; Urban Land Institute; Marketek, Inc.
Total Potential
New Retail
Space
RETAIL EXPENDITURE POTENTIAL
Lake Grove Market Area
2009-2019
Exhibit 3
Lake Grove Market Analysis ♦ Retail Market Analysis 9
The absorption and distribution of retail demand into the marketplace is a highly
dynamic and fluid process, influenced by factors ranging from the timing and
availability of quality space and existing business anchors to district marketing and incentives. All ‘smart’ shopping districts or
centers strive to offer the marketplace a diversity of quality businesses, including specialty goods, which are so
prevalent in today’s consumer market. If the Lake Grove Market Area sought to capture 10% of existing Market
Area demand/leakage and 15% of the future demand potential between 2009 and 2019, it would translate to potential for 66,566 square feet of new retail space over the next ten years.
In an effort to put these demand estimates in context, Appendix B
provides the median sizes of several types of businesses that may be appropriate for Lake Grove.
Success in capitalizing on this commercial opportunity will be highly dependent on a number of factors, including the commitment to quality
physical development, property redevelopment and maintenance, aggressive marketing, and organized management of the commercial corridor.
Lake Grove Market Analysis ♦ Retail Market Analysis 10
Opinion Research
Shopper Survey Highlights ♦ One hundred and thirty-two (132) people participated in the survey.
Complete results are provided in Appendix C.
♦ Most respondents choose to do their non-grocery shopping at Washington Square (53.4%).
♦ Of the 95 respondents, 23 suggest that they would buy books locally if
there were more availability. Clothing is the next most popular choice
of 17 respondents.
♦ Kitchenware and linens are the most commonly requested household goods, requested by 30 and 20 respondents respectively.
♦ Respondents most commonly suggest that Lake Grove does not need any additional convenience merchandise or personal
services. The low response rate of this question compared to other questions
about needed goods and services seems to further the case that many Lake Grove residents are satisfied with the current level of service.
♦ Unlike respondents from other areas, Lake Grove respondents prefer to shop during normal work hours (48.2%).
♦ The majority of respondents cite the convenient location of businesses
as the primary advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to support local businesses (73.0%).
♦ The majority of respondents cite a poor selection of goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of shopping in Lake Grove.
♦ Almost half of respondents are 55 years of age or older (44.1%).
Lake Grove Market Analysis ♦ Retail Market Analysis 11
Business Owner Survey Highlights ♦ The survey generated responses from 33 Lake Grove business owners.
Complete results are provided in Appendix D. ♦ More than any other category, 30.3 percent of respondents reported
that their business provides professional services. Restaurant and financial/insurance/real estate businesses are operated by 18.2
percent of respondents.
♦ Most respondents (68.8%) report operating their business in Lake Grove
for more than ten years.
♦ Most respondents note that their proximity to a variety of freeways is a strength of doing business in Lake Grove. Specific freeways mentioned include Highway 217 and Interstate 5.
♦ Most respondents reported that a lack of
accessibility is a disadvantage to doing
business in Lake Grove. This is demonstrated by a lack of bike lanes, bus
service, and inhospitable pedestrian conditions.
♦ Almost half of respondents report steady activity (43.3%). Thirty percent report moderate growth.
♦ An overwhelming majority of respondents (60.0%) do not plan on
making any changes to their business in the next one to two years.
♦ Most respondents cite public access as the most critical contributing
factor to the success of their business (60.0%).
♦ A strong majority of respondents reported that the current condition of
the economy is the largest obstacle faced today (75.0%). ♦ Most respondents report that marketing/advertising information is
important for their business to remain healthy and competitive (55.6%).
Lake Grove Market Analysis ♦ Retail Market Analysis 12
Competitive Assessment Successful business districts of any size have a healthy business climate
and a pro-active marketing program. Key amenities and characteristics to draw customers and/or business prospects to neighborhood or community shopping centers include those listed below:
Exhibit 4 BUSINESS DISTRICT ATTRACTORS
Access & Linkages • Good visibility
• Walkability-pedestrian friendly
• Transportation/transit access
• Good signage
• Parking availability
Uses & Activities • Overall active use—‘street life’
daytime and evening
• Destination attraction(s) in close
proximity
• Mix of stores/services—active
business clusters
• Frequency of events
• Limited vacancies
• Local entrepreneurship
• Quality goods and services
• Stable/improving real estate values
Factors Affecting Retail Location • Compatible land use patterns
• Property values (realistic)
• Rent levels (realistic)
• Organized promotions
• Good management
• Business compatibility
Image (clean, safe, green, attractive, places to sit, ambiance) • Welcoming physical
appearance—friendly, green,
attractive streetscape
• Safe
• Clean, well maintained
• Benches, garbage cans, bike racks
• Unique atmosphere
• Sense of pride and ownership
Source: Marketek, Inc.
These factors are particularly critical for older commercial districts seeking
to compete for retail dollars being spent with new shopping malls, lifestyle centers and big box-anchored centers. Although many of Lake Grove’s assets and challenges have been identified through other initiatives like
the Village Center Plan, they are listed below to portray a composite picture and to evaluate Lake Grove from two key perspectives:
1) What customers want from a shopping experience; and 2) Business climate and marketing factors that affect business decision-
makers seeking a profitable location.
Lake Grove Market Analysis ♦ Retail Market Analysis 13
Exhibit 5 LAKE GROVE COMPETITIVE ASSESSMENT
Geography/Description
The Lake Grove shopping and business district is nearly one mile in length with Boones
Ferry Road as the spine. This four-lane vehicle-oriented commercial corridor stretches
from Madrona Street on the southern end to Kruse Way to the north. Estimated
ground floor built space totals over 780,000 square feet with an 8% vacancy rate. The
business inventory revealed: 22 retailers, 28 dining/food-related businesses and 56
personal/professional/other service businesses.
Strengths/Assets
♦ Grocery and convenience goods/services from numerous banks to professional
offices are day-to-day anchors attracting neighborhood traffic
♦ Local marketplace is family-oriented with above average incomes but a low to
moderate rate of growth
♦ Post office and elementary school are strong civic anchors also bringing
consumers to the district
♦ Large concentration of restaurants offering a very wide range of cuisines and
prices
♦ New infill development/redevelopment is occurring particularly on the southern
end of the Boones Ferry corridor
♦ Within a 2-mile radius are over 2,500 businesses employing an estimated 29,000
persons offering a large built-in market 52 weeks a year. Kruse Way has nearly
900,000 square feet of office space, the largest concentration in Clackamas
County.
♦ Close proximity to several hundred hotel rooms at Kruse Way and I-5, offering a
year-round visitor market.
