A recent independent assessment conducted by Cushing Terell Architecture Inc. detailing Chestermere’s retail gap suggests the community’s retail industry only holds a 40 per cent share of its residents overall spending. Sixty per cent appears to flow to surrounding areas.
Jean-Marc Lacasse, manager of economic development with the City of Chestermere, said the analysis also indicated Chestermere’s total retail trade area, based on population and household income, was valued at $581 million.
“We did not have the ability to quantify that,” he said. “We could do some guesses, do some simple math…but it’s really nice to have that independent assessment.”
A breakdown of retail inventory available in the community compared to demand, showed residents had no options in Chestermere for retail markets such as home electronics and appliances. The report suggested a demand from residents estimated at $17.4 million, home furnishing ($24.4 million) home improvement and gardening ($5.9 million) and sporting goods and outdoor recreation ($4.2 million).
Though retail industries such as clothing and apparel exist in the community, the report estimated current annual sales at $250,000 while the estimated demand from residents was valued at $17.6 million.
Based on inflow versus outflow, the report estimated $138 million (including auto sales and parts) was spent by Chestermere residents outside of the community, which Lacasse said was an “untapped” market that could be positioned to attract business.
“(We are) able to show (businesses) the retail market, the population growth (and say)…you will do well in Chestermere,” Lacasse said. “Since we’ve been doing that and putting Chestermere on the radar screen, (businesses) have been…expressing a lot of interest.”
With the population growing about 6.6 per cent in 2016 to a population of 19,715, he said the demand and value of those retail markets would continue to grow annually.
Surveying residents from Chestermere as a component of the report, businesses such as Home Hardware, Canadian Tire and Home Depot were among the most requested. The Keg, a Greek or Italian restaurant and Earls were the most requested full-service restaurants.
As more services become available in the community, Lacasse said it could position Chestermere as a viable option for residents of surroundings communities to stop in and shop without having to drive to Calgary.
“Chestermere is at the critical point, that tipping point, where we’re about to have all those services,” he said. “The natural evolution and progression (is to) basically intercept people before they travel too far.”
Within the Gateway Area Structure Plan, Lacasse said there is close to 55,742 square metres of commercial space that will become available for businesses over time.
With the community’s rising population, household income and housing resell value, he said this retail gap analysis would need to be reassessed in about two years time to see how much it has developed.
“(Those factors) indicate a strong retail market,” he said. “We have a vested interest to be able to tell the retailers in two years time that it’s still a good place to do business.”
