retail analysis & merchandising plan

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RETAIL ANALYSIS

MERCHANDISING PLAN

presented to:

July 2012


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Copyright 2012 CATALYST COMMERCIAL. The information provided herein is deemed reliable and is subject to errors, omissions, change of terms and / or conditions. Prepared by Catalyst Commercial, a Texas based retail con-sulting and market research frm that combines strategy, technology and retail analytics to deliver high-impact retailer recruitment and development strategies to local governments, private developers, retailers and economicdevelopment organizations.

5307 Mockingbird Lane 5th Floor Dallas, Texas 75206 972.999.0081 Phone catalystcommercial.net Edinburg Retail Analysis & Merchandising Plan PAGE 2

Nelda Ramirez

Executive Director Edinburg Economic Development Corporation

602 West University

Edinburg, TX 78539

Dear Ms. Ramirez,

Catalyst Commercial, Inc. (Catalyst) has been retained by the City of Edinburgs Economic Development

Corporation to conduct an analysis of the retail trade area of Edinburg and to develop a retail strategythat has the highest propensity for success given the assets and demand drivers within Edinburgs trade

area. Catalyst has observed the retail trading patterns from within Edinburg and surrounding retail nodes

to delineate Edinburgs primary retail trade area. Demographic and psychographic proles of this same

primary trade area were then analyzed to assess consumer spending propensities to determine the retail

categories which would best be received by the local market. Additionally, Edinburgs workforce and student

populations were assessed to determine the retail demand generated by those factors. Finally, existing and

potential retail sites and corridors were analyzed to determine which retail uses they could accommodate.

The results of this Retail Merchandising and Recruitment Plan are reective of current market trends within

the trade area. Then intent of this effort has been to ensure that future development in Edinburg will be

consistent with market and economic factors and align with the internal objectives of the citys stakeholders

and residents. The following is the result of the analysis conducted by Catalyst, as well as, the methodologies

and rationales used to generate those outputs.

We look forward to working with the City of Edinburg in its continued success.

Best Regards,

Jason Claunch

President

Catalyst Commercial, Inc.

COVER LETTER


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EXECUTIVE SUMMARY

The City of Edinburg is the county seat of Hidalgo County, Texas and had a 2011 estimated population of 79,147. Edinburg

experienced an astonishing population growth rate of 59% between the years 2000 and 2010. The delineated Primary

Trade Area (PTA) for Edinburg had a 2011 estimated population of 269,968 and is expected to increase by over 10.5% by

the year 2016 to a population of nearly 300,000. This same PTA corresponds to a drive time of 16 minutes and a concentric

ring of 7.5 miles from downtown Edinburg. Edinburgs existing residential retail demand is large and is growing at a rapid

rate.

Edinburg also has a signicant commuter retail demand that is generated by US Highway 281 and the University of Texas

Pan American (UTPA). UTPAs 2012-2013 student population is expected to be 19,555 and of this amount over 13,000 areclassied as commuters on a daily basis per UTPA. UTPAs student enrollment is expected to be over 22,000 by the year

2015. Additionally, US Highway 281 has documented daily trafc counts of over 33,000 north of the Business 281 intersection

and over 106,000 at the southern city limits. Over 73,000 vehicles on a daily basis either enter or exit US Highway 281 within

the Edinburg city limits and conrms the strength of the existing commuter demand.

The visitor retail demand of Edinburg is dominated by two groups: 1) older retired citizens of the United States and Canada

who travel to the Edinburg/Rio Grande Valley during the winter months (Winter Texans); and, 2) citizens of Mexico (Mexican

nationals) who cross into Texas on a regular basis for their retail needs (trafc counts from the three international bridges

closest to Edinburg were utilized for this report). The combined annual total retail purchases of the winter Texans and

Mexican nationals within the greater Edinburg area is over $1,600,000,000 and each of these two demographic groups

have unique and specic retail demands and needs that must be satised.

Existing demand within the City of Edinburg include: 1) the high trafc volumes of US Highway 281 of between 33,000 and

106,000 vehicles per day; 2) Edinburg is the county seat of Hidalgo County and is already home to many government

institutions and their employees; 3) the 2012 daytime employment population of the city is estimated at 38,168; 4) UTPA has

a 2012 student population of over 19,500 students; 5) the Shoppes at Rio Grande shopping center corridor that presently

has over 500,000 square feet of space occupied by national retailers; and, 5) Edinburgs existing medical industry and the

two medical use corridors within Edinburg that contain ve hospitals and over 1,000 hospital beds and accompanying

medical ofce buildings. It should be noted that over 800 babies are delivered monthly within Edinburgs hospitals and this

newborn population gure equates roughly to the student population of a typical Texas middle school (one new middle

school population per month).

The City of Edinburgs retail clusters are dominated along six retail corridors. Of these six corridors, the West University

corridor (UTPA), the US Highway 281/Trenton Road corridor, along with the medical and retail corridors of McColl and

Trenton Roads, offer retailers immediate opportunities to open stores to take advantage of the existing and growing

population base and demand drivers.

The City of Edinburg is the gateway into the Rio Grande Valley for travelers originating north of the Valley. Because of

Edinburgs history and geography, the city is seen as a desirable place to live and raise a family and has been experiencing

a strong middle class growth rate. From a retail perspective, Edinburg offers a strategic geography for new store growth

and expansion as a new growth alternative to its peer competitors.


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TABLE OF CONTENTS

Section I PROPERTY ANALYSIS

Section II TRADE AREA DELINEATION Primary Trade Area

Drive Time Analysis

Concentric Ring Analysis

Section III POPULATION

Section IV INCOME

Section V ETHNIC PROFILE

Section VI EDUCATION PROFILE

Section VII TRAFFIC COUNT ANALYSIS

Section VIII MARKET ANALYSIS Expenditures and Market Potential

Section IX TRADE AREA DEMAND MATRIX Lifestyle Segmentation / Psychographic Analysis

Section X RETAIL SUMMARY

Section XI DEMAND DRIVERS

Section XII COMPETITIVE ADVANTAGES

Appendix I MERCHANT MATRIX

Appendix 2 AERIAL MAP

Appendix 3 TRADE AREA DELINEATION MAP

Appendix 4 PRIMARY TRADE AREA MAP

Appendix 5 DRIVE TIME, CONCENTRIC RINGMAP

Appendix 6 POPULATION MAP

Appendix 7 INCOME MAP (MEDIAN)

Appendix 8 INCOME MAP (AVERAGE)

Appendix 9 TRAFFIC COUNT MAP


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PROPERTY ANALYSIS

Map 1 Source: Catalyst

The City of Edinburg is a medium sized city with a population of approximately 79,000.

Because of Edinburgs larger size there exist many retail developments throughout the

entire city. However, the citys main retail clusters and corridors are: 1) East University Drive

and downtown Edinburg; 2) West University Drive and the University of Texas Pan American

retail corridor; 3) the Shoppes of Rio Grande Shopping Center located at the Trenton Road

and US Highway 281 intersection; 4) the Canton Road and US Highway 281 intersection; 5)

the Monte Christo Road and US Highway 281 intersection; 6) the McColl Road corridor; and,

7) the medical use dominated corridors of McColl Road and Trenton Road. It should also be

recognized that Edinburg has the advantage ample real estate land parcels for residential

subdivision development.

