“Gap” Analysis
In preparing the Development Ready Reports of targeted buildings, the article we are using as a model to prepare these reports suggest that we include a Downtown “Gap” Analysis, identifying the “gaps” in goods and services within the downtown.
An analysis was prepared In January 2004, as part of Weldon’s Small Town Main Street Program,
A Business and Development Plan was prepared for Downtown Weldon by the NC Small Town Development Program, Office of Urban Development, NC Dept. of Commerce.
In this report the Market Conditions/Business Climate were Observed as follows and with Recommendations.
A conclusion of this analysis could be that we are on the right track in seeking to develop Downtown Weldon as a Tourist Destination. As the table on the next page shows, there is good Potential for
- General merchandise (Department variety stores)
- Misc (gifts jewelry antiques, thrift, books Etc)
- Eating/Drinking
As the report also indicated potential for gasoline sales and drug store merchandise, perhaps our efforts should be concentrated on the types of business that will add to the tourist experience.
This information will be included in the Development Ready Reports
Market Conditions/ Business Climate
Observation
Our assessment of the market conditions in Weldon, based on the available information from several authoritative sources, indicate that the downtown business district captures less than 1.3% or approximately 6 million in the total county retail sales of 510 million. This amount is less than 3% of the potential sales of 275 million within 5 miles of downtown and is heavily concentrated in groceries, auto supplies and gasoline.
After adjusting for local competition on the edge of downtown, it is estimated that there is a remaining 24 million in potential sales to be captured in
- drug store merchandise,
- general merchandise (Department variety stores)
- miscellaneous merchandise (gifts jewelry antiques books Etc),
- gasoline sales and
- eating and drinking.
The town loses significant business to Roanoke Rapids and the concentration of businesses along the Roanoke Rapids side of Interstate 95, with a major portion of this business in Home Improvements, general merchandise, eating and drinking, clothing and groceries. The reasons cited shopping outside the area for these items are stated due to the lack of variety/ selection or products not offered in Weldon.
Recommendations
The downtown businesses should attempt to capture a portion of the potential sales of 24 million dollars within the 5 mile radius of downtown that is primarily “leakage” now going to Roanoke Rapids, with a goal of increasing downtown sales by 2 to3 million over the next few years. This can be best accomplished by increasing the availability and or marketing of general department store merchandise, drugstore products, eating establishments and miscellaneous merchandise; by adding stores offering these products and/or expanding the offerings of existing businesses downtown
Downtown businesses should understand their markets and focus their promotional efforts on the markets they are most likely to attract. Most downtown markets function in an “inside-out” fashion. These identified markets, in order of marketing importance are:
- 360 downtown employees
- 1700 nearby residents
- visitors to downtown magnets
- the library
- Town Hall
- 1000 employees of local businesses and industries within 1 mile of downtown
- 22,000 residence within 5 Mi of Weldon
- 57000 Halifax County residence
- other outside visitors Etc.; including
- the large number of Travelers passing on the edge of downtown on the Interstate 95 on their way North and South,
- others use US 301 and Highway 158 through the center of downtown Weldon as access routes to Roanoke Rapids Halifax and other nearby communities
RECOMMENDED POTENTIAL
| Type | Potential | % Capture | Est Sales/$200 sf | Size/SF |
| *Gen Merch (Department variety stores) | $700,000 | 30% | $210,000 | 1050 |
| Misc(gifts jewelry antiques books thrift Etc) | $7,921,000 | 30% | $2,376,300 | 11,882 |
| *Eating/Drinking | $225,000 | 50% | $112,500 | 563 |
| Gasoline | $10,000,000 | 10% | $1,000,000 | 5000 |
| Drug | $5,885,000 | 20% | $1,177,000 | 5885 |
| TOTALS | $24,731,000 | $4,553,300 | 22,767 | |
| *= 1 mile radius |