Report on Development of Shopping Center Sept. 1968
INFORMATION RELATIVE TO THE ECONOMY OR MERIDIAN, IDAHO
Prepared for the Meridian Development Company
For the Purpose of Assisting in the Development
of a Shopping Center
September 1968
Preparedby:
I
Milton P, Matthews, Ph.D,
1166 Second Avenue
Sal`. Lake City, Utah 84103
INSTITUTE OF MARKETING RESEARCH
.-
~"
I NI'P.ODUCT I ON
This study is concerned with the feasibility of establishing
a neighborhood-type shopping center in Meridian, Idaho. Meridian is a
city that has been situated along a major highway going from Boise to-
ward Nampa, Caldwell, and Eastern Oregon. It is locat;cd approximately
9 miles from Boise, 11 miles from Nampa, 17 driving miles from Caldwell,
and 10 miles from Kuna. Meridian city itself has had slow but steady
population increases since 1940. The surrounding area has substantial
population which could be counted on as a secondary trading area with
the city to be primary. In the Meridian census district about 36~ of
the population is within Meridian city and 64~ i.s in the surrounding
area.
These surrounding areas tend to be basically agricultural
although in recent years more and more people have built homes there
because of the advantages of living in this type of area (with horses,
C~ gardening, etc.). Many of these people commute to Boise,, Nampa, Cald-
well, and other areas for emplo}nnent purposes.
Typically, the Meridian type of situation'sees retail stores
developing slowly, even more so than would normally be expected. This
is because of the dependence on larger stores in other shopping areas,
such as Nampa and Boise. Eventually, however, retail stores do develop
as population totals justify the same and gradually conditions on maturity
can be noted. At first the retail establishments have difficulty carry-
ing large assortments of goods. As a result, local residents shop else-
where and a "chicken and egg" type of situation prevails. Eventually,
~_~ the sheer convenience of shopping closer to home means that. convenience
' goods stores will be established on a modest basis. Banks and other
r 1 financial institutions also come in.
At the present time Meridian is experiencing a situation in
which newer retail facilities are needed and popul.ati.on totals now
justify the same, This analysis, then, is concerned with determining
the proper composition of a shopping center for Meridian; which retail
service and financial institutions would be justified, what size space
they should occupy, etc,
~ Standard marketing research techniques are used i.n this study.
r -y These involve the measurement of. popu].ati.on, income, employment, retail
~~T.: spending, habits and attitudes, hi.ghraay patterns and other pertinent
~-~1 informat ion.
The writer had some difficulty in analyzing Meridian because
many government statisti.es normally available were not to be had for
Meridian (because the city limits do not include the bulk of the popu-
lati.on in the surrounding rural. areas). Because of this it was necessary
to resort to other sources of information as well as the writer's ocan
personal background in conducting shopping center studies for Ada and
~; 7 Canyon 'Counties as well as Eastern Oregon. A strong element of judgment
1
i
was necessary because of the proximity of Meridian to Boise, which will
be even more accessible with the completion of. the interstate. highway.
Balancing this off, however, is the convenience factor of shopping closer
to home without the attendant traffic congestion, par}:ing violations, and
other nuisances involved while shopping in a larger city. The general
maturing of the Meridian business community was also given considerable
study because this, in the final analysis, is the best indication of the
attitudes of residents within the trading area toward a given shopping
area,
Professional Qualifications: Milton P. Matthews, 1166 Second Ave., Salt Lake City, Utah
Graduate Degrees: M.S, and Ph.D., New York University, Graduate Business Admin.
Teaching: N. Y. University, University of Utah, U, of Hawaii, U. of Wisconsin,
Rangoon (Burma) University, U. of North Dakota.
Major Publication: Robinson, Robinson, Matthews, Retail Store Organization and
Operations, Prentice Hall Inc., N.Y., pp, 282, (college text).
Present Positions: Professor of Marketing, University of Utah.
President, Institute of Marketing Research.
Consulting and Research Clients:
Institutions: Bureau of Economic and Business Research, University of Utah.
Salt Lake City Chamber of Commerce.
Honolulu Downtown Improvement Assn.
Research Firms:
Financial Firms:
Retail Firms
Research and Planning Associates
National Planning and Research
Prudential Federal Savings
State Savings & Loan
Zion's Savings & Loan
Logan Savings & Loan
Western Savings & Loan
1st Fed. Savings & Loan (Boise)
Lockhart Corp.
