Retail Market Study Conclusion
Lindsay Bloos, Thomas P. Miller & Associates
This retail market analysis has shown a need for grocery, gas stations with convenience stores, clothing, pharmacies, electronics, and home centers in the Greater Morenci Area. Information provided by city staff has confirmed this need, with emphasis on grocery and home centers. Those business types were once active in the city but have since closed. Morenci faces several challenges in attracting these types of retailers.
Morenci may struggle with last mile distribution, as it is not directly adjacent to major interstates and is approximately 20 minutes from the Ohio Turnpike. The grocery industry, in particular, is experiencing supply chain disruptions, increased distribution costs, and labor shortages reducing production capacity. The previous grocery store lot would require some work to meet the needs of another grocery tenant. The property is not owned by the city, and any alternative locations would also require assessment and several steps to rise to the requirements set forth by rural grocery retailers.
However, additional retail assets in the city would offer convenience to approximately 8,300 residents within a 20-minute drive. The most recent data available estimated the leakage for groceries alone at ($4,750,502), indicating opportunity for grocery success if requirements can be met. Recent efforts by the Downtown Development Authority (such as the establishment of the new Morenci Social District) and the Spark Grant to the city from the Michigan Department of Natural Resources for reactivation of Stephenson Park are just a couple of recent developments enhancing the city’s appeal (and likely traffic). The city has seen a 4% uptick in population following years of decline. Walkability in the city is very good, with a solid network of sidewalks connecting businesses to residential areas and local schools.
The city will need to provide some means for implementing these best practices. Morenci should consider a variety of incentives and build a toolbox of resources for businesses. The addition of the Community and Economic Development Director position has been an investment devoted to such action, and with both qualitative and quantitative results. Because successful retail attraction is long-term and depends on significant coordination and knowledge, the city of Morenci is encouraged to continue to dedicate financial and staff capacity toward these efforts.
Measuring community support for these retail opportunities could be a significant key to success, especially in conjunction with providing incentives, highlighting demand, and showcasing community assets. Community leaders and residents can help by 1) understanding that the process of retail attraction could take months to years, and 2) providing continued support for local economic development efforts. The potential for Morenci’s future success in retail attraction will increase with persistence and dedication to making incremental improvements.
A hard copy of the Retail Market Study is available at City Hall. It can also be viewed here. The project was funded in partnership with Lenawee Now through funding received from a Federal Economic Development Administration Grant.