♦ Lake Grove has very good highway access with Boones Ferry serving as a
commuter route
♦ Active engaged business community organized through the Lake Grove Business
Association
♦ Lake Grove Village Center Plan provides a vision and guiding principles for the
commercial corridor’s long term development
♦ Attractive streetscape improvements throughout the district
Challenges
♦ Significant retail competition including Bridgeport, Costco and Washington
Square
♦ Highly auto-oriented suburban style development with street fronting parking lots,
dozens of driveways and freestanding commercial structures dominating the
corridor
♦ Limited directional signage and gateway and other urban design features make
it harder for shoppers to identify the Lake Grove shopping district
Lake Grove Market Analysis ♦ Retail Market Analysis 14
Strengths
Challenges
Opportunities
Lake Grove Market Analysis ♦ Retail Market Analysis 15
Retail Strategy
General retail strategies are provided for Lake Grove related to Market Position, Business Mix and Targets and Property Development.
Market Position Lake Grove must view itself as a ‘product’ and market itself to compete with other nearby shopping centers and business districts. It is beyond the scope of this project to suggest a brand identity, though marketing
themes and taglines suggested in the community input are highly valuable. Developing a common message and identity will provide
guidance for Lake Grove’s marketing, urban design elements, signage, advertising, marketing collateral, website, etc. In general, Lake Grove should promote itself as the true heart of the community—a unique and
special destination for residents, visitors and businesses. A sample market position statement and key marketing themes are summarized in Exhibit 6.
Exhibit 6 LAKE GROVE MARKET POSITION
Target Markets Primary: Lake Oswego residents and Kruse Way businesses/employees
Secondary: Pass through travelers using Boones Ferry/Kruse Way corridors and
overnight visitors on I-5.
Key demographics: middle-to-upper income women and families
Market Position Statement Lake Grove is a small town shopping district serving a significant daytime
marketplace with a wide range of convenience shopping choices and
commercial services.
Marketing Messages • Locally owned and operated businesses emphasizing excellent customer
service
• Catering to a variety of income levels
• Independent businesses with hometown hospitality
• Businesses supporting businesses to grow the local economy
Storyline Lake Grove is a dual-purpose shopping district. It is both a neighborhood shopping district offering day-to-day retail and service needs and the Kruse Way
community’s dining and business service center.
Lake Grove Market Analysis ♦ Retail Market Analysis 16
Business Mix and Targets A successful business district in virtually any size community will have a balance and mix of uses that includes retail shopping, professional,
cultural, financial and government services, entertainment, housing, and personal services. Lake Grove already exists as a mixed-use shopping center bringing residents, businesses and employees together for many
purposes. Much of the Lake Grove market area fills its daily shopping needs in the Lake Grove district. An important goal over the next five
years and longer will be to increase the number of retail businesses in the core area and maintain ground floor space in the contiguous commercial spaces for retail businesses, such as the Wizer’s Shopping Center.
The results of the statistical market analysis as well as the opinion research
indicate that Lake Grove has the opportunity to grow its retail base and fill niches and voids in the local marketplace. Identifying the most appropriate business mix for Lake Grove, as earlier noted, is a function of
demographics and lifestyle characteristics, spending potential, survey research, the existing business base, and retail trends.
Success will be achieved in Lake Grove with business owners dedicated to:
♦ Providing a good quality product at a fair price ♦ Providing exceptional customer service
♦ Responding to the changing needs of both trade area customers and visitors
♦ Aggressively marketing to these target customer groups ♦ Offering multiple, complementary product lines ♦ Filling specific, unique niches
♦ Having focus, imagination and a deep desire to meet the needs of the customer
The following list of business and merchandise opportunities (Exhibit 7) potentially can be supported based upon the market analysis. They
support the goal of concentrating on specialty goods and were identified as priorities by shoppers and business owners. Combinations of the goods and services as well as many others that have unique appeal to area
markets should be considered for business development efforts. Through the survey research, local residents and employees expressed interest in
both locally owned and select chain businesses.
Lake Grove Market Analysis ♦ Retail Market Analysis 17
Exhibit 7 TARGET LAKE GROVE BUSINESS OPPORTUNITIES
Merchandise
Bookstore
Gifts/cards
Bed & bath linens/
accessories
Kitchen accessories shop
Quality consignment –ladies
Children’s clothing
(moderately priced)
Home accessories
Women’s casual apparel
Restaurants/Food
Ethnic
Brewpub
Family dining-50s
Deli
Healthy foods
Entertainment
Community art/performance center
Personal Care/
Service
Gym
Computer repair/service
Appliance repair
Homeopathic/naturopathic care
Property Development An important step for recruiting business prospects and developers is to
provide an inventory of available real estate (properties and lots) and, better yet, to be in the position to bring key properties to the table. The
goal of Property Development strategies is twofold--to create awareness of available properties and to stimulate interest and action toward property improvements in Lake Grove to better attract quality tenants.
Lake Grove also has a number of catalytic infill sites that are prime redevelopment opportunities. Next steps will be delineated in the action
plan section to follow.
Lake Grove Market Analysis ♦ Retail Market Analysis 18
Business Development Next Steps
The Lake Grove business district will benefit from the City’s commitment to economic development and vitality for the community overall. The just completed Lake Oswego Market Analysis/Business Development Plan will
guide overall retail business retention, enhancement and attraction strategies for Lake Grove as will the new Lake Oswego Economic
Development Manager who works community-wide. However, selected “next steps” for promoting and capitalizing on market
opportunities are customized for Lake Grove in the chart that follows. As it relates to the Lake Grove Main Street Program, these steps provide guidance for the Economic Restructuring and Promotion components.
Exhibit 8 NEXT STEPS
Business Retention and Expansion
1. Promote the findings of Lake Grove’s Retail Market Analysis to existing
businesses through business networking meetings. Encourage existing
businesses to expand and diversify their merchandise mix based upon the
opportunities identified.
2. Through a committee of LGBA, institute a quarterly Business Recognition or
Kudos Program to celebrate Lake Grove businesses for their exceptional
service, business improvements, community service, new initiatives and other
positive endeavors. This PR tactic will reinforce Lake Grove’s identity as a
distinct business district.
3. Respond to the top needs identified by businesses in the business owner
survey—marketing—with an ongoing series of workshops and one-on-one
technical assistance visits ranging from retail promotions and target marketing
to merchandising and window displays.
4. Organize an inventory and evaluate all available vacant buildings and infill
properties to identify those that are ‘most ready’ for retail/service tenants and
most developable in the next five years. Work to match business opportunities
to specific properties to cluster retail businesses.
5. Organize/work with Economic Development Manager on a business outreach
program to be in regular contact with Lake Grove businesses to identify and
respond to critical issues and opportunities in a timely manner. Tap the business
development services of the Clackamas Community College (CCC) Small
Business Development Center.