1. The US Highway 281 corridor is the dominant major thoroughfare corridor within Edinburg

and traverses the city in a north-south direction and connects Edinburg and the Rio

Grande Valley to the City of San Antonio which is located approximately 228 miles to the

north. Because Edinburg is the county seat of Hidalgo County the area surrounding the

countys courthouse became downtown Edinburg. The downtown area and main retail

thoroughfare for downtown is East University Drive which connects the courthouse with US

Highway 281 to the east. Located at the University Drive and US Highway 281 intersection

are several national and regio nal fast food restaurants and pharmacies. However, as you

travel westward along University Drive this corridor is dominated by local restaurants and

businesses. There is one shopping center within this same corridor that offers some national

retailers (i.e.: Family Dollar, Fallas Paredes), but the vast majority of businesses are local. Real

estate in-ll locations and redevelopment will characterize the future development of this

corridor. Located at the US Highway 281/Canton Road intersection are two retail clusters

that appear to service Edinburgs local population. Specically, located at the northeast

corner of this same intersection is a Lacks Furniture Warehouse anchored shopping center,while located at the southwest corner of this intersection is a Carmike Movie Theater

anchored retail cluster. The Lacks anchored center is a more traditional shopping center

and contains many local businesses and restaurants. The Carmike Movie Theater building

is located amongst a congregation of other buildings and businesses, including a Super 8

Motel and a Rodz Bar and Grill restaurant. The overall Carmike Theater/Super 8 Motel and

Rodz restaurant development can be confusing for customer access and does not have a

good appearance, however there exists a large acreage parcel south of and adjoining the

Theater that offers good visibility to US Highway 281.

2. Located west of the Hidalgo County courthouse along West University Drive is the University

of Texas Pan American (UTPA) campus, which is the single four year university located

within the Rio Grande Valley and a dominant institution within Edinburg and the Valley.

Beginning near the UTPA campus and traveling west for approximately 2.5 miles is the West

University Drive retail corridor that terminates near the McColl Road intersection. Located

directly across from the UTPA campus is several regional and national restaurant chains

and businesses and there is a new retail shopping center under development. However,

it appears that additional retail establishments targeting the unique needs and wants of

Clo

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PROPERTY LOCATION MAP 1

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PROPERTY ANALYSIS

Map 1 Source: Catalyst

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SchuniorSt

UniversityDr

SpragueRd

TrentonRd

OwassaRd

SugarRd

Jac

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PROPERTY LOCATION MAP 1college students is needed as at this time there is no college centric related cluster of retail

businesses. Located further west of the UTPA campus along West University Drive are several

big box retailers with several national fast food restaurants and businesses developed

alongside the big box developments.

3. Located at the northwest quadrant of the US Highway 281/Trenton Road intersection is The

Shoppes at Rio Grande shopping center that is anchored by several national big box stores

and local restaurants. Specically, the tenants of this shopping center include: JC Penneys,

Academy Sports and Outdoors, TJ Maxx, Burlington, Ross, Lane Bryant and McDonalds.

The existing portion of this center that is open consists of roughly 400,000 square feet and

is fully leased. At this time there is on-going construction activity that will bring on line anadditional 100,000 square feet which will bring the total size of this center to over 500,000

square feet. Additionally, several smaller and larger acreage pad sites are available. The

Shoppes at Rio Grande Shopping Center is the dominant soft goods shopping center within

the Edinburg PTA and offers great potential for retailers researching new store locations

outside of the congested McAllen, Texas market.

4. The US Highway 281/Monte Christo Road intersection is the rst retail intersection travelers

from San Antonio encounter when driving into Edin burg and the Rio Grande Valley. National

truck stop and fast food restaurants are located at this intersection offering limited choices

for the traveling consumer. Approximately a one-half mile to the west is the Business 281/

Monte Christo Road intersection and this intersection also consists of national fast food

restaurants and a regional grocery store. There exists ample real estate opportunities at

these two intersections for new retail development.

5. The McColl Road corridor traverses the western portion of Edinburg in a north-southdirection and is approximately 4.5 miles in length and connects West University Drive in the

north to Owassa Road in the south. The northern and central portions of this corr idor have

been developed with separate big box anchored shopping centers that appear to be very

successful. The southern portion of this same corr idor, along with the Trenton Road/McColl

Road intersection and corridor, has been developed with various retail uses, but medical

use associated with ve nearby hospitals are the dominant use. Doctors at Renaissance

Hospital 506 beds, anchors this corridor and is located at the intersection of McColl Road

and Owassa Road. Located to the north, along Trenton Road, are: Edinburg Childrens

Hospital 107 beds; Edinburg Regional Medical Center 130 beds; South Texas Behavioral

Health Center 134 beds; and, Cornerstone Regional Hospital. These ve hospitals and their

close proximity to one another are serving as a catalyst for additional medical ofce and

research developments, which in turn will create a demand for new retail restaurants and

businesses. Edinburgs healthcare industry is a dominant employment and retail catalyst for

the northern portion of Rio Grande Valley and the Edinburg PTA.

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TRADE AREA DELINEATION


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PRIMARY TRADE AREA

Understanding where your target customers originate from is a crucial step in any retail

recruitment initiative. Accurate delineation of the trade area i n which retailers can reasonably

expect to attract customers is the rst step in this process. Additionally, identifying the

demographic prole of the consumers which are currently shopping at a specic location is

helpful in understanding success factors, identifying potential complementary tenants and

development marketing strategies for both a particular retail district, as well as, individual

businesses. Catalyst delineated the City of Edinburgs Primary Trade Area (PTA) by sampling

customer data points from various in-market retail locations to determine the customers point

of origination in relation to the areas of study. While retailers, land developers and real estate

brokers have traditionally used radius rings and/or drive times to quickly compare prospectivesites against one another, more often than not, such arbitrary measures do not accurately

depict actual consumer trading patterns and is not sufcient for the decision making process

of advanced retailers.

For the purpose of this study, approximately 4,200 customer samples were collected between

April 30, 2012 and May 30, 2012 from seven in-market retail locations within Edinburg.

Approximately 400 samples were collected at one out of market retail location located

in McAllen, Texas during the months of January 2012 and March 2012. Sample collection

locations included: 1) Walmart University Street; 2) Walmart McColl Road; 3) the Hidalgo

County Courthouse; 4) the East University Street corridor; 5) the Monte Christo Road corridor;

6) the Shoppes of Rio Grande Shopping Center; 7) the medical corridor of McColl Road and

Owassa Road; and, 8) Walmart & Sams Club McAllen. Traversing the middle portion of this

PTA is US Highway 281 which is also the dominant retail corridor within Edinburgs PTA. The 5%

of the sample points located furthest from downtown Edinburg were deemed outliers and

were eliminated. Then approximately 65% of the remaining samples were utilized to delineate

the Edinburg PTA. The City of Edinburgs city boundaries, as with many of the surroundingcommunities, are difcult to distinguish from a c ustomers point of view as these cit y boundaries

are often a local or minor thoroughfare street. Because of these indiscernible boundaries

and the large population of Edinburg and her surrounding cities, many retail customers are

unaware when a city boundary is crossed and within what city they are purchasing their

retail goods. The distribution of the sample points when plotted on a map illustrate the large

geography associated with Edinburgs PTA, and show many documented customers traveling

from McAllen, Pharr, Mission and throughout Edinburg itself.

The 2011 population of the Edinburg PTA was approximately 269,968 and has a projected

2016 population of 298,615 which represents a sizeable growth rate of over 10.5%. Median

household incomes for the PTA in 2011 and 2016 are estimated at $31,463 and $37,992,

respectively, which represents a growth rate of over 20%. The estimated average household

size of the PTA in 2011 and 2012 is 3.38 persons, while the median age of the PTA for these same

years is estimated at 28 years old.

In order to accurately prole retailers for this PTA, a tier system was developed by Catalystbased upon a population density class system. Using density classication, the Edinburg PTA


PRIMARY TRADE AREA MAP 2

MARKET TYPE TABL E 1 DESCRIPTION

Tier 1 UrbanDense urban markets with large workforce and resi-dential populations. Prevalent pedestrian trafc.

Tier 2 Urban PeripheralPeripheral to CBD with dense workforce and residen-tial populations and signicant pedestrian trafc.

Tier 3 SuburbanMature, predominantly residential-centric market withdispersed pockets of retail and ofce.

