Development Inventory
SUPPLY AND DEMAND RATIOS
The adequacy of a community’s retail inventory can be evaluated by comparing annual household spending patterns on goods and ser-vices to the annual sales of the retail establishments within the city that provide these same goods and services. In theory, if the current supply of retail establishments is sufficient, then the retail sales gen-eration should at least equal or surpass the expenditures of the resi-dents.
This type of analysis employs a recent estimate of the number of households located in the city as well as an estimate of what these households spend annually on the various goods and services identi-fied in Table 4.4. The product of these two figures (see Column 5 in Table 4.4) reveals an estimate of the annual expenditures for all of the households in the community on retail goods and services. This fig-ure is then compared to the total sales generated by commercial estab-lishments located in the community as determined by multiplying the square footage from the inventory (Column 2 in Table 4.4) by na-tional sales per square foot standards (see Column 6). The final step compares these two products and the result (see Column 8) identifies either sales “capture” or “leakage”. Sales capture occurs when the re-tail sales exceed the residents’ expenditures — the commercial sector
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Cuyahoga County Planning Commission Page 4.8 City of Garfield Heights Master Plan
has not only met the needs of its residents, but is drawing customers from beyond its borders. Sales leakage occurs when the residents’
shopping needs are not met within the community and they must go elsewhere to purchase goods or services.
Table 4.4 illustrates implementation of this methodology for Gar-field Heights.
The sales capture and leakage identified in Table 4.4 is translated into actual floor space in Table 4.5. The capture or leakage from column 8 of Table 4.4 is divided by sales per square foot of each retail type to arrive upon a floor space total. This represents the amount of com-mercial floor space that is in abundance or in need in Garfield Heights.
Table 4.4 indicates that, cumulatively, there is a leakage of sales dol-lars for retail goods and services in Garfield Heights. However, it is best to analyze this data on an individual category basis. Two out of the five retail categories — convenience and shoppingare experi-encing sales capture. Convenience goods and services appear to be in the greatest abundance in terms of attracting outside sales ($18.1 mil-lion sales capture). Conversely, sales leakage is occurring in the auto,
September, 1999 Chapter 4, Commercial Development Inventory
Cuyahoga County Planning Commission
City of Garfield Heights Master Plan Page 4.9
8
Square FootSales perNationalMedian Potential
Table 4.4, Garfield Heights Retail Sales Capture and Leakage
*Total Floor space does not include industrial, vacant or local office space
SOURCE (by column):
2 = 1997 Garfield Heights Commercial Inventory 3 = Urban Decision Systems, 1996 estimate
4 = U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 1996 (adjusted to 1997 using Consumer Price Index
5 = Column 3 x Column 4
6 = Dollars and Cents of U.S. Shopping Centers, ULI-Washington, 1997 7 = Column 2 x Column 6
amusements, and other retail categories ($49.8 million and $6.2 mil-lion, and $98,000 respectively).
It is not unusual for communities to experience sales leakage in the auto and amusements categories. For example, amusements such as movie theaters do not locate in every community and many residents are willing to travel a reasonable distance to see a movie. Recent plans in the nearby communities of Valley View and Independence have included the construction of multi-plex cinemas. While only one of these type of facilities will probably be constructed due to their large scale, their presence will provide an outlet for Garfield Heights’
residents seeking additional amusement opportunities.
Additionally, automotive franchises are restricted by state law from locating within ten miles of one another, thereby restricting how many there can be in a metropolitan area. Garfield Heights residents do not have to travel a significant distance to shop for cars, as the nu-merous automotive dealers located along the “Bedford Auto Mile” is only a five to ten minute drive away.
CONCLUSION This analysis of the retail supply and demand in Garfield Heights in-dicates that the current supply of retail establishments is serving most, but not all of the needs of the City’s current residents. Addi-tions to the current retail inventory are not necessarily discouraged as long as they are carefully developed to compete with surrounding commercial developments. Opportunities exist to draw Cleveland residents from the north where retail options may be inadequate or of poor quality. This issue is addressed later in this Plan in regards to the new housing being developed in Mill Creek Village.
In addition, the physical improvements to the commercial districts outlined in the previous Commercial Inventory are recommended as a means of improving the ability of Garfield Heights’ retail busi-nesses to remain competitive with the region for the future. The up-grading of zoning standards for commercial districts combined with
Chapter 4, Commercial Development Inventory September, 1999
Cuyahoga County Planning Commission
City of Garfield Heights Master Plan Page 4.10
Square Feet Surplus/(Deficit) in Building Square Foot
National Median Sales per (Leakage)
Table 4.5, Existing Commercial Floor Space Surpluses/Deficits
the judicious expansion of land zoned for future office and retail de-velopment will also help to ensure the viability of retail uses within the City.
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Cuyahoga County Planning Commission
City of Garfield Heights Master Plan Page 4.11