In this article, you'll find information to help interpret your Retail Market Power report in ENVISION, including definitions for report headers and examples of what they mean.
The Retail Market Power report presents a gap analysis to help understand supply and demand in a Trade Area. The report is divided into multiple pages: gap and growth pages by merchandise line and retail store type. It can be used in conjunction with a Ranking Areas—Variable report to examine the RMP variables in more detail. You might also want to examine household and population variables for the Trade Area.
A retail opportunity gap appears when expenditure levels for a specific geography are higher than the corresponding retail sales estimates; the demand is greater than the supply (e.g., a positive number). A retail surplus appears when expenditures are lower than the retail sales estimates. In this case, local retailers attract expenditures from other areas into their stores, and the demand is less than supply (e.g., a negative number). RMP estimates demand in an area for all expenditures from businesses and households.
2023 Demand ($): Total dollars spent on the line item in 2023 by all consumers and businesses in the Trade Area, regardless of where the dollars were spent.
2028 Demand ($): Projected total dollars spent on the line item in 2028 by all consumers and businesses in the Trade Area, regardless of where the dollars were spent.
Growth ($): (2028 Demand - 2023 Demand) The five-year change in dollars spent on a line item, either a positive or negative value.
Compound Annual Growth Rate (%): The rate at which demand is projected to grow if compounded over the next five years. Alternatively, it represents growth if the growth rate were steady every year for five years.
For example, the demand (expenditure) for new car dealers in 2023 in Fresno County, CA, is $2,580,049,185. Demand is projected to increase to $2,928,678,966 by 2028, which equals a growth of $348,629,781 over the five years. This is also represented by a 2.57% Compound Annual Growth Rate.
2023 Demand ($): Total dollars spent on the line item in 2023 by all consumers and businesses in the Trade Area, regardless of where the dollars were spent.
2023 Supply ($): The total aggregate sales for the line item in the Trade Area.
Opportunity Gap/Surplus ($): (Demand—Supply) The difference between the dollar spent and sales. Indicates a gap or surplus in that line item within the Trade Area.
For example, there could be a retail opportunity gap for Packaged liquor, wine, and beer in Fresno County, CA. The demand (expenditure) exceeds the supply (sales), the difference being a positive value.