Tier 4 ExurbanPredominantly residential, bedroom community,growth markets. Large retail pockets, with less denseofce populations.

Tier 5 Micropolitan Removed from metropolitan markets.

Table 1 Market Type (Source: Catalyst) Map 2 Primary Trade Area Map (Source: Catalyst)

matches the characteristics of a Tier 3 Suburban Market from a tier list of 1 through 5, with tier

1 being urban and tier 5 being rural. Over 40,000 retailer locations were proled and retailers

were segmented using population distribution among ve market types to establish a tier

classication for each retailer.



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DRIVE TIME ANALYSIS

Drive time analysis is useful when understanding impact from one region or store to another,

but uses an algorithm to estimate drive time distance based upon road types, established

roadway speeds and roadway conditions. Drive time based trade areas are often used

to analyze trade area characteristics and are useful for comparison of proposed sites and

against both existing store locations, as well as, other prospective site locations.

Drive Time Map 3 reects the boundaries of a 16 minute drive time from downtown

Edinburg, and captures approximately 65% of the customer samples (and is also included

within the Appendix). The actual drive time analysis for Edinburg ill ustrates the importance

of US Highway 281 in a north-south direction and State Highway 107/University Drive in an

east-west direction. The inuence of US Highway 83 in the southern most portion of the PTA

should also be noted and this same Highway expands the PTA to the east and west due

to the ease of driving on this Highway. The chart and table below show the number of

samples that are captured by separate drive time geographies.

DRIVE TIME MAP 3

continuedTRADE AREA DELINEATION

ST UD Y D ESC RI PT ION CO UNT C AT CHM EN T

1 Minute Drive Time 28 1.4%












13 Minute Drive Time 1,094 53.6%








21 Minute Drive Time 1542 75.5%22 Minute Drive Time 1565 76.7%

ST UD Y D ESC RI PT IO N CO UNT C AT CHM EN T




Chart 2 Concentric Ring Catchment (Source: Catalyst) Table 2 Drive Time Analysis (Source: Catalyst) Map 3 16 Minute Drive Time(Source: Catalyst)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

1 MileRing

2 MileRing

3 MileRing

4 MileRing

5 MileRing

6 MileRing

7 MileRing

7.5 MileRing

8 MileRing

9 MileRing

10 MileRing

11 MileRing

12 MileRing

CATCHMENT CHART 1 - DRIVE TIME



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CONCENTRIC RING ANALYSIS

Traditional concentric rings are another method used to quickly analyze trade area

characteristics, but are not as accurate in identifying existing constraints of the actual PTA

for Edinburg. Retailers use concentric ring studies for quick comparisons of both existing

stores and prospective new site locations. Using a concentric ring analysis, a 7.5 mile radius

from downtown Edinburg captures approximately 65% of the customer samples and

corresponds to the adjoining 7.5 Mile Radius Map.

Many retailers still rely on concentric ring data to analyze trade areas, and although this

methodology is not as accurate as customer derived delineation it can still be useful forquick reference and comparison purposes. Demographic analysis of concentric ring trade

areas are useful, but these assume a consistently even population distribution and do not

take into account such factors as natural boundaries (lakes, rivers), demographic shifts,

manmade barriers (interstate freeways), shopping patterns, drive time impacts and other

geographic factors. The chart and table below show the number of samples that are

captured by each geography.

RADIUS RING MAP 4

Chart 2 Concentric Ring Catchment (Source: Catalyst) Table 3 Concentric Ring Analysis (Source: Catalyst) Map 4 7.5 mile ring (Source: Catalyst)

continuedTRADE AREA DELINEATION

STUDY DESCRIPTION COUNT CATCHMENT

1 Mile Ring 159 7.8%

2 Mile Ring 413 20.2%

3 Mile Ring 663 32.5%

4 Mile Ring 791 38.7%

5 Mile Ring 955 46.8%

6 Mile Ring 1,126 55.2%

7 Mile Ring 1,284 62.9%

7.5 Mile Ring 1,353 66.3%

8 Mile Ring 1,408 69.0%

9 Mile Ring 1,490 73.0%

10 Mile Ring 1,549 75.9%

11 Mile Ring 1,594 78.1%

12 Mile Ring 1,657 81.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

1 MileRing

2 MileRing

3 MileRing

4 MileRing

5 MileRing

6 MileRing

7 MileRing

7.5 MileRing

8 MileRing

9 MileRing

10 MileRing

11 MileRing

12 MileRing

CATCHMENT CHART 2 - CONCENTRIC RINGS

POPULATION


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POPULATION ANALYSIS

The City of Edinburg is the county seat of Hidalgo County and is located within the south

Texas region known as the Rio Grande Valley. The Rio Grande Valley is comprised of Hidalgo,

Cameron, Starr and Willacy Counties. The Rio Grande Valley is growing rapidly in population

and had an estimated 2010 population of 1,180,000 which represents a growth rate of over

33% when compared to the 1999 Valley wide population. It is estimated that by the year 2020

this same region will have a population of over 1,455,000 which represents a 23% growth rate

over the 2010 data. Due to the large existing population and the high growth rate there will

continue to be a need for additional retail businesses and services throughout the Rio Grande

Valley and the City of Edinburg.

The estimated 2011 population of the Edinburg Primary Trade Area (PTA) was 269,968 and

has a projected 2016 population of 298,615 which represents a signicant growth rate of over

10.5%. Median household incomes for the PTA in 2011 and 2016 are estimated at $31,463 and

$37,992, respectively, which represents a growth rate of over 20%. The estimated average

household size of the PTA in 2011 and 2012 is 3.38 persons, while the median age of the PTA

for these same years is estimated at 28 years old. The characteristics of the PTAs population

are summarized as: 1) young families with multiple children; 2) Hispanic or Latino dominated;

and, 3) working class. The sizeable population growth expected in the PTA, coupled with

the large median income growth, illustrates the many opportunities for new retail to locate

within Edinburg to meet the existing and growing retail needs of the population. It should also

be noted that the University of Texas Pan American had a 2011 student enrollment of over

19,000 with nearly 890 students living on campus with an undisclosed number of students living

in close proximity to the University. Some of the students living on campus and nearby the

campus in student based housing are included within this demographic information because

students have the option of lling out the United States census with either their parents home

or their school address.

It should also be recognized that Edinburg has the advantage ample real estate land

parcels for residential subdivision development. The City of Edinburg has in place appropriate

development standards to protect and enhance the citys existing destination for middle

class residential subdivision development.

POPULATION DENSITY

The population of Edinburgs PTA and the numerous communities surrounding Edinburg and

throughout the Rio Grande Valley has increased with the major transportation corridors of both

the automobile and railroad. The rst major thoroughfare through Edinburg was US Highway

281 (now Business 281) and this road connected Edinburg/ the county seat to nearby McAllen,

Texas to the south and San Antonio to the north. In more recent times US Highway 281 was

POPULATION MAP 5

TRADE AREA TABLE 4 PTA 1 MILE 3 MILES 5 MILES 7.5 MILES 16 MINUTES

2011 Populat ion 269,968 11,677 66,860 127,143 262,273 290,856

Projected 2016 Population 298,615 12,630 73,555 139,900 288,958 318,759

Table 4 Trade Area Population (Source: ESRI) Map 5 Population (Source: ESRI)

POPULATION

constructed to better manage the higher volumes of trafc associated with Edinburg and the

overall Rio Grande Valley and nearby Mexico. Residential developments have followed and

paralleled US Highway 281 and now as Edinburg as grown you nd higher po pulation densities

along Edinburgs major transportation corridors and arteries throughout Edinburgs PTA.

The majority of Edinburgs more densely populated neighborhoods are bounded by Schunior

Street to the north, Freddy Gonzalez Drive to the south, US Highway 281 to the east, and 7th

Avenue to the west. On the east side of US Highway 281 there are additional highly densely

populated neighborhoods situated between East University Drive to the north and Sprague

Street to the south.