Lake Grove Market Analysis ♦ Retail Market Analysis 19
Exhibit 8 (continued) NEXT STEPS
Customer Attraction & Expansion (Promotion)
1. Create a one-page promotion calendar that includes community events
(such as Lake Grove’s Got Talent), business promotions (such as the Dine
Around Lake Grove event), targeted campaigns to Kruse Way businesses and
Lake Grove neighbors and related activities. Add one or two activities/events
in the year ahead. Determine who will lead and resources needed.
2. Prepare a rack card of Lake Grove restaurants/dining establishments that can
be shared with Kruse Way office tenants, placed in hotel rooms and other
appropriate locations. Be sure to include a simple map of where Lake Grove
is.
3. Ensure that the LGBA website can be easily located and that a Lake Grove
business listing is readily displayed. The website also provides the opportunity
for Lake Grove to communicate its identity and offerings to existing and
prospective businesses, as well as residents and visitors.
4. Develop a rack card of Lake Grove Business Services and Professionals and
distribute to all businesses in a two-mile radius.
5. Advertise and feature Lake Grove businesses in the LO Review on a regular
basis. A one-page ad encouraging the neighborhood to Shop Local
particularly during the holiday season would be a sound investment.
6. Identify ways to partner with the Lake Grove Elementary School on key
events/activities to gain Lake Grove businesses positive PR and more traffic.
Ads, coupon books, sponsorships can all be creatively employed.
Business Attraction
1. Share the Retail Marketplace factsheet (Appendix E) with brokers, local
developers, the Chamber, CCC Small Business Development Center and Lake
Grove business leaders to demonstrate the retail opportunity and vision for
bringing more retailers to Lake Grove.
2. Develop target recruitment campaigns for two key business opportunities, to
include business and local networking, mailings, one-on-one contact, third-
party outreach, targeted collateral material and related activities.
3. Create a list of and maintain referral networks with leading realtors/brokers,
developers and business leaders and educate them regarding the types of
businesses most appropriate for Lake Grove. Develop a schedule of
communications the group informed about Lake Grove initiatives and
opportunities. This is truly important to reinforcing Lake Grove’s unique identity
and offerings.
Lake Grove Market Analysis ♦ Retail Market Analysis 20
Exhibit 8 (continued) NEXT STEPS
Business Attraction (continued)
4. Create a list of and maintain referral networks with leading realtors/brokers,
developers and business leaders and educate them regarding the types of
businesses most appropriate for Lake Grove. Develop a schedule of
communications the group informed about Lake Grove initiatives and
opportunities. This is truly important to reinforcing Lake Grove’s unique identity
and offerings.
5. Enable developers and prospective businesses to access downloadable
marketplace data, an overview of the Lake Grove Village Plan, current and
future planning projects and other pertinent recruitment material online.
NOTE: Determine with the City of Lake Oswego Economic Development
Manager what information will be on the City’s website, on LGBA’s website
and/or in both places.
6. Create a simple database of key economic indicators to track and promote
Lake Grove’s vitality and overall progress. Data should include: vacancy rate,
jobs gained, private/public investment, businesses recruited/retained, special
event/promotion traffic counts and overall retail sales trends. This information
can be gathered with the guidance of the Economic Development Manager
and used as part of an annual economic ‘report card’ of conditions.
Successful implementation of Lake Grove’s business development program requires strong coordination, consistent communication and commitment to a vision for a more cohesive business district. The steps
outlined above assume that a collaborative team will work together on the commercial base, including the Lake Grove Main Street Program,
LGBA, the City of Lake Oswego, the Lake Oswego Chamber of Commerce, local neighborhood associations and other organizational leaders. To ensure forward movement and progress toward the overall
goal of a healthy business district, begin with three-to-five new initiatives from the list and develop 30-60-90 project work plans. These work plans
will be important for engaging new volunteers and community leaders and for measuring outcomes over time.
Lake Grove Market Analysis ♦ Retail Market Analysis 21
Appendix A. Demographic Profile
2000 2009 Number Percent 2014 Number Percent
(Estimate) (Forecast)
City of Lake Oswego
Population 35,278 37,792 279 0.79% 38,902 222 0.59%
Households 14,769 15,589 91 0.62% 16,083 99 0.63%
Avg. Household Size 2.38 2.41 0.003 2.41 0.000
Lake Grove Market Area
Population 68,475 72,916 493 0.72% 75,549 527 0.72%
Households 28,225 29,826 178 0.63% 30,950 225 0.75%
Avg. Household Size 2.42 2.43 0.001 2.43 0.000
Portland MSA
Population 1,927,881 2,233,323 33,938 1.76% 2,396,625 32,660 1.46%
Households 745,531 857,304 12,419 1.67% 919,054 12,350 1.44%
Avg. Household Size 2.54 2.56 0.002 2.57 0.002
State of Oregon
Population 3,421,399 3,841,859 46,718 1.37% 4,064,906 44,609 1.16%
Households 1,333,723 1,495,911 18,021 1.35% 1,584,044 17,627 1.18%
Avg. Household Size 2.51 2.51 0.000 2.51 0.000
Source: ESRI BIS
City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon
2000-2014
POPULATION & HOUSEHOLD GROWTH
Geographic Area
Avg. Ann. Change Avg. Ann. Change
2000-2009 2009-2014
Average Annual Population Growth Rates, 2000-2014
0.0%
0.5%
1.0%
1.5%
2.0%
City of Lake Oswego Lake Grove Market
Area
Portland MSA State of Oregon
2000-2009 Avg. Ann. Change 2009-2014 Avg. Ann. Change
Lake Grove Market Analysis ♦ Retail Market Analysis 22