Ford Finance
Idaho 1st National Bank (Boise)
Idaho Bank & Trust
Walker Bank & Trust
Zion's 1st National Bank
Commercial Security Bank (Ogden)
Bank of Utah (Ogden)
Beehive State Bank
Granite National Bank
American National Bank
Bank of Southern Utah (Cedar City)
Bank of Salt Lake
State Bank of Orem
Safeway Stores
Albertson's
Associated Food Stores
Skaggs Drug Centers
Twenty other prominent retail organizations
Developers: Upited Park City Mines (Park City)
M, Morrin & Sons
Bettilyon's Inc.
Wallace-McConaughy Corp.
Mu lcock Construction
Loyalty Enterprises (Honolulu)
Ainamalu Properties (Honolulu)
Ten other prominent developers
Miscellaneous: Well known newspapers, television and radio stations in the
Intermountain Area.
Various advertising agencies.
3
GENC:AL CO;~CLUSIO:VS
Tite writer concludes on tha basis of the information contained
in this reporC and other data compiled by field investigations that
there is a need for a neighborhood shopping center in Meridian, Idaho.
Further, that the property held by the Meridian Developers would be
appropriate for such a development.
Meridian and the surrounding areas have grown modestly but
steadily during the past twenty years. It is expected that they will
continue to grow. The population in the trading areas is now sufficient
to justify a neighborhood-type shopping center. The number of business
firms in Meridian and the estimated sales of these companies give an
indication of what could be expected with better buildings, facilities,
and more adequate assortments of merchandise.
As much as possible, it would be desirable for the developers
to encourage transplanting of Meridian businesses from the downtown
area to the shopping center. These businesses are established in
Meridian and have a consumer acceptance but often need more modern
facilities. Transplanting, therefore, would be good for both the
present Meridian retailers as well as for the developer of the property.
It is recommended that the shopping center be planned now in
its entirety even though the development may take place in two or three
stages.
4
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^•
^~~
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Recommended Co:~iposition of the Center
Classification
of Establishment
P.ecommended
Square Footage
of Building
Convenience Goods Stores
Food Stores
Drug Stores
Hardware and Sporting Goods Stores
S:;oppinr Goods Stores
Family Clothing and Shoes
Floral, Photo, Gifts and Stationery
Selected Services
Launderette )
Shoe Repair )
Beauty Shop )
Barber Shop )
Bark )
Other
Restaurant )
Service Stations )
Offices
Reserve for Future Expansion
Total
12,000
4,000
4,000
8,000
2,000
6,000
3,000
15,000
16,000
70,000
:i
TRAllING ARRA ANALYSIS
Because of the inability of the writer to obtain sales figures
for Meridian from the U. S. Census of Business and other similar sources,
as well as from State of Idaho sources such as tax receipts, it was
necessary to make comparative analyses by other business figures to come
up with an estimated spending by residents as an alternative to the ana-
lysis of the Meridian trading area.
Using an approach utilizing per capita figures the total expendi-
tures by residents of the primary and secondary trading ares would be
$8,778,000. Using a comparative analysis between Meridian postal receipts
and those for other similar cities throughout the State of Idaho, the
writer concludes that spending in the Meridian trading area would be
between $7,500,000 and $8,000,000. Other analysis comparing business
conditions and activities Cmeasured in terms of number of establishments,
square footage of retail and service establishments, as well as dollar
volumes, when available) also show that the ranges given above are well
within the realm of probability.
Statistics given on the pages to follow show the expenditures
in the primary and secondary trading areas broken down by types of
retail stores. The primary trading area was considered to be the city of
Meridian itself whereas the secondary area was considered to be the sur-
rounding area that could logically be expected to trade in Meridian if a
shopping center were available. This area is designated by a circle on
the trading area map to follow. Some of this same trade comes from the
secondary trading at the present time but a much greater portion of this
potential would be attracted if better facilities were available.
6
So:ne judgment is necessary in converting spending figures to
potential sales figures for an area. Typically only a part of the spending
in a community of this size remains in the immediate area and sane purchases
are made in other cities. In the case of Meridian most of this outside
spending goes to Boise, Nampa and Caldwell, but there would be scattered
spendir~ in other areas as well. In making trading area analyses it is
necessary to use aggregate patterns and to disregard odd and splintered
segments that have little or no meanies (daughter goes to Homedale to visit
mother and does some shopping while there, etc.).
In converting spending figures to potential sales figures a compar-
ison of similar types of communities elsewhere is worthwhile because gen-
erally residents of an agriculturally-based area in a certain proximity to
other larger cities would behave in a predictable pattern. The experience
of the writer in making studies throughout the Mountain States was utilized
in making value judgments for Meridian.
