Market Analysis for Goodwives Shopping Center, FNCE 5534
Goodwives is at 25 Old Kings Hwy, Darien, CT
Example of student project that was graded A+ in 2013. Students following this example should consider professor Clapp’s comments. There are many good aspects of this paper, but every year the projects get better.
Version March 1, 2014
Step 4: Supply analysis: competition for the SS
Steps 4 Overall objectives:
In this section of the market analysis, we will use the fourth step to assess the supply portion of the surrounding areas from the Goodwives Shopping Center. As part of this analysis, we used CoStar to search for retail sites within the 5 mile radius of Goodwives, followed by evaluation of competitors to some of the stores within our shopping center based on the categories of: supermarkets, restaurants and fitness. Consider competition for possible new tenants as well as existing tenants. Appraisal of the competitors was done by using CoStar and the internet within the 5 mile radius.
Overview of competition and its effects on Goodwives Shopping Center
· Goodwives competition can mostly be found on close to major roadways: Route 1/Boston Post Road, Rout 7 or I-95 highway.
· Whether it is shopping centers, retail stores, supermarkets, fitness centers/gyms or restaurants, there is a high level of competition within this area.
· According to CoStar, there is 969,432 available SF, and 3% vacancy within the 5-mile radius of Goodwives shopping center
Overview of shopping centers around Goodwives: See Tabs: Shoppin Center 5 Mile and 10 Mile
· There is a large number of shopping centers within the vicinity of Goodwives.
· Not all of these shopping centers have a large anchor like Stop & Shop, but they do have similar offerings.
· Most of these competitors form a straight line between Boston Post Road and I-95.
The 3 closest shopping centers are:
Tokeneke Center: 17,996 SF
Located off of Rt.1 and Tokeneke road
Key tenants:
-Darien Produce
-Ernie’s Restaurant
-Town Ridge Cleaners
Norton Heights (45, 482 SF)
Located off of West Ave
Key tenants:
-Stop and Shop Is this the same S&S listed towards the bottom of this page?
-Walgreens
Shopping Center (20,000 SF)
Off Rt.1, close to exit 13 I-95
Key tenants:
-Allstate
-Lily Nails & Spa
Overview of supermarkets around Goodwives: Nice use of CoStar search
Our Costar analysis showed that there are shopping centers within 5 miles radius have tenants that are in competition to our shopping center.
Using analytical search of: discount grocer, gourmet market, health food, specialty food, supermarket, and wholesale club, we found a list of competitors to Stop & Shop. Below is the Map and list of closest competitors:
· Trader Joes (400-454 Post Rd, Darien, CT 06820)
· Wholefoods (150 Ledge Rd, Darien CT 06820)
· Stop and Shop (138 Heights Rd, Darien, CT 06820)
· Costco (779 Connecticut Ave Norwalk, CT 06854)
· Palmers Supermarket (264 Heights Rd Darien, CT 06820)
There is a total of 21 competitors within 5-mile radius.
Using Google maps search for “grocery stores near Goodwives Shopping Center”, we were able to confirm the CoStar search results. In addition to what was found with CoStar, Google Maps added 2 grocery stores: Excellent. You checked CoStar with Google maps.
· Darien Farmers Market 76 Connecticut Ave Darien, CT 06820
· Darien Produce LLC 27 Tokeneke Road Darien, CT 06820
This section is excellent because it has a thorough review of competitors for each major tenant at Goodwives.
Overview of restaurants around Goodwives:
The next set of search we did was for competitors to the two restaurants in Goodwives: Tengda and Coromandel. A little more depth on Coromandel would be helpful. It is a mid priced Indian restaurant, part of a chain of 7. It isn’t in a category with upper end NYC restaurants, but it is a good bit pricier than several of the restaurants listed in this section. This is relevant since you have very high income demand. Below is the CoStar map based on a search for: restaurant, cafeteria, fast-food, pizza and sub sandwich. As a note, though some of these may not be perfect trade-offs for restaurants, they are still establishments that offer food for customers to eat within the store or at home:
· The Melting Pot (980 Boston Post Rd, Darien, CT 06820)
· Cosi (14 Grove St, Darien CT 06820)
· Friendly’s (275 Boston Post Rd, Darien, CT 06820)
· Subway (879-885 Boston Post Rd, CT 06854)
· Chipotle (71 Post Rd, CT 06820)
Using Google maps search for “restaurants near Goodwives Shopping Center”, we were able to confirm the CoStar search results. In addition to what was found with CoStar, Google Maps found a few other restaurants that were closer to the SS:
· Post Corner Pizza 846 Post Rd, Darien, CT 06820
· The Goose American Bistro & Bar 972 Post Rd Darien, CT 06820
· Back Street Restaurant 22 Center St Darien, CT 06820
Overview of fitness centers/gyms around Goodwives:
Our final search was to evaluate the fitness centers close to Goodwives. This search was chosen because our SS has a variety of places where consumers can do exercise.
· The Little Gym (14 Corbin Dr, CT 06820)
· Crunch (770 Connecticut Dr, Darien CT 06820)
· Planet Fitness (316 Courtland Ave, Stamford, CT 069906)
Using Google maps search for “fitness and gyms near Goodwives Shopping Center”, we were able to confirm the CoStar search results. In addition to what was found with CoStar, Google Maps found a two other gyms that were close to the SS, which were not listed in Costar:
· Equinox 72 Heights Rd Darien, CT 06820
· Infinity Fitness 274 Heights Rd Darien, CT 06820
Retail sites under construction: See the UC tabs in Excel.
Using CoStar retail search for under construction, under renovation and proposed within the 5 and 10 mile radiuses showed the following: with the below criterion and 5 and 10 mile radiuses from our SS returned the following results:
Under construction
5 miles: 3 properties
10 miles: 5 properties
Under renovation
5 miles: No properties
10 miles: 2 properties
Proposed
5 miles: 10 properties
10 miles: 13 properties
Performing a Google search for “retail site under construction near 25 Old Kings Hwy N Darien, CT 06820” returned no results besides a Toyota dealership in Milford.
Step 4 Conclusion:
Stop & Shop will have some stiff competition from some of the markets in the vicinity. Trader Joes and WholeFoods offer a selection of more natural and higher quality goods. WholeFoods also attracts a certain type of clientele based on their premium pricing. Costco offers great prices and larger quantities which perfect for shoppers with families, but the drawback is that a membership is needed to shop there, and a consumer needs to drive to Norwalk.
Tengda and Coromandel also have competition from a variety of restaurants within the area. Depending on the taste of the consumers, they could be visiting other dining establishments. A plus for Goodwives and the restaurants is having a large-free parking area.
The fitness searches did not raise much concern to Goodwives fitness tenants due to the vicinity of these competitors and the fact that you need a membership to join any of these places so consumers don’t have as much freedom to shop around.
Due to the total number of retail properties within the 5-10 mile radiuses that are under construction, under renovation or proposed, there should be some concern for Goodwives in terms of competitors entering the market. Though there are no supermarkets listed as stores, there are very few details of what is being built, so competitors to Stop & Shop could be in plans.
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