Income City of Lake Grove Portland State of
Lake Oswego Market Area MSA Oregon
Less than $15,000 4.4% 4.8% 8.0% 10.6%
$15,000 - $24,999 4.2% 5.0% 7.4% 9.7%
$25,000 - $34,999 5.5% 6.0% 8.5% 10.3%
$35,000 - $49,999 11.6% 12.6% 14.5% 15.6%
$50,000 - $74,999 19.4% 21.1% 23.6% 22.7%
$75,000 - $99,999 11.2% 12.9% 15.5% 15.0%
$100,000 - $149,999 20.9% 18.9% 14.7% 10.2%
$150,000 - $199,999 8.9% 8.1% 4.1% 3.1%
$200,000 or More 13.9% 10.6% 3.7% 2.8%
Total 15,589 29,826 857,304 1,495,911
Median Household Income $84,485 $75,700 $62,166 $53,483
Source: ESRI BIS
HOUSEHOLD INCOME
City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon
2009
0%
5%
10%
15%
20%
25%
Less than
$15,000
$15,000 -
$24,999
$25,000 -
$34,999
$35,000 -
$49,999
$50,000 -
$74,999
$75,000 -
$99,999
$100,000 -
$149,999
$150,000 -
$199,999
$200,000 or
More
City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon
Household Income Distribution, 2009
Lake Grove Market Analysis ♦ Retail Market Analysis 23
Age Category City of Lake Grove Portland State of
Lake Oswego Market Area MSA Oregon
Under 5 4.7% 5.6% 7.0% 6.5%
5-14 11.9% 12.1% 13.2% 12.5%
15-19 6.6% 6.5% 6.7% 6.8%
20-24 5.4% 6.3% 6.7% 6.8%
25-34 10.2% 13.1% 14.6% 13.5%
35-44 12.6% 13.5% 14.3% 13.2%
45-54 18.8% 17.5% 14.9% 14.8%
55-64 16.5% 14.5% 11.7% 12.7%
65-74 7.3% 6.1% 5.7% 6.8%
75-84 4.1% 3.3% 3.5% 4.3%
85+ 1.9% 1.5% 1.7% 2.1%
Total 37,792 72,916 2,233,323 3,841,859
Median Age 44.0 39.9 36.3 38.0
Source: ESRI BIS
City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon
2009
POPULATION BY AGE
Age Distribution of the Population, 2009
0%
5%
10%
15%
20%
Under 5 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon
Lake Grove Market Analysis ♦ Retail Market Analysis 24
Race/Ethnicity City of Lake Grove Portland State of
Lake Oswego Market Area MSA Oregon
White Alone 89.6% 86.4% 81.5% 83.7%
Black Alone 0.7% 1.0% 2.8% 1.7%
American Indian Alone 0.3% 0.5% 0.9% 1.3%
Asian/Pacific Islander 5.7% 5.6% 6.0% 4.1%
Some Other Race Alone 1.0% 3.4% 5.1% 5.8%
Two or More Races 2.7% 3.1% 3.7% 3.4%
Hispanic Origin (any race) 3.5% 8.8% 10.3% 11.2%
Total 37,792 72,916 2,233,323 3,841,859
Source: ESRI BIS
City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon
2009
RACIAL & ETHNIC COMPOSITION
0%
20%
40%
60%
80%
100%
White Alone Black Alone American Indian
Alone
Asian/Pacific
Islander
Some Other
Race Alone
Two or More
Races
Hispanic Origin
(any race)
City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon
Racial & Ethnic Composition, 2009
Lake Grove Market Analysis ♦ Retail Market Analysis 25
Community Tapestry Segments Recognizing that people who share the same demographic characteristics may have widely divergent interests and shopping preferences, Community Tapestry
data (developed by ESRI Business Information Solutions) categorizes neighborhoods throughout the nation into 65 consumer groups or market segments. Neighborhoods are geographically defined by census blocks, which
are analyzed and sorted by a variety of demographic and socioeconomic characteristics as well as other determinants of consumer behavior. Market area
households have been grouped into Tapestry market segments. The market segments within the Lake Grove Market Area are identified and summarized in the chart on the following page.
Lake Grove Market Analysis ♦ Retail Market Analysis 26
% of Hhold Median Median Consumer Preferences &
Hholds Type Age Income Purchases
1 In Style 20.8%
Married
couples
without
children
40 $72,112
Well-educated professional couples who may live in the suburbs
but enjoy the amenities of the city. They travel frequently for
business and pleasure, own mutual funds and contribute to 401-K
accounts. Enjoy dining out and shopping at stores such as Anne
Taylor and Nordstrom.
2Enterprising
Professionals15.1%
Single
persons
or
married
couples
34 $69,960
These young, educated, working professionals change cities
frequently, moving where jobs are located. They prefer to rent,
rely on cell phones, PCs and the Internet and love to travel.
3Suburban
Splendor11.0%
Married
couples41 $129,931
Families in growing neighborhoods who own large, luxurious
homes and hire contractors and maintenance workers. They
devote free time to travel, fitness and trips to museums or the
theater.
4 Exurbanites 9.7%Married
couples45 $88,195
Empty nester couples who spend time working in their garden or
decorating their homes. Enjoy domestic wine, attending the
theater and outdoor activities such as boating and hiking.
5 Urban Chic 8.7%Married
couples41 $89,521
Professionals with exclusive, sohpisticated lifestlyes, members of
these households travel extensively and attend museums, dance
performances and concerts. They use the Internet to arrange
travel, follow investments and make purchases.
6 Connoisseurs 6.8%Married
couples47 $123,255
Affluent, older couples approaching retirement. They live in older,
affluent neighborhoods and spend heavily on travel and
vacations.
7Young and
Restless6.0%
Singles/
Shared
hholds
29 $43,645
These households are young and on the go. Their purchases
center on themselves and include sports gear, designer clothing
and computers and software. Favorite stores include Banana
Republic and Express.
8Aspiring Young
Families5.5%
Family
Mix31 $50,392
Live in start up homes or town homes, nearly half are renters, spend
their discretionary income on their children and homes. Enjoy
eating out, movies, and playing sports.
9 Metropolitans 5.0%
Married
couples/
Singles
38 $61,973
Singles and childless couples with a busy, urban lifestyle. Do yoga,
listen to jazz and visit museums. Travel frequently for business and
pleasure.
10 Top Rung 4.3%Married
couples42 $185,415
Mature, highly-educated, wealthy families. They indulge
themselves with frequent travel and shop at stores such as
Nordstrom, Lord & Taylor and Banana Republic. Laptops and cell
phones are necessities.