POPULATION


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BUILDING PERMITS

The City of Edinburg tracks the building permits for residential, commercial and industrial

projects as a total of construction project dollar valuation, the value of all construction

projects granted building permits by the City are combined to illustrate land developments

growth or decline per year. Overall, building permits from the years 2004 through 2011 have

been reviewed and illustrates clearly the high growth period of the last decade through the

beginning of the recession in 2009 and the current growth realities of Edinburg. The years 2006

and 2007 had the highest dollar amount building permits at over $80 million and $77 million,

respectively. The lowest dollar amount of building permits issued was in 2008 and 2009 during

the recession, with total amounts of over $17 million and $28 million, respectively. In 2011 total

building permits valuation increased dramatically to over $56 million and City expects the

2012 gures to be even higher. The relevance of this data is that it continues to support the

overall statement that Edinburgs continued rapid growth as a residential, industry and retail

destination.

BUILDING PERMITS TABLE 5 2004 2005 2006 2007 2008 2009 2010 2011 2012

January $417,850 $637,415 $12,785,934 $33,523,300 $1,614,492 $441,245 $1,749,000 $33,175,421 $6,803,265

February $6,824,830 $4,097,586 $1,717,470 $8,057,789 $3,415,600 $1,296,000 $2,600,976 $1,533,248 $1,986,957

March $3,702,448 $4,989,755 $10,838,400 $5,950,786 $798,685 $3,871,802 $939,485 $3,018,975 $3,034,569

April $4,526,875 $4,177,800 $8,982,575 $3,112,575 $12,791,357 $2,139,518 $7,952,618 $1,500,000 $1,430,103

May $1,246,100 $1,568,005 $6,800,889 $6,679,888 $2,413,987 $1,275,988 $1,077,780 $5,115,909 $1,017,268

June $2,229,652 $16,737,515 $12,752,844 $2,537,516 $6,948,750 $2,331,275 $577,591 $1,934,098 $2,157,946

July $ 1,654,900 $2,688,050 $4,374,350 $439,300 $4,793,725 $516,875 $1,782,338 $352,078

August $26,292,867 $2,546,894 $3,050,906 $2,127,910 $14,309,490 $911,900 $2,315,850 $1,509,165

September $1,601,580 $9,672,580 $3,267,648 $1,680,110 $18,307,797 $1,272,800 $1,668,900 $3,677,066

October $1,963,560 $1,429,200 $5,562,760 $4,017,000 $2,737,350 $2,400,734 $499,200 $1,899,100

November $2,718,508 $578,360 $1,679,161 $6,629,287 $2,188,268 $855,000 $1,555,182 $795,305

December $2,839,956 $604,665 $8,850,106 $2,568,550 $1,852,220 $184,900 $6,110,704 $2,251,547

Total $56,019,126 $49,727,825 $80,663,043 $77,324,011 $72,171,721 $17,498,037 $28,829,624 $56,761,912 $16,430,108

Table 4 Trade Area Population (Source: ESRI) Map 5 Population (Source: ESRI)

POPULATION

INCOME


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INCOME ANALYSIS

Median household income with the Edinburg PTA in 2011 was approximately $31,463 as compared to the 2011 State of Texas median household income of $48,259. There are several

reasons for the income disparity between the Edinburg PTA and the State of Texas, one of which is because Edinburg, as with the majority of the entire Rio Grande Valley region, has

historically been an agricultural center dependent upon less costly manual labor wages and salaries. A second rationale for the lower median income is because Mexico is located just

across the Rio Grande River (approximately 13 miles to the south), and historically immigrants from Mexico have continuously moved into Edinburg and the Rio Grande Valley area and

these same immigrants have kept the labor costs low.

INCOME TABLE 6 PTA 1 MILE 3 MILES 5 MILES 7.5 MILES 16 MINUTES

Average Household Income $46,982 $33,266 $44,750 $47,594 $47,247 $45,209

Median Household Income $31,463 $22,116 $31,225 $31,291 $36,963 $29,777

Table 6 Income Summary (Source: ESRI) Map 6 Average Income (Source: ESRI) Map 7 Median Income (Source: ESRI)

AVERAGE HH INCOME MAP 6

INCOME

MEDIAN HH INCOME MAP 7

ETHNIC PROFILE


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Hispanic (Any Race)

Non-Hispanic

ETHNIC PROFILE

ETHNIC PROFILE PIE CHART 4

ETHNICITY TABLE 7 PTA 1 MILE 3 MILES 5 MILES 7.5 MILES 16 MINUTES

White Alone 86.4% 83.9% 85.3% 87.4% 73.8% 86.5%

Black Alone 0.8% 0.5% 0.9% 0.8% 1.2% 0.7%

American Indian Alone 0.4% 0.6% 0.5% 0.4% 0.6% 0.4%

Asian Alone 1.7% 0.1% 1.9% 2.0% 1.3% 1.5%

Pacic Islander Alone 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%

Some Other Race 9.3% 12.9% 9.8% 8.1% 20.5% 9.6%

Two or More Races 1.5% 2.0% 1.6% 1.4% 2.6% 1.4%

Hispanic (Any Race) 89.4% 95.3% 89.8% 89.4% 88.2% 89.7%

Non-Hispanic 10.6% 4.7% 10.2% 10.6% 11.8% 10.3%

Chart 3 & 4 Ethnic Prole (Source: ESRI) Table 7 Ethnicity (Source: ESRI)

White Alone

Black Alone

American Indian Alone

Asian Alone

Pacific Islander Alone

Some Other Race

Two or More Races

ETHNIC PROFILE PIE CHART 3

EDUCATION PROFILE


14/48



0.0%10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

PTA

1MILE

3MILES

5MILES

7.5MILES

16MINUTES

College Graduate

Some College

High School Graduate

Less than High School

EDUCATION PROFILE

The Edinburg Consolidated Independent School District (ECISD) consists of 42 school

campuses that include: twenty-nine elementary schools; six middle schools; four high

schools; and, three alternate schools. The total enrollment for the district at the end of

the 2010-2011 school year was approximately 33,066 students, which a racial make-up of

approximately 97% Hispanic, 2% White and 1% Other. Educational attainment is reported

for persons aged 25 or older, as this is the traditional age by which most people have

completed their formal education. However, a trend has developed in recent years with

people returning to school past age 25. These gures provide a picture of the general

educational level of the population. Educational attainment is usually associated with

higher incomes, and approximately 22% of the Primary Trade Area (PTA) over age 25population had an associates, bachelors, masters or doctorate degree vs. the State of

Texas average of 27% and a U.S. national average of approximately 30%.

THE UNIVERSITY OF TEXAS PAN AMERICAN

The presence and students of the University of Texas Pan American (UTPA) represent a

signicant source of demand for retail goods and services within Edinburg and throughout

the greater Rio Grande Valley. As of the 2011-2012 academic year the University had

a full-time student enrollment of 19,034 and the 2012-2013 academic year is proposed

to have a student of 19,555 (a 2.7% increase). At this time, UTPAs administrative ofce

has estimated that their 2015 student population will be approximately 22,000. In 2011-

2012 approximately 890 students lived on campus vs. 13,000 daily commuters. Finally,

approximately 81% of UTPAs student population lives in Hidalgo County (Edinburg is

county seat), 13% live in either Starr, Willacy and/or Cameron Counties (Hidalgo, Starr,

Willacy & Cameron Counties comprise the Rio Grande Valley), while less than 7% of the

student population lives outside of the Rio Grande Valley.

