Retail Trade Area Analysis New Town North Dakota

Abstract

This report is intended to provide an indepth trade area analysis of New Town, North Dakota. Specific analyses included determining New Town's main and greater trade areas, identifying the demographic profile of New Town shoppers, examining important and less important services for patron shoppers of New Town, identifying neighboring cities that area shoppers patronize, determining distances area shoppers traveled to New Town, and listing popular newspapers and radio stations among area residents. Current trade area information for New Town 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 New Town population, retail sales, per capita income, pull factors, and Mountrail County population and employment were identified and discussed. New Town's population, retail sales, and pull factor, along with Mountrail County population, average annual employment, and per capita income have all decreased throughout the 1980s. Although most demographic and economic measurements have decreased, New Town 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 New Town and Mountrail County are somewhat typical of the problems found in western North Dakota communities in the 1980s. New Town'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. New Town's MTA increased in size by one township, compared to MTA boundaries determined in 1970. 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 and professional/technical professions, and have resided in the area a large portion of their lives. Main trade area residents traveled an average of 14.0 and 12.8 miles to New Town to purchase selected convenience and specialty goods and services, respectively. Over half (50.6 percent) of the respondents who purchased 50 percent or more of convenience and specialty goods in New Town traveled between 11 to 20 miles to purchase the item. New Town appears to be capturing little of the potential market for two-thirds of the goods and services on the survey questionnaire. New Town's poor market capture can be partially explained by its relative size and close proximity to several larger competing trade centers (Williston, Watford City, and Minot). New Town does appear to be a relatively important source for many of the survey goods and services for respondents shopping for those items in New Town. Minot, Stanley, Watford City, Parshall, and Williston were the most popular cities for the purchase of nonagricultural goods and services by New Town MTA residents who did not purchase a majority of the good or service in New Town. Stanley and Watford City were popular for purchasing agricultural goods and services. Outshopping analysis revealed no substantial demographic or socioeconomic differences between New Town MTA residents purchasing 50 percent or more and those purchasing less than 50 percent of selected goods and services in New Town. Slight differences between groups were evident only in miles traveled and average income. The Minot Daily News was the most popular daily newspaper for both New Town MTA and GTA residents. New Town News and Mountrail County Record were the most popular weekly newspapers for New Town MTA and GTA residents, respectively. The most popular radio stations for New Town MTA residents included KCJB of Minot and KFYR of Bismarck. Although economic times have been difficult, New Town appears to have increased its past trade area and should remain an important trade center for residents in Mountrail County and the surrounding area.