The Cape Charles Community Enhancement Board (VA Main Street) contracted, via VA Main Street, the research firm of Arnett & Muldrow to conduct an economic and market research study and survey to capture
Customer Base
Research found that 33% of the retail customers come from Cape Charles, 48% from Eastern Shore in general.
The Primary Trade Area for the town is the logical zip code 23310. However, Secondary TA is made up of 5 zips, 48% or approximately 12,125..
Retail Market – Leakage
As is probably well understood, there are some gaps in the Cape Charles retail market. The research notes that there could be close to $50 million in lost dollars due to theses gaps, $10 million in Cape Charles alone.
How to convert this loss into opportunity?
To Capture Retail Leakage in Key Categories, we can attempt to add a General Merchandise store the size of a typical Dollar General is in the 10-15k range.
Clothing retail, around 4,034 sq ft. Most demand is in family clothing stores ($2.3m in combined trade area leakage) and women’s clothing ($500k in leakage)
Sporting goods – 2,874 sq ft., Home furnishings – 3,150k sq ft., Furniture – 2,008k sq ft. Shoes – 1,650 sq ft., Electronics – 1,971 sq ft., and Hobby & Toy – 987 sq ft are all identified as possible opportunities.
Retail – Opportunities
Restaurants – Gained $5million in drawing customers from outside of the town, a share of 22% compared to the benchmark (8%). This provides an opportunity to matrix and market the Shore along with Coastal Virginia as a dining destination with restaurants, a brewery, and distillery.
The report also notes that there could be a $2 million opportunity for fast food.
The Cape Charles’ trade area gains with another grocery, close to $5.9m combined with a conventional (Food Lion), produce and seafood markets.
The Town leaks about $1.2m (Food Lion is outside of town). The lack of choice for grocery needs is hurting Cape Charles.
Sigh.
There is not enough MARKET to justify the capital expenditures necessary to develop and stock a:
Grocery store.(The one in town failed)
Electronics store. (Rent is high, and you only buy electronics when needed, or randomly when in an area that has excessive EXTRA income, and that ain’t Cape Chuck)
Furniture Store. (Again, stocking a store costs MONEY that requires a ROI.)
Womens clothing stores exist. They open and close all the time. Gee, maybe they are not supportable either.
General Merch? Umm, what is Watsons?
Hobby and toy stores. Ya already got a bait and tackle shop( A great one!!) and that is the predominant hobby on the shore. How many people in Cape Chuck are gonna run out on a Tuesday and buy a toy?
An almost 1700 square foot shoe store? Dear Lord, y’all are doing your level best to run tourists(the ones with the EXCESS MONEY) out of town and you expect someone to put up the $$$ to open a store that may get 1000 sales a year? Really???????????
The restaurants are doing okay, so you want to stick in a few fast food joints to DIMINISH THEIR CUSTOMER BASE? Brilliant!!!! Truly Brilliant!!!!
Honestly? This report could have been accomplished if the powers that be just went to Kelly’s and ASKED QUESTIONS.
For the price of a few beers and a plate of fried pickles.
We need a combination laundromat/dry cleaner/car wash!
Friend, there is actually a market for that combo. Go for it!!!!