A November 2010 UTPA Economic Impact of the University of Texas-Pan American

report was conducted to quantify UTPAs total economic impact upon Edinburg and

surrounding communities. Including construction, on-going school maintenance,

salaries and discretionary spending the total school contribution was approximately

$492,000,000. Of this amount, over $189,700,000 was attributed to student spending that

does not include tuition, books and/or room and board. Further research indicates that

this equates to discretionary spending per student of roughly $5,332 in 2010, which is

much higher than the USA national college student discretionary spending average of

$4,367. Utilizing the conrmed 2010 discretionary spending amount per student the total

amount of UTPA student discretionary retail spending for the 2012-2013 school year is

estimated to be over $202,000,000. As noted in the preceding text, college students tend

to have relatively high levels of disposable income, often supplemented by parental

assistance and nancial aid. The student population represents a consistent source of

demand for certain retail goods and services (educational supplies, bars, restaurants,

groceries and clothing) that needs to be recognized and supplied.

EDUCATION TABLE 8 PTA 1 MILE 3 MIL ES 5 MILES 7. 5 MILES 16 MINUT ES

College Graduate 22.1% 10.6% 22.4% 21.2% 21.6% 20.7%

Some College 17.5% 17.0% 18.6% 17.1% 17.2% 17.0%

High School Graduate 20.3% 20.0% 20.0% 19.5% 20.2% 20.6%

Less than High School 40.1% 52.4% 38.9% 42.2% 41.1% 41.7%

University of Texas-Pan American: UTPAs Economic Impact to the Rio Grande Valley. 2010 Chart 5 & 6 Education (Source: ESRI) Table 8 Education (Source: ESRI)

EDUCATION PROFILE CHART 5

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Edinburg PTA Texas USA

College Graduate

Some College

High School Graduate

Less than High School

EDUCATION PROFILE CHART 6

TRAFFIC COUNT ANALYSIS


15/48



TRAFFIC COUNTS

Average daily trafc volumes are an important measurement by which most retailers

evaluate potential sites for new stores. Generally speaking, higher trafc counts are more

attractive to retailers as they are typically associated with higher retail sales potential. The

State of Texas Department of Transportation (TxDOT) supplied trafc count data for 2010,

as well as, City of Edinburg data from 2009, 2010 and 2011 were reviewed for Edinburg and

are also represented in the adjoining table and map.

Four trafc locations were situated along US Highway 281 and data for both north and

south bound trafc lanes were collected over a 24 hour period. The US Highway 281 data

collection locations and their respective trafc counts were: 1) US Highway 281 north of USHighway 83 106,000 vehicles per day; 2) US Highway 281 at Trenton Road intersection

99,000 vehicles per day; 3) US Highway 281 at University Drive intersection 63,000 vehicles

per day; and, 4) US Highway 281 north of the Business 281 split 33,000 vehicles per day. A

review of this data highlights that approximately 73,000 vehicles are exiting and entering

US Highway 281 within the City of Edinburg city limits every day, which is a very noteworthy

gure and illustrates the importance of the existing commuter trafc within Edinburg. It

should also be noted that the recorded trafc volumes of 106,000 through 63,000 vehicles

per day are considered to be extremely high to moderately high for highway and freeway

locations throughout the State of Texas and the USA.

An additional series of trafc data collection points along Uni versity Drive were also reviewed

and summarized as: 1) East University Drive east of US Highway 281 18,000 vehicles per

day; 2) West University Drive just west of Business 281 i ntersection 28,000 vehicles per day;

and, 3) West University Drive at the Sugar Road intersection 33,000 vehicles per day.

This information demonstrates the higher trafc volumes along University Drive the closer

a commuter travels towards UTPA. Daily trafc counts of over 33,000 on commuter and

thoroughfare streets are considered high within the State of Texas and the USA.

Trafc counts were also collected at the McColl Road/Trenton Road intersection and the

Jackson Road/Trenton Road intersection. A review of the trafc counts from these two

intersections illustrates the apparent movement of the local neighborhood populations

to the south and east, or towards the City of McAllen and US Highway 281, respectively.

These same volumes range from approximately 8,048 to 20,416 and reect volumes that

are slightly elevated for typical neighborhood intersections.

TRAFFIC COUNTS TABLE 9

MAP LOCATION INTERSECTION24 HOUR

COUNTSSOURCE

1 Highway 281 n of Highway 83 106,000 TxDOT

2 Highway 281 at Trenton Road 99,000 TxDOT

3 Highway 281 at University Drive 63,000 TxDOT

4 Highway 281 n of Business 281 split 33,000 TxDOT

5 E University Drive e of Highway 281 18,000 TxDOT6 W University Drive w of Business 281 28,000 TxDOT

7 W University Drive at Sugar Road 33,000 TxDOT

8 McColl Road n of Trenton Road 8,048 City of Edinburg

9 McColl Road s of Trenton Road 13,825 City of Edinburg

10 Trenton Road w of McColl Road 8,719 City of Edinburg

11 Trenton Road e of McColl Road 13,826 City of Edinburg

12 Jackson Road s of Trenton Road 16,096 City of Edinburg

13 Trenton Road e of Jackson Road 14,341 City of Edinburg

14 W University Drive e of Jackson Road 20,416 City of Edinburg

14 Monte Christo Rd w of Business 281 13,978 City of Edinburg

15 Business 281 s of Monte Christo Rd 13,032 City of Edinburg

Table 9 Trafc Counts (Source: Edinburg)

continuedTRAFFIC COUNTS


16/48



Clo

snerBlvd

SchuniorSt

UniversityDr

SpragueRd

TrentonRd

OwassaRd

Sugar

Rd

Jackson

Rd

McC

ollRd CantonRd

Vete

rans

Blvd

Clo

sner

Blv

d

FreddyGonzalezDr

33,000

63,00028,000

20,416

8,048

8,719

99,000

18,000

33,000

16,096106,000

14,341

13,826

13,825

TRAFFIC COUNTS MAP 8

Map 8 Trafc Counts (Source: Catalyst)

MARKET ANALYSIS


17/48



MARKET POTENTIAL ANALYSIS BY CATEGORY

Supply estimates are sales to consumer by establishment and exclude business to business

sales. Demand estimates reect the expected amount spent by consumers at retail outlets.

A positive (+) value represents leakage and a negative (-) value represents over supply.

Data for this section is provided by ESRI, MediaMark Research and InfoUSA.

The City of Edinburg and the corresponding Edinburg PTA have a registered over supply

of total retail trade and food and drink sales which is consistent with regional trade area

and/or high trafc volume corridors. The reason for this regional trade classication is due

to the presence of US Highway 281 traversing the city limits of Edinburg and the already

stated signicant trafc volumes utilizing this same Highway. It should also be noted thatUS Highway 281 is the dominant north-south major thoroughfare for the western portion

of the Rio Grande Valley and is already experiencing large regional shopping center

development.

The UTPA and downtown Edinburg corridors, along with the medical use corridors of McColl

Road and Trenton Road, also contribute to the regional retail trade area designation of

Edinburg.

Another retail strength indicator used by retailers, land developers and economists to

gauge the overall retail strength of a particular area is the Push-Pull Factors. Retail trade

Pull factors are used to measure the relative strength of a regions ability to attract people

from outside its city limit borders. Retail trade Push factors are the opposite of Pull. Regions

with the ability to attract more non-resident retail consumers could capture more dollars

for the region. Regions capturing non-resident dollars not only benet from an increase of

employment opportunities, but also from an increase in the county and city sales taxes

paid by non-resident consumers.

Counties with a per capita sales greater than the per capita sales of the state would result

in a trade pull factor greater than 1.00, and trade pull factors greater than 1.00 represent

the local retail businesses are able to attract or capture more trade from non-resident

consumers. The 2011 Hidalgo County Trade Factor adjusted for per capita income was

1.63, or signicantly higher than the State of Texas average pull factor for all Texas counties.

The 1.63 pull factor is another documented measurement illustrating the existing strength

and importance of the retail industry within Hidalgo County, which includes Edinburg.