Source: ESRI BIS
Total Households 92.9%
TOP TEN TAPESTRY MARKET SEGMENTS
Lake Grove Market Area
Market Segment
2009
Lake Grove Market Analysis ♦ Retail Market Analysis 27
Appendix B. Retail Demands
Merchandise/Service Types of Goods/Services
Category
Apparel Women's Apparel, Men's Apparel, Children's, Footwear,
Watches & Jewelry
Home Furnishings Furniture, Floor Coverings, Major and Small Appliances,
Household Textiles, Floor Coverings, PC Software and
Hardware, Housewares, Dinnerware, Telephones
Home Improvement Maintenance and Remodeling Materials, Lawn & Garden
Misc. Specialty Retail Pet Care, Books & Periodicals, Sporting Equipment, Toys &
Hobbies, Video Cassettes & Games, TV/VCR/Cameras,
Audio Equipment, Luggage, Eyeglasses
Groceries Food at Home, Nonalcoholic Beverages at Home,
Alcoholic Beverages, Smoking Products
Restaurants Food Away From Home, Alcoholic Beverages
Entertainment Admission to Movie/Theater/Opera/Ballet, Recreational
Lessons, Participation in Clubs
Personal Services Shoe Repair, Video Rental, Laundry & Dry Cleaning,
Alterations, Clothing Rental & Storage, Watch & Jewelry
Repair, Photo Processing & Supplies, Child Care
Source: ESRI BIS
SUMMARY OF MERCHANDISE AND SERVICE CATEGORIES
Lake Grove Market Analysis ♦ Retail Market Analysis 28
Demand/ Target
Spending Supply/ Leakage Sales Potential
Potential Retail Sales (or Surplus) ($/SF)* Space
Shoppers Goods
Apparel $34,849,896 $51,560,357 ($16,710,461) --- ---
Home Furnishings $33,916,452 $67,148,952 ($33,232,500) --- ---
Electronics & Appliances $32,891,267 $124,616,635 ($91,725,368) --- ---
Home Improvement & Gardening $44,627,006 $38,741,211 $5,885,795 $140 42,041
Sporting Goods, Hobbies, Books & Music $14,383,476 $31,456,859 ($17,073,383) --- ---
General Merchandise $193,301,880 $158,249,738 $35,052,142 $216 162,278
Miscellaneous Specialty Retail
(florist, office supplies, gift stores, etc.)
Convenience Goods
Grocery $186,721,693 $160,091,594 $26,630,099 $390 68,282
Health & Personal Care $27,462,945 $70,588,330 ($43,125,385) --- ---
Restaurants $166,991,096 $167,456,775 ($465,679) --- ---
Total Leakage
Estimated Supportable Square Footage 272,602
* Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers."
Source: ESRI BIS; Marketek, Inc.
--- ---
EXISTING RETAIL BALANCE
Lake Grove Market Area
$67,568,036
2009
Merchandise Category
$17,614,506 $26,745,427 ($9,130,921)
Lake Grove Market Analysis ♦ Retail Market Analysis 29
Per Target
Merchandise or Household Sales Sales Space Sales Space Sales Space
Service Category Expenditure ($/SF)* (in mil $) (SF) (in mil $) (SF) (in mil $) (SF)
Apparel $2,403 $209 $71.7 342,980 $74.4 355,906 $77.2 369,318
Home Furnishings $2,369 $199 $70.7 355,031 $73.3 368,411 $76.1 382,294
Home Improvement $1,888 $140 $56.3 402,323 $58.4 417,485 $60.7 433,218
Misc. Specialty Retail $2,816 $216 $84.0 388,817 $87.1 403,470 $90.4 418,675
Shoppers Goods $282.6 1,489,152 $293.3 1,545,271 $304.3 1,603,505
Grocery $8,499 $390 $253.5 649,999 $263.1 674,495 $273.0 699,913
Health/Personal Care $1,443 $365 $43.0 117,921 $44.7 122,365 $46.3 126,977
Convenience Goods $296.5 767,921 $307.7 796,860 $319.3 826,890
Restaurants $5,354 $263 $159.7 607,162 $165.7 630,043 $171.9 653,786
Entertainment $734 $90 $21.9 243,400 $22.7 252,573 $23.6 262,091
Personal Services $1,543 $151 $46.0 304,742 $47.8 316,226 $49.5 328,143
Total $806.8 3,412,377 $837.2 3,540,973 $868.7 3,674,416
Five Year Net Gain $30.4 128,596 $31.5 133,442
* Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers."
Sources: ESRI BIS; Urban Land Institute; Marketek, Inc.
RETAIL EXPENDITURE POTENTIAL
2009-2019
Lake Grove Market Area
2019
Retail Potential Retail Potential
2009 2014
Retail Potential
Lake Grove Market Analysis ♦ Retail Market Analysis 30
Merchandise or Service Category/Business Median National Local Chain Independent
Specialty Retail
Appliances 5,956 6,292 5,911 ~
Art Gallery 1,802 ~ 1,802 1,907
Beauty Supplies 1,807 1,634 2,450 1,829
Bike Shop 3,440 ~ ~ 2,596
Bookstore 10,093 23,000 9,990 2,740
Cameras 2,000 2,000 ~ ~
Children's Wear 3,913 4,879 3,054 2,105
Family Shoe Store 4,000 4,113 5,100 2,460
Family Wear 8,000 8,500 3,474 5,132
Gift/Cards 4,200 4,900 3,780 1,653
Hardware 13,200 13,900 ~ ~
Home Accessories 7,595 10,215 5,365 2,462
Jewelry 1,500 1,610 1,968 1,200
Luggage 2,500 2,499 ~ ~
Men's Clothing Store 3,500 4,319 3,065 2,750
Pet Supplies 7,995 17,600 3,201 3,200
Record/Tapes 4,464 6,178 ~ 2,017
Sporting Goods 8,465 22,000 4,980 2,995
Toys 7,855 12,000 ~ 3,344
Women's Ready to Wear 4,400 4,503 3,960 2,145
Convenience
Drugstore/Pharmacy 10,920 10,860 16,668 4,977
Supermarket 50,420 49,071 51,495 23,300
Bakery 1,990 4,000 ~ 1,700
Gourmet Grocery 18,000 ~ ~ ~
Wine/Liquor 3,440 ~ 6,237 2,920
Personal Services
Day Spa 2,875 ~ 2,563 3,060
Women's Hair Salon 1,400 1,450 1,250 1,361
Nail Salon 1,200 ~ 1,200 1,200
Health Club 10,249 9,548 5,508 10,249
Mail/Packaging/Photocopying 1,278 1,240 ~ 1,236
Tailor/Alteration 950 ~ 900 1,035
Video Rental 6,000 6,333 4,240 4,733
Drycleaners 1,800 ~ 1,800 1,649
Day Care 4,000 ~ ~ 3,901
Laundry 2,114 ~ 2,150 1,955
Restaurants
Restaurant with Liquor 5,204 6,669 5,600 3,362
Restaurant without Liquor 3,581 6,500 3,025 2,625
Bar/Cocktail Lounge 3,821 ~ ~ 3,821
Ice Cream Parlor 1,137 1,144 1,137 1,116
Coffee/Tea 1,578 1,650 1,624 1,400
Entertainment - Cinema 35,022 37,161 35,022 21,250
Source: Urban Land Institute, "Dollars and Cents of Shopping Centers"
TYPICAL SIZE OF SELECTED BUSINESSES
Lake Grove Market Analysis ♦ Retail Market Analysis 31
Appendix C. Shopper Survey Results
Section 1: Shopping & Services in Lake Grove
1. Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? (131 respondents)
� Most respondents choose to do their non-grocery shopping at Washington Square
(53.4%).
� Bridgeport Village is the next most popular shopping destination (29.8%).
