Retail Trade Area Analysis Larimore, North Dakota

Abstract

This report is intended to provide an in depth trade area analysis of Larimore, North Dakota. Specific analyses included determining Larimore's main and greater trade areas, identifying the demographic profile of Larimore shoppers, examining important and less important services for patron shoppers of Larimore, identifying neighboring cities that area shoppers patronize, determining distances area shoppers traveled to Larimore, and listing popular newspapers and radio stations among area residents. Current trade area information for Larimore was obtained from a statewide trade area survey conducted by the Department of Agricultural Economics at North Dakota State University in 1989. Recent trends (1980 to 1989) in Larimore population, retail sales, per capita income, pull factors, and Grand Forks County population and employment were identified and discussed. Larimore's population, retail sales, and pull factor have all decreased throughout the 1980s, even though Grand Forks County population and average annual employment have increased during the same time period. Although Larimore's demographic and economic measurements have decreased, Larimore has fared as well as other North Dakota cities with similar population, and has fared favorably compared to smaller competing trade centers. The economic situation found in Larimore in the 1980s is somewhat typical of the problems found in rural North Dakota communities located close to large retail trade centers. Larimore's trade areas were broken down into main and greater trade areas. A main trade area (MTA) was defined as an area where 35 percent or more of the township residents purchase a majority of selected goods and services in one city. A greater trade area (GTA) was defined as the area beyond the MTA where some township residents purchase some selected goods and services in one city. Larimore's MTA decreased in size by one township, compared to MTA boundaries determined in 1973. The typical household for survey respondents appears to be a middle-aged married couple, who have completed high school, have few children at home, are primarily employed in agriculture, professional/technical, sales/service professions, or retired, and have resided in the area a large portion of their lives. Main trade area residents traveled an average of 7.7 and 7.4 miles to Larimore to purchase selected convenience and specialty goods and services, respectively. Over three-fifths (63.8 percent) of the respondents who purchased 50 percent or more of convenience and specialty goods in Larimore traveled between 6 to 15 miles to purchase the item. Larimore appears to be an important source of many goods and services for those who shop in Larimore; however, Larimore could capture much more of the available market for two-thirds of the nonagricultural and all of the agricultural goods and services listed on the survey questionnaire. Larimore's problems with market capture are mostly caused by its close proximity to Grand Forks, and Larimore may find it difficult to compete with Grand Forks for the delivery of most specialty and high ticket items. Grand Forks, Northwood, Niagara, and McCanna were the most popular cities for the purchase of nonagricultural goods and services by Larimore MTA residents who did not purchase a majority of the good or service in Larimore. Northwood, Gilby, Fordville, Honeyford, McCanna, and Grand Forks were popular for purchasing agricultural goods and services. Outshopping analysis revealed no substantial demographic or socioeconomic differences between Larimore MTA residents purchasing SO percent or more and those purchasing less than SO percent of selected goods and services in Larimore. Subtle differences were noted between the groups purchasing farm fuel and lubricants. Slight differences between groups for all four items were evident only in miles traveled. The Grand Forks Herald was the most popular daily newspaper for both Larimore MTA and GTA residents. The Larimore Leader was the most popular weekly newspaper for both Larimore MTA and GTA residents. The most popular radio stations for Larimore MTA residents included KNOX of Grand Forks, KKXL of Grand Forks, KYCK of Crookston, and KFGO of Fargo. Although economic times have been difficult, Larimore appears to be doing a good job of retaining most of its past trade area. Much of Larimore's problems with market capture, reduced taxable sales, and lower pull factors can be attributed to the increased economic influence of Grand Forks. Although Grand Forks has increased its retail influence during the 1980s, Larimore should remain an important trade center for residents in western Grand Forks County and the surrounding area.