Retailing History
Until the 1970s, Mound was a relatively self-contained community outside the ring of metropolitan influence. Because of that, Mound was able to capture a comfortable portion of its retail sales potential for little other reason than the fact that most people who lived in Mound also worked in or close to Mound.
Beginning in the 1970s, three important societal changes would impact retail sales in Mound:
| (1)Transportation became much more efficient in the Twin Cities, allowing
people greater mobility to shop and work further distances from their homes;
(2) More and more Mound residents
were commuting eastward for employment; and
(3) Women
were entering the work force in large numbers. These phenomena dramatically altered the spending habits of Mound residents. By the mid 1980s, many local retailers were not able to accommodate the market shift and as a result, retail sales dropped and a number of businesses closed. |
|
By studying Mound retail sales figures throughout the 1980s it appears that by 1986 the merchandise choice offered by Mound retailers fell below a critical mass necessary to constitute a convenient shopping district. As a result, large numbers of consumers began shopping elsewhere. Since 1986, retail sales have increased roughly 20-25% but Mound is still not capturing a majority of its retail sales potential.
Retail Potential
It is generally understood that a business district has two ways of capturing increased sales: 1) To increase the number of customers it serves and 2) To increase the dollar amount spent by those customers. By being proactive and realizing the market potential, Mound is ready to accomplish both of these tasks in the coming years.
Through redevelopment and fundamental changes in the structure of its business district, Mound plans to greatly increase consumer choice and convenience. Mound, initially, could capture two groups of new customers: (1) Mound residents who began to shop elsewhere in the 1970s and '80s, and (2) New residents who live west of Mound but commute eastward. As downtown Mound gains a reputation as a quality shopping district with recreational opportunities on Lake Minnetonka, a third customer group, metro-wide destination shoppers, could also be attracted to Mound and further diversify the retail mix.
In 1990, Mound captured roughly 35.8 million dollars in retail sales. This figure represents only 45% of the retail sales potential from Mound residents alone (based on average Minnesota statewide spending habits). Hoisington Koegler Group Inc., estimates that within two years of a substantial redevelopment project including targeted retail additions of 25,000+ square feet, the City of Mound could see an overall increase in retail sales by 68% or roughly $24 million from the 1990 level.
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