SUMMARY

Specic information pertaining to the State of Texas, Hidalgo County, the City of Edinburg

and the Edinburg PTA were all reviewed for this overall retail leakage/supply study and

retail push-pull factor study. Since Edinburg is classied as a regional retail draw a strategic

focus of continued regional recruitment should be implemented for the many commercial

real estate opportunities located with Edinburg that are situated along US Highway 281,

as well as, the regional, local and medical related opportunities associated with the other

identied retail corridors within Edinburg. The retail niche needs of the local population,

the identied non-resident local consumers, the winter Texans and the Mexican national

customers all provide great opportunities for the City of Edinburg to capture these known

retail purchases.

TRADE AREA DEMAND MATRIX


18/48



INDUSTRY GROUPDEMAND

(RETAIL POTENTIAL)SUPPLY (RETAIL SALES) RETAIL GAP

SURPLUS /

LEAKAGE FACTOR

Total Retail Trade and Food & Drink (NAICS 44-45, 722) $1,403,497,322 $2,375,102,024 -$971,604,702 -25.7

Total Retail Trade (NAICS 44-45) $1,207,025,861 $2,025,632,572 -$818,606,711 -25.3

Total Food & Drink (NAICS 722) $196,471,461 $349,469,452 -$152,997,991 -28.0



SURPLUS /

LEAKAGE FACTOR

Motor Vehicle & Parts Dealers (NAICS 441) $293,814,637 $545,065,161 -$251,250,524 -30.0

Automobile Dealers (NAICS 4411) $252,135,660 $500,189,645 -$248,053,985 -33.0Other Motor Vehicle Dealers (NAICS 4412) $19,658,137 $13,907,092 $5,751,045 17.1

Auto Parts, Accessories, and Tire Stores (NAICS 4413) $22,020,840 $30,968,424 -$8,947,584 -16.9

Furniture & Home Furnishings Stores (NAICS 442) $44,242,713 $99,703,250 -$55,460,537 -38.5

Furniture Stores (NAICS 4421) $35,723,251 $82,468,942 -$46,745,691 -39.6

Home Furnishings Stores (NAICS 4422) $8,519,462 $17,234,308 -$8,714,846 -33.8

Electronics & Appliance Stores (NAICS 443/NAICS 4431) $25,630,708 $52,393,086 -$26,762,378 -34.3

Bldg Materials, Garden Equip. & Supply StoresNAICS 444)

$42,995,829 $66,292,605 -$23,296,776 -21.3

Building Material and Supplies Dealers (NAICS 4441) $40,788,453 $64,732,206 -$23,943,753 -22.7

Lawn and Garden Equipment and Supplies Stores(NAICS 4442)

$2,207,376 $1,560,399 $646,977 17.2

Food & Beverage Stores (NAICS 445) $267,362,721 $443,394,211 -$176,031,490 -24.8

Grocery Stores (NAICS 4451) $241,346,798 $389,365,426 -$148,018,628 -23.5

Specialty Food Stores (NAICS 4452) $20,593,397 $45,364,279 -$24,770,882 -37.6

Beer, Wine, and Liquor Stores (NAICS 4453) $5,422,526 $8,664,506 -$3,241,980 -23.0

Health & Personal Care Stores (NAICS 446/NAICS 4461) $39,249,120 $64,117,106 -$24,867,986 -24.1

Gasoline Stations (NAICS 447/NAICS 4471) $194,763,062 $355,826,785 -$161,063,723 -29.3

Clothing and Clothing Accessories Stores (NAICS 448) $53,529,026 $47,849,497 $5,679,529 5.6

Clothing Stores (NAICS 4481) $40,165,084 $32,523,554 $7,641,530 10.5

Shoe Stores (NAICS 4482) $7,120,302 $7,281,456 -$161,154 -1.1

Jewelry, Luggage, and Leather Goods Stores(NAICS 4483) $6,243,640 $8,044,487 -$1,800,847 -12.6

Table 10: The following chart is a summary of the number of uses, market demand and sales potential and leakage

factor from within the study area. (Source: ESRI)

continuedTRADE AREA DEMAND MATRIX


19/48





SURPLUS /

LEAKAGE FACTOR

Sporting Goods, Hobby, Book, and Music Stores(NAICS 451)

$15,385,630 $17,244,073 -$1,858,443 -5.7

Sporting Goods/Hobby/Musical Instrument Stores(NAICS 4511)

$9,273,757 $12,983,008 -$3,709,251 -16.7

Book, Periodical, and Music Stores (NAICS 4512) $6,111,873 $4,261,065 $1,850,808 17.8

General Merchandise Stores (NAICS 452) $197,808,321 $293,551,679 -$95,743,358 -19.5

Department Stores Excluding Leased Depts.(NAICS 4521) $89,160,459 $170,708,516 -$81,548,057 -31.4

Other General Merchandise Stores (NAICS 4529) $108,647,862 $122,843,163 -$14,195,301 -6.1

Miscellaneous Store Retailers (NAICS 453) $21,275,715 $28,372,741 -$7,097,026 -14.3

Florists (NAICS 4531) $1,864,806 $2,674,033 -$809,227 -17.8

Ofce Supplies, Stationery, and Gift Stores (NAICS 4532) $10,000,810 $11,428,097 -$1,427,287 -6.7

Used Merchandise Stores (NAICS 4533) $1,324,560 $1,538,704 -$214,144 -7.5

Other Miscellaneous Store Retailers (NAICS 4539) $8,085,539 $12,731,907 -$4,646,368 -22.3

Food Services & Drinking Places (NAICS 722) $196,471,461 $349,469,452 -$152,997,991 -28.0

Full-Service Restaurants (NAICS 7221) $90,614,629 $164,299,434 -$73,684,805 -28.9

Limited-Service Eating Places (NAICS 7222) $90,100,829 $159,448,505 -$69,347,676 -27.8

Special Food Services (NAICS 7223) $11,293,100 $15,484,399 -$4,191,299 -15.7

Drinking Places - Alcoholic Beverages (NAICS 7224) $4,462,903 $10,237,114 -$5,774,211 -39.3

Table 10: The following chart is a summary of the number of uses, market demand and sales potential and leakage

factor from within the study area. (Source: ESRI)



20/48



LIFESTYLE SEGMENTATION/PSYCHOGRAPHIC ANALYSIS

The 72-segment Community Tapestry system classies U.S. neighborhoods based on their

socioeconomic and demographic compositions. The versatility of Community Tapestry

provides several methods of dividing the 72 Neighborhood segments into summary groups

for a broader view of U.S. neighborhoods. There are 15 summary groups that include

traditional geo-demographic factors, including family status, afuence, age, family status,

ethnicity, and degree of urbanization.

TOP TAPESTRY SEGMENTS (PRIMARY TRADE AREA) TABLE 11

RANK TAPESTRY SEGMENT CATEGORY % OF HOUSEHOLDS

1 Los Novios Espaniola 40%

2 Los Padres Espaniola 24%

3 Anos de Quincenera Espaniola 16%

4 Doublewides Specialties 4%

5 Los Trabajadores Espaniola 3%

6 Los Padrinos Espaniola 3%

7 Regents Creme de la Creme 3%

8 Los Solteros Espaniola 2%

9 Legacy Years Specialties 2%

10 Grand Masters Creme de la Creme 1%

LOS NOVIOS

Los Novios neighborhoods are neighborhoods with the highest percentage of married-

with-children households. So their Spanish name, which means newlyweds is a perfect

t. Whats more the median-age range of residents is in the lowest category 20s and

low-30s. Fittingly, these areas rank highest in children under six at nearly 75-percent-above-

average. But they also have a 50-percent-higher-than-average level of kids six- to 13-years-

old. While many of the residents are married, there are also above-average levels of single-

parent households: with the highest level (interestingly) in single-male-with-children at over

75-percent-aboveaverage. The highly urban Los Novios areas share several demographics

with their fellow Espaniola segments, including a high percent of residents without high-

school educations (three-times-the national-average); median household incomes toobroad to classify without misleading market researchers; and high rankings on income

from public-assistance (three-times-above-average). However, the residents also rank at

an average level of income from their predominantly blue-collar jobs. They rank extremely

high in ve occupations: farming/shing/forestry (a whooping seven-times-the-average),

building maintenance (two-and-a-half-times-average), construction and production (both

at nearly two-times-average), and transportation (about 75-percent-above-average).

LOS PADRES

As anyone who knows anything about Hispanic culture knows, family is very important to

this demographic. In particular, parents are regarded as the kings and queens of their

castles. The aptly named Los Padres (Spanish for parents) neighborhoods weight in with

the second-largest percentage of children which, of course, means there are many

parents as well. In these highly urban Espaniola neighborhoods, the percentage of married-

couple households is just below the national-norm; the level of single-female-parent homes

is 25-percent-above-average; and (interestingly) the level of single-male-parent homes is

more than 50-percent-aboveaverage. The children in the homes span all ages, but show

the highest ranking in kids under-six (nearly 50-percent-above-average). This is obviously

because of the residents relatively young age: The median age of Los Padres areas is

in the 30s. The median household income in these areas is too broad to classify without

misleading market researchers. But by looking at other factors, one can assume the

income levels are lower than-average. These residents have two-and-a-half-times-average

number of people with less-than-high-school educations. They also rank very high in four

blue-collar occupations: farming/shing/forestry (two-and-a-half-times-average), building

maintenance (two-times-average), construction (over 50-percent-above-average), and

production (over 50-percent-above-average). This group also shows a 50-percent to two

times-average level of income from public-assistance.

ANOS DE QUINCENERA

Among the six predominantly Hispanic Espaniola market segments, two o f them share the

highest median age range Anos de Quincenera is one of them. That fact, combined with

the fact that these areas are home to the largest percent of married-with children families,

0

20,000

40,000

60,000

80,000

100,000

120,000

EmpireBuilders

GrandMasters

MarquisClass

AmericanKnights

UrbanSquires

Regents

CharmedLife

SingPrey

KindredSpirit

MiddleoftheRoad

WhiteCollarStatus

BlueCollarStarts

SocialWhirls

ManagingBusiness

NestBuilders

Gainfullyemployed

Strapped

GrayEminence

FallYears

SllintheGame

Gurus

Wizards

Apprences

HardActtoFollow

SMseeksSF

SoloActs

DownButNotOut

UrbanMoms

ApronStrings

SolemnWidows

EducatedEarners

SuburbanSingles

HardHats/HairNets

BondsandBabies

GreatGeneraons

CoupleswithCapital

KithandKin

SublimeSuburbia

StocksandScholars

MarmaladeandMoney

StatelySuburbs

CountryVillas

PastoralVistas

TerraFirma

StockinTrade

RoughandReady

TheOutback

Cornucopia

LandBarons

FerleAcres

Breadbasket

FarmersCircle

CropsandTractors

HarlemGentry

EastSide

UpperEastSide

LowerEastSide

Betweenjobs

AnosdeQuincenera

LosPadres

LosNovios

LosPadrinos

LosSolteros

LosTrabajadores

GoldenHeritage

EastMeetsWest

GroupQuarters

Doublewides

Centurions

LegacyYears

Collegian

Undefined

PYCHOGRAPHIC AFFLUENCY CHART ( < MORE AFFLUENT - LESS AFFLUENT > ) CHART 7

Chart 7 Afuency Chart (Source: STI Popstats) Table 11 Top Tapestry Segments (Source: STI Popstats)



21/48



has given the segment its name, which is a Spanish term that means parents with daughters

coming of marriage age. As a result, with older children under their roofs, these residents

may very likely be at the peak of their purchasing years. While the median household

income of the areas is too broad to classify without misleading market researchers, one

indicator in particular points to the lower-end of the income scale: Residents living in these

areas are seeking public assistance at a rate of over-50-percent-above-average. Bolstering

this assumption are the facts that these areas rank as blue-collar, and show only some high-

school education, but very little higher education. In fact, the highly urban neighborhoods

ranks at a nearly two-times-average-level of resident without high-school degrees. The

largely urban Anos de Quincenera areas show an average-level-of-income from wages/

salaries, with particularly high standings in building maintenance (over-50-percent-above-

average) and transportation (over-25-percent-above-average).

DOUBLEWIDES

In America there tends to be a particular stigma attached to living in mobile homes and

mobile home parks. But they are not all so called trailer trash. In fact, many people

chose this lifestyle as a preference for several reasons, including mobility and low-cost

housing. In fact, the median income of residents of Doublewides neighborhoods is a

very respectable high-$30,000s and $40,000s. Doublewides are areas were mobile homes

dictate the lifestyles of the residents, who share a median age in the 30s. While residents

in Doublewides do have a higher-than-average level of income from public-assistance,

many others are hardworking Americas, with a higher-than-average representation in

several manual-labor blue-collar occupations, including farming/shing/forestry (nearly

three-times-average), construction (75-percent-above-average), repair services (over-50-

percent-above-average), transportation (50-percent-above-average), and production

(nearly 50-percent-aboveaverage). These occupations are a reection of the residents

low educational achievements: There is an over-50-percent-average number of peoplewith less-than-high-school educations. However, 25-percent-above-average have high-

school degrees. Also owing to their residents ages, these areas have slightly more younger

children than older. They tend to have married-couple households, but also have a nearly

50-percenthigher-than-average number of single-fathers.

LOS TRABAJADORES

The Spanish-language name for this category should not be misconstrued to mean that

everyone is generating income from jobs. While an average level of Los Trabajadores

(workers) residents are generating income from their occupations, these neighborhoods

ranks the highest among the primarily Hispanic Espaniola areas for public-assistance

income: over four-and-a-half-times-above-average. But nonetheless these areas are

among the three segments within this category with the highest income levels: the

high-$30,000s to $40,000s. As a result, those who work are in all likelihood hard workers.

It helps that they are young: They are one of two segments with a median-age in the

20s. The dominant areas of employment for these workers are blue-collar jobs in farming/

shing/forestry (nearly four-times-average); building maintenance (over two-and-a-half-

times-average); and transportation, construction, and food preparation (all at or above

50-percent-higher-thannational-averages). Like other Espaniola segments, Trabajadores

have a higher-thanaverage-level of people with less-than-high-school educations (nearly

three-times average). Los Trabajadores areas have the highest percent of children of all

the segments, especially kids under six (over 50-percent-above-average). They are also

predominately single-parent homes, with about two-and-a-half-above-average levels of

both singlemale-parents and single-female-parents.

LOS PADRINOS

Among the predominantly Hispanic Espaniola segments, Los Padrinos is one of two segments

with a median age in the 40s. These neighborhoods also show higher percentages of

single-parent households than other segments. As a result, these areas have been names

Los Padrinos, which means godparents, a very common honorarium bestowed on older

singles in the Hispanic culture. The number of single-parent homes ranks high for both males

(75-percent-above-average) and females (over 75-percent-above-average). However,

these neighborhoods rank at an overall average-level of children in all age groups,

indicating that the homes are not bursting at the seams with kids. Los Padrinos areas also rate

the highest percentage of residents over-65-years-old in this category. Owing, no doubt, to

the older median age, these areas show above-average levels of widows/widowers and

divorcees. Los Padrinos is one of three segments within the Espaniola category with the

highest median-income levels: the high-$30,000s and $40,000s. While some of this income

is generated by jobs, they also rank high in public-assistance: about two-and-a-half-

above-average. Those who are employed are primarily blue-collar workers: presumably

a reection of a two-times the-national-average number of people with less-than-high-

school educations. The residents dominant job categories include building maintenance

(two-times-average), food preparation (50-pecent-above-average), and personal careand transportation (both 25-percent-above-average).

REGENTS

Regents are highly urban Crme de la Creme neighborhoods with the vast majority of their

residents in their 40s, fewer-than-average children under 17 years old, and a higher-than-

average number of 65-plus-year-olds. Though they have fewer children, the residents in

these areas have a higher-than-national-average quota of married couples. Also higher-

than-average are the number of college-educated residents, people employed in white-

collar management and professional positions, and income from retirement investments/

social security. The combination of income avenues, put these neighborhoods solidly in

the $70,000s to $80,000s median annual income range making their middle-age years

extremely nancially secure and materially comfortable.

LOS SOLTEROS

Among the six primarily Hispanic Espaniola neighborhood segments, the Los Solteros are



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among three with the highest income-levels: the high-$30,000s to $40,000s. However, that

doesnt mean they arent struggling, because other factors speak to people working hard

to make ends meet. For one things, these highly urban areas are home to predominately

single-households, in particul ar single-parent families: hence their name Los Solteros mean

singles in Spanish. They rank at two-times-the-national-average for single-male-parent

and singlefemale-parent households. A 50-percent-higher-than-average number of these

residents have never been married. There are above-average numbers of children of all

ages in the households, with the highest percent i n the younger group (under six-years-old)

and fewer in the oldest grouping (13 to 17 years old). Another fact pointing to their nancial

struggle is the high level of income from public-assistance: more than three-timesaverage

With a two-and-a-half-times-average level of residents with less-than-highschool educations,

residents of Los Solteros areas are employed in predominantly blu ecollar manual-labor jobs,

with higher-than-average rankings in all of these occupations: building maintenance, food

preparation, construction, production, transportation, healthcare support, and farming/

shing/forestry.

LEGACY YEARS

There are two images of that come to mind when you say senior citizen in the United

States. One is of a very well off retired person living out their golden years in comfort. A

second image is of an older person who is struggling to make ends meet and suffering

the indignities of a combination of old-age and low-income. Legacy Years are areas

representing households that are fully retired with residents on very tight budgets. The

median age in these neighborhoods is the 50s and low-60s, but they also have a nearly

three-times-the-national-average number of people over 65-years-old. The median

income of these households is the low-$30,000s or less. While many residents are drawing

on social security and retirement income, they also have a 75-percent-above-average

ranking in public-assistance. This group of senior citizens also ranks above-average onseveral occupational categories, which is either a reection of the employment of the

younger members of the neighborhood or the need for some seniors to continue working.

They show above-average levels of employment in both blue- and white-collar jobs in

these areas: healthcare support, building maintenance, farming/shing/forestry, protective

services, and food preparation. An above-average percent have high-school degrees,

but a higher percent have less-than-high-school educations. These areas have an average

level of married-couples and few children, but above-average levels of single-households

(over 50-percent-above-average), widows (well over two-timesaverage), and widowers

(over two-and-a-half-times-average).

GRAND MASTERS

Grand Masters are highly urban neighborhoods that enjoy the stature of their Crme de

la Crme brethren in most measured areas, including education, occupation, and family

composition. Grand Masters are home to 40-something white-collar professionals who are

married-with-children, college-educated, and employed overridingly in management

and professional positions. Residents in these areas enjoy incomes of between $70,000 and

$80,000 on average. While residents in Grand Masters earn an average level of income

from their management and professional positions, they also have a higher-than-average

population earning income from self-employment enterprises and interest/dividend

income. They have a slightly higher-than-average percentage of families with children;

with a modestly higher-than-average number of teens aged 13 to 17. Also, Grand Masters

have slightly over two-times-the-national-average in college-educated residents, and

nearly twice-the-average number of people in white-collar management positions.

RETAIL SUMMARY


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EXISTING RETAIL USES AND CATEGORIES

In an effort to better understand the retail potential of Edinburg, Catalyst completed a

comprehensive market wide study of the existing retailers within Edinburg. Data is compiled in the

Catalyst Merchant Matrix (see Appendix 1), and included the use by category and location. Further

analysis of the Catalyst Merchant Matrix allows for deeper insight into the distribution of uses of the

retail market within the PTA. The results paint the picture of the retail categories which exist and are

oversaturated, under supplied or void of representation. This data is useful in developing a clearer

understanding of what types of retail are existing in the market, as well as, what types of retail are

missing in the market for one reason or another. From the data compiled, Catalyst can begin to

formulate a game plan as to which retail categories should be considered further. Categories which

already have optimal market penetration and those which appear to be oversaturated shouldbe evaluated further to determine if these uses should be eliminated from consideration. Void or

underrepresented categories are evaluated based upon factors such as alignment with the vision

of the City, co-tenancy, demand/leakage analysis and demographic and psychographic proles

within the study area.

A review of the accompanying Category Table 11 conrms the large number of restaurants open

for business within Edinburg, and how these same restaurants are all contributing to the existing and

growing inuence of Edinburg as a retail hub destination. As the University Drive and Shoppes of

Rio Grande retail corridors further develop they will assist in cementing Edinburg as a leading retail

destination within the entire Rio Grande Valley.

CATEGORY TABLE 12 COUNT

Apparel Retail - 448110 14

Automotive Retailer - 4413 8

Automotive Service - 447190 9

Bank - 522110 11

Beer/Wine (no liquor) - 445310 1

Check Cashing/Pawn/Thrift - 522390 12

Child Care/Education - 624410 1

Convenience Store - 445120 27

Dollar/Variety Stores - 452990 7

Florist - 453110 4

General Merchandise Stores - 452910 2

Grocery - 445110 7

Hair Cutter/Salon - 812112 16

Hardware/Home Improvement - 444130 - 444110 2

Health & Beauty Care Locations - 453998 3

Health Clubs/Gyms - 713940 2

Hobbies/Craft/Art Supplies - 453998 - 451120 1

Home Furnishings - 442210 - 442291 5

Table 12 Retail Uses (Source: Catalyst)

Hotel - 721110 11

Liquor stores - 445310 4

Medical - Other - 621111 5

Medical - Supplies & Equipment - 446199 3

Movie Theater - 512131 1

Nail Salon - 812113 8

Ofce Products/Stationary - 322231 1

Other 11

Paint & Wallcoverings store - 444120 1

Pet Store - 453910 1Pharmacy - 446110 8

Rental Centers - 532310 3

Restaurant - American - 722110 12

Restaurant - Asian - 722110 5

Restaurant - Bakery - 722110 1

Restaurant - Bar/Nightclub - 722410 2

Restaurant - Burgers - 722110 3

Restaurant - Coffee - 722211 1

Restaurant - Ice Cream/Yogurt - 722211 3

Restaurant - Italian - 722110 1

Restaurant - Limited Service & Fast food - Burger - 722211 19

Restaurant - Limited Service & Fast food - Chicken - 722211 5

Restaurant - Limited Service & Fast food - Other - 722211 1

Restaurant - Limited Service & Fast food - Pizza - 722211 6Restaurant - Mexican - 722110 23

Restaurant - Pizza - 722110 - 722211 2

Restaurant - Sandwich/Deli - 722110 - 722111 9

Restaurant - Seafood - 722110 2

Restaurant - Sushi - 722110 2

Restaurant - Wings - 722110 2

Self Storage - 531130 1

Shoe Store - 448210 4

Spa - 812199 1

Sporting Goods Store - 451110 1

Tax and Investment Services - 541213 - 523930 2

Wireless Store - 443112 10

GRAND TOTAL

DEMAND DRIVERS


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LOCAL RETAIL DEMAND DRIVERS / NON-TRADITIONAL CONSUMERS

Typically, there are four demand drivers that

retail analysis & merchandising plan

Documents