Information About Share Market

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					                                                                                                                        Fall, 1999


  I S U E XTENSION R ETAIL TRADE A N A LYSIS P ROGRAM



                        I OWA R ETAIL M A R K E T S H A R E
                           OF V A R I O U S S I Z E T O W N S
For more information
contact:

 Dr. Kenneth E. Stone
         or
  Georgeanne Artz
460 Heady Hall, ISU
Ames, IA 50011
Ph. (515) 294-7318
Fax (515) 294-1700

Email:
 kstone@iastate.edu
       or
 gartz@iastate.edu

                                                                  Prepared by:
                                                              Dr. Kenneth E. Stone
                                                                       &
                                                              Georgeanne M. Artz




                        The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities
                        on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual ori-
                        entation, and marital or family status. (Not all prohibited bases apply to all programs.) Many materials
                        can be made available in alternative formats for ADA clients. To file a complaint of discrimination,
                        write USDA, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue,
                        SW, Washington, DC 20250-9410 or call 202-720-5964.

                        Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation
                        with the U.S. Department of Agriculture. Stanley R. Johnson, director, Cooperative Extension Service,
                        Iowa State University of Science and Technology, