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
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.