Generally most goods can be classified into three categories:
convenience, shopping and specialty goods. The first of these is called
"convenience goods" because customers normally buy in the nearest accept-
able store to home or place of employment; mainly from the place of resi-
dence. Goods that fall into this category are food, drugs and other
merchandise that would not require a great deal of planning, and would be
purchased rather frequently.
The fact that convenience goods are, purchased in the nearest
acceptable store makes it possible to analyze a given site with a consider-
able degree of accuracy. In a given community or area it can be noted that
persons and/or families in given income groups tend to spend a certain
amount per year in different retail establishments. In Utah communities,
for example, annual per capita purchases for certain merchandise lines
r)
~'
caould be m..aningful. As the income~i.ncreases, this figure alsc tends to
increase as more expensive food is purchased (especially in meats), and a
--~ gr.:ater quantity of food is needed (normally for more entertaining and
other social events). It is possible to analyze the population in a given
area, to estimate income categories of residents, calculate total spending
.3 and estimate the spending that would be done in a given trading area. Nor-
JJ mally such calculations can be made with a reasonable degree of accuracy
because of buying patterns that are more or less typical for a certain sit-
uation. Experience in malting these studies helps to delineate the trading
area boundaries and to appraise the statistical calculations.
The second type of goods, classified on the basis of buying patterns,
is "shopping goods." These goods are purchased infrequently, have a rela-
tively high unit price, and require a certain degree of planning before
purchase. Normally the customer desires to compare prices, styles, quality,
etc., before purchasing. These facts make buying habits and attitudes for
shopping goods entirely different from those found in the case of conveni-
ence goods. Normally convenience-goods stores tend to locate, other things
being equal, away from other similar stores. This is done because two near-
by stores share the market, and perhaps the market may not justify the
existence of both. Shopping goods stores, on the other hand, tend to be
located near other similar stores because they can capitalize on the fact
that customers like to look through several stores before making a purchase.
Clothing stores tend to be located in clusters in downtown areas or in
shopping centers in the suburbs. Automobile dealerships tend to be in a
certain section, as do furniture and appliance stores.
The extent to which shopping-goods stores have decentralized
depends upon several factors, primary of which is the size of the city and
the relative ease of getting to the downtown area, of parking and returning
home.
s are mainly sold in large cities and are not perti-
herefore are not considered 'Here.
y
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Population of Meridian City, Meridian Census Division and
the Trading Areas.
Area
Meridian Census
Division
Meridian City
(Primary Trading Area)
Trading Area Outside
City (Secondary Trading
Area)
Total Trading Area
(Primary & Secondary)
1940 1950 1960 1968
3,165 5,735 6,703
1,465 1,810 2,081 2,441
2,425
4,866
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Retail Expenditures by Residents of Meridian, Idaho; the Primary
Trading Area, 1968
Type of Retail
Establishment Per
Capita
Sales Popu-
lation Total Retail
Expenditures
Total Retail 1,804 2,450 4,419,800
Lumber, Building & Hardcaare 120 294,000
General Merchandise (Dept.,
Variety & General Stores) 270 661,500
Food 414 1,014,300
Automotive 382 935,900
Gasoline 146 357,700
Apparel 49 120,050
Furniture, Home Furnishings 86 210,700
Eating & Drinking 120 294,000
Drug & Proprietary 68 166,600
Other Retail .149 365,050
Source: Adapted by the U.S. Census of Business and other private
sources.
1~
Retail. Expenditures by ResidenCs of the Secondary Trading Area
(Outside of Meridian but within the Designated Circles), 1968
Type of Retail
Establishment
Total Retail
Lumber, Building & Hardware
General. rlerchandise (Dept.,
Variety & General Stores)
Food
Automotive
Gasoline
Apparel
Furniture, Home Furnishings
Eating & Drinking
Drug & Proprietary
Other Retail
Per Pop.
Capita Trading Total Retail
Sales Area Expenditures
1,804 2,425 4,374,700
120 291,000
270
414
382
146
49
86
120
68
149
654,750
1,003,950
926,350
354,050
118,825
208,550
291,000
164,900
361,325
Source: Adapted by the U.S. Census of Bus i.ness and other private
sources.