� Of the 33 respondents who chose ‘other,’ popular answers include Tigard, Tualatin
and Clackamas Town Center.
Lake Grove Market Analysis ♦ Retail Market Analysis 32
2. What types of merchandise are you currently buying on the Internet that you would purchase locally if it were available? (95 respondents)
� Of the 95 respondents, 23 suggest that they would buy books locally if there were
more availability. Clothing is the next most popular choice of 17 respondents.
� Nineteen of the 95 respondents state that they do not shop on the internet.
3. What kinds of HOUSEHOLD GOODS do you think we are missing or need more of in the
Lake Grove Shopping District, if any? (ex: Furniture, appliances, linens, kitchenware, garden supplies, etc.) (93 respondents)
� Kitchenware and linens are the most commonly requested household goods,
requested by 30 and 20 respondents respectively.
� Hardware is also commonly requested among 17 respondents. Thirteen respondents
suggest that Lake Grove could use more gardening supplies.
4. What kinds of APPAREL do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: women's men's casual, business, children's teens, etc.) (95 respondents)
� Thirty-three respondents believe that Lake Grove could use additional women’s
clothing stores. Twenty-one respondents also suggest more men’s clothing stores are
necessary.
� Of the 95 respondents, 23 specifically mention casual style clothes specifically.
5. What types of SPECIALTY MERCHANDISE do you think we are missing or need more of in the Lake Grove Shopping District? (ex: sporting goods, music, camera, electronics, books, etc.) (99 respondents)
� Reflecting the same answers as in question two, 44 respondents suggest that Lake
Grove could benefit from additional book stores.
� Twenty-two respondents request a sporting goods store. Three respondents mention
that the previous sporting goods store in Lake Grove (Joe’s) recently closed.
6. What kinds of CONVENIENCE MERCHANDISE and PERSONAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: grocery, dry cleaning, DVD rental, hair salons, etc.) (69 respondents)
� Respondents most commonly suggest that Lake Grove does not need any additional
convenience merchandise or personal services. The low response rate of this
question compared to other questions about needed goods and services seems to
further the case that many Lake Grove residents are satisfied with the current level of
service.
Lake Grove Market Analysis ♦ Retail Market Analysis 33
7. What kinds of GENERAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: computer repair, day care, copy center, bank, legal, medical, appliance repair, etc.) (64 respondents)
� Like the previous question, many respondents suggest that they are happy with the
current level of general service.
� Those who did make additional suggestions indicated that computer and appliance
repair, as well as a copy center would be welcome in Lake Grove.
8. What HEALTH SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: dental, chiropractic, naturopathic, vision care, pediatric care, general health care, etc.) (66 respondents)
� Thirty-four respondents state that the current selection of health services in Lake
Grove is adequate.
� Eight respondents suggest that Lake Grove could use additional general health care
facilities and six suggest new urgent care centers.
9. In your opinion, what types of RESTAURANTS AND CUISINES do you think we are
missing or need more of in the Lake Grove Shopping District, if any? (ex: bakery, family, coffee, ethnic, brewpub, etc.) (98 respondents)
� Respondents suggested a variety of different restaurant types, the most common of
which was a brewpub (32 respondents).
� Nineteen respondents suggested both ethnic and/or traditional bakeries.
� Twelve respondents specifically mentioned Indian food as a desired ethnic
restaurant, more than any other specific style.
10. What kinds of LEISURE/ENTERTAINMENT activities do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: gym, art galleries, music events, recreation, etc.) (79 responses)
� More than any other leisure activity, twenty respondents desire music venues in Lake
Grove.
� Thirteen respondents believe that a gym would be welcome in Lake Grove. Fifteen
respondents suggest additional art galleries are necessary.
11. Some of the above merchandise and services may be available locally. Please explain why you may not be buying these products or services in the Lake Grove Shopping District if you are aware of them. (78 respondents)
� “In several cases, it's all about driving and parking. If the area was more pedestrian
and bike friendly, it would help. We do grocery shopping occasionally, my barber is
there, and we frequent a few restaurants from time to time.”
Lake Grove Market Analysis ♦ Retail Market Analysis 34
� “I eat at many places and do my grocery shopping in Lake Grove. Camera,
Gardening supplies, Furniture, and Gyms are too expensive.”
� “I like to shop local but sometimes it's more expensive. Things like furniture and
clothing are not reasonably priced. In this economy we need stores that are offering
competitive prices.”
� “Pricing. We patron local business when possible, and this area is specifically a
destination-bound stop. I wouldn't consider getting out of my car and walking
around.”
� “Cost could keep us driving further afield, but buying local is important. Better ads for
LG shopping needed.”
� “There are a lot of services already offered in Lake Grove but the quality is all over
the map. Not enough clustering of businesses so if you prefer to walk and not drive,
you can only get to maybe one or two places you need to go. This area is NOT
particularly pedestrian friendly. Without a "center" opportunities for music events etc.
are limited. If we're keeping the WEB, let's use it better. That's a huge lawn that could
be used for outdoor gatherings.”
Section 2: Shopping & Business Preferences
12. What are the best times for you to shop? (Please pick the top 3) (112 respondents)
� Unlike respondents from other areas, Lake Grove respondents prefer to shop during
normal work hours (48.2%).
� Next to weekdays between 8:30 AM and 5:00 PM, respondents prefer to shop on
Saturdays.
� Respondents least prefer shopping on Sunday mornings.
Lake Grove Market Analysis ♦ Retail Market Analysis 35
13. Currently, what are the major ADVANTAGES of shopping or doing personal errands in the Lake Grove Shopping District? (Please check the top 3) (111 respondents)
� The majority of respondents cite the convenient location of businesses as the primary
advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to
support local businesses (73.0%).
� Proximity to public transportation (0.9%), selection (4.5%), and prices (10.8%) are the
least cited advantages of shopping in Lake Grove.
14. Currently, what are the major DISADVANTAGES of shopping or doing personal errands
in the Lake Grove Shopping District? (Please check the top 3) (106 respondents) � Mirroring the previous question, the majority of respondents cite a poor selection of
goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of
shopping in Lake Grove.
15. What can Lake Gr
Lake Grove Market Analysis ♦ Retail Market Analysis 36
ove Shopping District merchants do to improve their stores? (Please check the top 3.) (105 respondents)
� More than half of respondents suggest that Lake Grove merchants can improve their
stores by first improving their selection of goods and services (52.8%).
� An equal amount of respondents also believe that Lake Grove stores can be
improved through lowering prices and improving appearance (43.4%).
16. What identity or image would you like to see Lake Grove create for itself as a unique
business and shopping district? (77 respondents)
� “More pedestrian friendly, where one could park and walk around.”
