Title
Receive a presentation on an analysis of trade area data collection methods and their role in supporting a data-driven economic development strategy in Farmers Branch.
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REQUESTOR:
Mayor Pro Tem Tina Bennett-Burton
BACKGROUND:
At the request of Mayor Pro Tem Bennett-Burton, staff conducted research on trade area data collection methods to assist with economic development efforts related to business acquisition and retention procedures. Trade area data helps the City understand customer demographics, shopping patterns, and market trends.
There are three primary methods for defining and analyzing retail trade areas: the customer-origin (Walmart) method, the Census-based method, and cell phone mobility data.
1. Transaction - Based/Customer-Origin (Walmart) Method: This method uses actual transaction data - such as ZIP codes collected at the point of purchase - to map shoppers' home locations. Major retailers (e.g., Walmart and grocery anchors) often use this method internally to evaluate store performance.
Strengths:
* Highly accurate representation of real customer behavior
* Reflects actual spending patterns
* Useful for evaluating the performance of existing businesses
Limitations:
* Only available for existing businesses
* Does not provide competitor visitation data
* Require retailer cooperation
2. Demographic Radius/Census-Based Method: This method relies on publicly available demographic data (population, household income, age distribution, daytime population, etc.) within a defined geographic radius.
Strengths:
* Cost-effective
* Useful for early-stage site evaluation
* Appropriate for recruitment marketing materials
* Supports retail leakage analysis
Limitations:
* Assumes consumers shop near home
* Does noHowt measure actual visitation behavior
* May overstate or understate true trade capture
3. Location Analytics/Cell Phone Mobility Method: This method uses aggregated and anonymized mobile device data to track visitation patterns to ...
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