13
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1 Retail Espendi.i:ures of the Combined Pri-mary and Secondary Tr ad i.ng
I Areas (As Designated on the Preceding Map), 1968
T
`r~
Per
Type of Retail Capita Pop. Total Retail
Establishment Sales Expenditures
Total Retail 1,804 4,866 8,778,264
Lumber, Building & Hardware 120 583,920
General Merchandise (Dept.,
Variety 8. General Stores) 270 1,313,820
Food 414 2,014,524
Automotive 382 1,858,812
Gasoline 146 710,436
Apparel 49 238,434
Furniture, Home Furnishings 86 418,476
Eating & Drinking 120 583,920
Drug & Proprietary 68 330,888
Other Retail 149 725,234
Source: Adapted by the U.S. Census of Business and other private
sources.
~• _~ i~
Permit dutt.orired \ew I;a~~e and Commercial Construction
Permits, Pk^r idian, Idaizo, April 1960 - :Tune 1968.
Year \umbar of
Residential
(\ew Hoaes) PermrCs
Commercial
1960 7 1
1901 9 1
1962 10 2
1963 16 2
1964 9 3
1965 ~ 15 •- 3
196ti 15 2
1967 13 4
1968 10 3
Total
104
21
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Business Fir~Operating in Meridian, Idaho, 1968.
Type of Firm
Name of. Firm
Approximate Number
of Employees
Retail
Lumber, Building, Hardware
Co-op Oil Association 3
Crawford Uoor Sales 1
Dobaran Implement Company 4
Meridian Lumber Company 4
Evan's Lumber 3
Zamzow's Incorporated 8
General Merchandise (Dept,
Variety & General Stores)
Thorston's Variety Store 2
Food
Automotive
Davis Foods 5
Ianes Corner Grocer 2
Mc Fadde ns Market and Lockers 4
Meridian Meat & Sausage 3
Paul's Clover Farm 5
Aowen's Market 2
Cope Auto 3
Earl's Auto Parts 4
F & N Garage 2
Gibson-k'e7lcer Ford 10
Hills Farm Service 3
Idaho Motor Repair 3
Larry Barnes Chevrolet 4
Meridian Tire & Supply 4
Gasoline
Bodine Oil, 4
Don's Mer id i..an She ].1 Service 2
John 8 Bi.l.l.'s Phillips 66 Service 3
Pitman Oi.1 Company -. 3
Paul's Conoco 4
Towne Texaco 3
Van's Motor Service 2
Apparel
Bazaar 3
lv
Type of Firm
Name of Firm
Approximate Number
of Employees
Furniture, Home Furnishings
Eating & Urinking
Drug & Proprietary
Other Retail
Serv ices
Hotels, Motels
Personal Services
Miscellaneous Business
and Repair
Mangums 4
Ross Furniture 5
Little Detroit 4
Sports Shop 2
Pat.'s Cafe 4
Meridian Drug Center 4
Rice Pharmacy 3
Cal non Floral 4
Creason Photography 3
Horton Si.udios 2
Western Auto 3
Ideal Gas 3
Knotty Pine Motel 2
Bea>_rty Genter 4
Elite Cleaners 2
Hawleys Laundries 2
Modern Cleaners 2
Vern's Barber Shop 2
Robison Chapel of the Chimes 3
O and L Plumbing Service 2
Meridian Ylumbi.ng 3
Smitty's Plumbing 1
Dayl_ey Kadio & '1'V Service 1
Ernco Inc. 12
Thompson Radio & TV Service 1
Koss Radiator 1
Arden's Communication 4
Meridian Sale Yard $
Sanitary Service, Inc. 3
"A
~1 •
~~_~ Type of Firm
Name of Pi.rm
Approximate Number
of Employees
~~-~ Amusement, Recreation
~.~--~ Manufacturi
Meridian Bowling Lanes 3
~~
,~~~
~~
T~ Wholesale
T.~ Business & Professional
~TS
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s
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Ada County Dairymen's Assn 55
Arvad Roberts Contractor 4
Boise Cascade Company 15
Cream Line Dairy 3
G & B Ready Mix 10
Grade "A" Milk Producers 6
Hopper Homes Construction 5
Kaiser Cement 3
Meridian Meat Packers 5
Meridian Pine 25
Mo?tument Works 2
Opel. Harvester
Partridge Or namentalIron Works 2
Si.mp]ot's Soil Bui•Iders 6
Stockman's hli 11 ittg 3
Storey Feed & Seed 4
Viking Automatic Sprinkler Co. 2
k'yeth Inc. 20
Valley Dairy Supply 2
Ambrose & Fitzgerald 4
William Padgett 1
llr. James Nesmith 3
Dr.. Lee C. Pulley 2
Dr. Humbert Valenti 4
Ur, Nathan D, G±est 2
Gerald Anderson 2
Mrs. Olive Stretch 1
Meridian Veterinary Clinic 3
Bennett Realty 2
Ellensohn Agency 2
Farm Bureau Ins. Service 2
Frost. Realty -- 4
Glenn Green 1
Mayes fi Mayes Insurance 3
Meridian Insurance 3
Robison Realty 1
Valley Agency 2
it
Bolen Credit 2
Bonded Loan 2
First Federal Savings & Loan 4
Idaho First: National Rank 10
Meridian Savings & Loan 4
Dry Creek Soil Conserv. Dist. 4
Idaho Power 6
Meridian City Hall 10
Meridian News-Times 5
U. S. Postal Department 14
ly
Type of Firm
Name of Firm
Approximate Number
of Employees
Financial
Offices
neral Miscellaneous
Shopping Centers Classified
TYPES OF SIIOPPItdG CENTERS
Character Neighborhood Community Regional
of Criteria Center Center Center
* ** * **
Average P.umber of
Acres to be Developed 5 - 15 15 - 35 35 - 100
Typical Effective
Radius of the Site -
in Miles 2 3- 4 5- 6