� “A local "main street" shopping experience. Make the area more pedestrian friendly.
Limit left turns onto Boones Ferry.”
� “There is nothing keeping me chained to Lake Grove. I have stayed here for 30 years
because I love it. My single greatest concern is that your organization will do
something to transform it into a cookie-cutter place that looks like everywhere else.
Why do we need all those goods and services in Lake Grove? Why don't we just mow
down a big section of the village and build a Target there? This survey, like so many
others put out by the City of L.O., presupposes that everybody wants to make a big
change, and it is an incorrect supposition. I wish you people would stop pandering to
developers and to business owners like Mike Buck and Vic the auto guy who are just
looking for their big chance to cash in.”
� “Not another Bridgeport Village! Foster local business! Identify with customer base -
neighbors and other local merchants - and create community. People shop where
they feel most comfortable. Work to make the shopping district feel like home.”
Lake Grove Market Analysis ♦ Retail Market Analysis 37
Section 3: General Information
17. Please check your age. (111 respondents) � Almost half of respondents
are 55 years of age or older
(44.1%).
� Respondents under the
age of 24 make up only 1.8
percent of the total.
18. Please tell us your home zip code. (110 respondents)
� Of the 110 respondents, 71 live in the 97035 ZIP code. Thirty-two respondents live in
the 97034 ZIP code.
19. If you work outside the home, please tell us the ZIP code of your work address. (62 respondents)
� Of the 62 respondents, 28 work in the 97035 ZIP code.
� Eight respondents work in the 97221, 97222, 97223, and 97224 ZIP code.
20. Please share any other comments below. (70 respondents)
� “Make Boones Ferry like NW 23rd. Cool shops and eateries. Lots of foot traffic. Hip,
happening place people would actually want to go.”
� “Wizer's Groceries is the epitome of overall service, quality and customer friendliness.
Their sales offset higher prices at other stores. If you use their sales you will balance
shopping prices at the big box grocery stores. Wizers should be a key cornerstone of
Lake Grove.”
� “I think we have the things needed most in convenient locations like; Grocery Stores,
Restaurants, Post Office, DMV, AAA, Dentists, Chiropractors. It's only the extras that
aren't bought on a regular basis like; Camping gear, Craft supplies, Furniture,
Electronics.”
Lake Grove Market Analysis ♦ Retail Market Analysis 38
� “Very concerned about the traffic & parking impacts on the transitional streets
leading to the adjacent neighborhood associations. Understand that the Village
Center Plan recommendations and code amendment overlays do not ‘trump’ the
local neighborhood association plans. Recognize that the adjacent neighborhood
associations are part of the primary stakeholders as the LGVC Plan begins to unfold
and that the NA's need to be kept informed and involved all during this period.”
� “Boones Ferry is an unappealing, very ordinary suburban commercial strip. There is an
unused trail paralleling Boones Ferry; it would be nice to walk it rather than drive (who
would want to walk) on Boones Ferry. I do like the landscaping along the street in
front of Lake Grove School.”
� “I love the Lake Grove swim park! This is a treasure and we should do everything we
can to preserve it.”
� “Please also be very cautious about changing traffic flow. I have serious concerns
about not being able to turn left across on-coming traffic. Having to drive an extra
half mile and turn could be enough to keep me away.”
Lake Grove Market Analysis ♦ Retail Market Analysis 39
Appendix D. Business Owner Survey Results Section 1: Business Information & Operations
1. What is the nature of your business? (33 respondents) � More than any other category, 30.3 percent of respondents reported that their
business provides professional services. Restaurant and financial/insurance/real
estate businesses are operated by 18.2 percent of respondents.
� “Other” businesses account for 24.2 percent of respondents and include heath care,
auto repair, and education facilities.
2. How long have you been operating this business in Lake Grove? (32 respondents)
� Most respondents (68.8%) report operating their business in Lake Grove for more than
ten years.
� No respondents reported opening a business in Lake Grove within the past year. Just
over thirty percent of respondents have operated their business for less than ten
years.
Lake Grove Market Analysis ♦ Retail Market Analysis 40
3. Name up to 3 advantages or strengths you associate with doing business in the Lake Grove shopping district. (26 respondents)
� Most respondents note that their proximity to a variety of freeways is a strength of
doing business in Lake Grove. Specific freeways mentioned include Highway 217
and Interstate 5.
� Other respondents note that Lake Grove’s attractive setting, small town feel, and
sense of community are all business strengths.
� Three respondents specifically mention Kruse Way as helpful to their business.
4. Please share any disadvantages (if any) to doing business in Lake Grove. (24 respondents)
� Most respondents reported that a lack of accessibility is a disadvantage to doing
business in Lake Grove. This is demonstrated by a lack of bike lanes, bus service, and
inhospitable pedestrian conditions.
� “No bike lanes; lots of car traffic with no turn lanes and then bunches up.”
� “Boones Ferry Road traffic is difficult and dangerous. Downtown Lake Oswego is
treated more favorably by the city council. Chamber of Commerce favors
downtown as well.”
� “Crossing the road – not enough U-turns or turn bays.”
� “Not as walkable as I would like.”
� “Getting across Boones Ferry Road! Although adequate food and grocery and auto
resources exist, there are insufficient retail stores to serve all needs.”
5. How would you characterize your current business activity level (i.e., last 12 months of operation)? (30 respondents)
� Almost half of respondents report steady activity (43.3%). Thirty percent report
moderate growth.
� Just over a quarter of respondents report declining activity (26.7%). No respondents
report rapid expansion.
Lake Grove Market Analysis ♦ Retail Market Analysis 41
6. Which description below best characterizes your plans to expand or reduce your operation in the next one to two years? (30 respondents)
� An overwhelming majority of respondents (60.0%) do not plan on making any
changes to their business in the next one to two years.
� However, almost a quarter of respondents plan on expanding their operations soon
(20.0%). Only one respondent will reduce operations and one plans to relocate.
7. Please check any type of investment or improvement you have made in your
business in the last two years. (30 respondents) � Forty percent of respondents have added additional products and services to their
inventory. Just over forty percent of respondents added additional promotional
activities (43.3%).
� Just over a quarter (26.7%) report having made physical improvements to their
facility’s layout or design, and 30 percent made system improvements.
Lake Grove Market Analysis ♦ Retail Market Analysis 42
8. Please check any type of investment or improvement you plan on making in the next one to two years. (29 responses)
� Like the previous question, about forty percent (41.4%) of respondents plan on
making physical improvements to their stores or offices.
� Less than a quarter of respondents (20.7%) do not plan on making any improvements
to their business in the next two years.
Lake Grove Market Analysis ♦ Retail Market Analysis 43
9. In addition to a strong economy, what are the critical factors for the success and expansion of your business (check ALL that apply) (30 respondents)
� Most respondents cite public access as the most critical contributing factor to the
success of their business (60.0%).
� Qualified labor (33.0%) and up-to-date equipment/technology (33.3%) are also
commonly listed as critical factors.
� An equal number of respondents stress the importance of financing, foot traffic, and
complementary businesses (23.3%).
Lake Grove Market Analysis ♦ Retail Market Analysis 44
10. What are some of the major issues or obstacles facing your business today? (Please check the TOP FIVE priority issues.) (28 respondents)
� A strong majority of respondents reported that the current condition of the economy
is the largest obstacle faced today (75.0%).
� General operating cost was the next most frequently reported obstacle (50.0%),
followed by a lack of customer traffic (32.1%).
11. Please expand on any of your answers to the question above. If you checked
"City/County/State code or regulations," please explain the issues or obstacles (10 respondents).
� “Signage - I am in a building where all the signs need to be the same - why do each
of us need to get a permit for a sign - it should be the landlord’s responsibility for the
permit and we just get a sign to match all others ( I have been there 2 years and still
no outside signage - permit costs too high for a small business person.)”
� “As an attorney with 29 years on Boones Ferry Road I have no real obstacles except
occasionally government relation affecting not me, but other businesses trying to
develop. My biggest concern is pedestrian access up and down Boones Ferry, and
particularly getting across the four lane road.”
Lake Grove Market Analysis ♦ Retail Market Analysis 45
� “Fewer customers than before. Building needs a frontage makeover. Insurance &
other costs need to be reduced. Parents who have lost their jobs can't afford our
goods and services.”
12. To keep your business healthy and competitive, which of the following types of information or assistance are important to your company’s growth? (Please check ALL that apply) (13 respondents)
� Most respondents report that marketing/advertising information is important for their
business to remain healthy and competitive (55.6%). The next most popular response
is market property and façade improvements (44.4%), followed by lean business
practices (37.0%).
� No respondents feel like they need help with loan preparation.
13. Are you interested in participating in a cooperative business marketing effort to
attract customers to the Lake Grove District or to encourage residents to shop locally? (28 respondents)
� Yes – 67.9% (19 respondents)
� No – 32.1% (9 respondents)
Lake Grove Market Analysis ♦ Retail Market Analysis 46
Section 2: The Future of the Lake Grove Shopping District & Business in Lake Grove
14. What identity or image would you like to see the Lake Grove Shopping District
develop for itself as a unique business district attractive to residents, employees and visitors? (21 respondents)
� “We need to tame the four lane street and make the corridor neighborhood friendly
visually and behaviorally. To attract people here, the place has to have attractions
and be attractive utilizing the natural features as much as possible. We need an
identity manifested in a logo and an inviting gesture of welcome.”
� “Unique building facades that tie all businesses together – but not a copycat of
downtown Lake Oswego.”
� “A more walkable area where people can park and do a number of activities, like
groceries, coffee, tutoring all at the same time.”
� “I would like it to become more pedestrian friendly so that we can have more retail
opportunities succeed, and more human life in the business corridor now dominated
by auto traffic.”
15. What types of businesses would you like to see the Lake Grove Shopping District attract or grow to improve its business mix? (21 respondents)
� Respondents suggest that they would like to see additional apparel shops, a book
store, and an office supply store in addition to more small retail shops.
� “Lake Grove needs an image similar to downtown LO. Restaurants, entertainment,
shops, theaters. It makes me want to have an experience here.”
� “A more walkable area where people can park and do a number of activities, like
groceries, coffee, tutoring all at the same time.”
� “Neighborhood-type businesses for local residents. We don’t need more traffic from
outside the area. There are too many cars on Boones Ferry now.”
16. What could Lake Grove businesses do to attract more local residents? (21 respondents)
� “Fliers promoting what we have. A Lake Grove Business Directory. Special events that
block off the street and rout through traffic down 217 to the freeways.”
� “Advertise to tell us what is available in the area. Maybe a business fair for residents
to see what is in their area. Many LG businesses are closed on Sunday - they could
stay open at least for the afternoon.”
Lake Grove Market Analysis ♦ Retail Market Analysis 47
� “Advertise and feature LG businesses in the Review on a regular basis. Create more
of a "village" concept with common areas, outdoor venues/events, excellent
restaurants/retail stores, etc. BUY LOCAL discount card.”
� “Fix the traffic flow on Lower Boones Ferry Road, especially the left hand turners. It's
becoming a slow, scary trip. Improve access to Post Office!”
� “I think that we could attract not only local home-owning residents, but also office
dwelling consumers with more pedestrian ease and more information on what's
here.”
17. What could Lake Grove businesses do to attract more visitors and other shoppers who live out of the area? (16 respondents)
� Many respondents noted that their suggestions for helping Lake Grove attract new
local residents would also help attract visitors and out of area shoppers.
� “Door to door fliers to all buildings and businesses in the 97035 zip code. Coupon
books to all 97035 addresses.”
� “Establish an identity that creates a street worthy of coming to see.”
� “Marketing and advertising.”
18. Please provide us with the following information. Please know that names, numbers and email addresses will be separate from other survey responses, which will only be used in aggregate. (23 respondents. The company names provided appear below.)
� Springcreek Counseling
� Import Auto Parts
� Gubanc’s Pub
� Johnson Acupuncture
� Law Office of Sonya Fischer
� Lake Music Center
� Executive Accounting, Inc.
� Lake Grove Garden Center.
� Andrews Furniture Galleries
� Pacific West Bank
� Shirley A. Bass, Attorney at Law
� Motor Cars by Vic
� Vic’s Auto Center Inc.
� Laurence Spiegel
� Mainland Property Management
� Naomi’s Lampshades
� Jenike Development and Real Estate
� Kumon Math and Reading
� Summit Financial Advisors
� John W. Lundeen / Attorney PC
� Rose L. Hubbard, Attorney at Law PC
Lake Grove Market Analysis ♦ Retail Market Analysis 48
19. Please share with us any other comments you may have. (9 respondents)
� “We're located in Kruse Way, so our focus will be a bit different. There are reasons to
tie the two districts together as we share services between the districts. Kruse needs
better retail/restaurant access without going downtown.”
� “In general, my clients like coming to my office, just off Kruse Way. However, the
Lower Boones Ferry Road area is another matter altogether. A hodgepodge which I
hope will soon be improved.”
� “I would like to see some serious consideration for the safety of pedestrians and
children. We see a lot walking here, especially near McDonald’s and I worry about
people on the narrow sidewalks with cars that don't stop for pedestrian signals.”
Lake Grove Market Analysis ♦ Retail Market Analysis 49
Appendix E. Retail Market Factsheet