Square Footage 20,000- 100,000- 350,000-
of Floor Area 100,000 350,000 1,000,OGO
Minimum Population 7,000- 20,000- £30,000-
rleeded to Support 20,000 80,000 250,000
leading Tenant Supermarket Jr. One or Two
Department Department
Store Stores
Examples of various types:
* Foothill Village
** Simpson Avenue
*** Cottonwood Mall
~? { ~
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APPENDIX
til
TWO ASPECTS OF STORE LOCATION ANALYSIS
In most store location studies there are two phases that must
be covered. The first of these involves a study of the general area,
while the second is concerned with the specific site.
In the main, the area study is concerned with three broad sets
of conditions: (1) Factors that determine or influence potential pur-
chasing power of the inhabitants, (2) conditions that affect operating
methods and costs, and (3) competition and potential future competition.
Under the first category, factors that determine or influence
potential purchasing power of the inhabitants, are such factors as popu-
lation, income in the community, relative diversification of sources of
income, standard of living of the inhabitants, extent and nature of the
trading area, buying habits and attitudes of residents and the activities
of merchant groups. When considered together, these factors show trends
that can be interpreted in a comparative manner with other cities.
Using the idea that people in a given geographical area behave in about
the same manner if the purchasing power is similar, this comparative
analysis can be extremely valuable in predicting par capita spending
for various merchandise classifications.
Conditions that affect operating methods and costs are gener-
ally thought to be services and other factors within the community
which may be of value to the operating retail store. Banking and credit
facilities, insurance rates, advertising media, retail operating services
(delivery, etc.) local legislation, labor conditions, average rentals
in the community and location of vendors.
Competition can be measured in various ways. Published inform-
ation from the ll. S. Department of Commerce is often valuable. Private
studies or field investigations may shed further light on the question
of how well present stores are doing in comparison with present facili-
ties, and how future stores are likely to fare.
Selecting the site within the community brings to bear a differ-
ent set of factors. The general choice of sites wit hin the community
may vary from high foot traffic locations in the central business dis-
trict to isolated sites, to string streets, shopping centers and many
other individual variations. Where a store should be within the city
normally depends on the size of the city and shopping habits and atti-
tudes. When food stores leave the central business district will
depend to a great extent on automobile traffic congestions, on the size
of the city, and rental figures for land and buildings. Any or all of
these may force the food store which has need of parking facilities to
get away from thehigh density commercial areas.
;C ~~
Basically, the selecting of a site within the community may
bring to bear any one or a combination of the following factors: foot
and automobile traffic, location of competing stores, location of non-
competing stores, population analysis and per capita sales calculations,
experience of other retailers in similar locations, the history of a
given site and physical factors (such as the right side of the street,
the position in the shopping district and on the block, transportation
facilities, parking facilities, the nature of the building and surround-
ings, visibility of the building and finally the accessibility of the
location). Judgment is, of course, required to determine the relative
importance of these factors for a given situation. Sometimes some will
be favorable and others negative. It is then necessary to try to weigh
all of them together and come up wit~i an overall evaluation of relative
desirability for a given site (or a comparison of relative worth of one
site as opposed to other alternative spots).
~~
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Population T~Js for Idaho Counties for 1940, 1950 and 1960 With Per~age Increases Shown
6 er ent ncrease
1950 Over 1 1 6 ver 5
ota fate 5 7 7 71 .l 3.
Source: U. 5. Census of Population
;C t;
Park (pt)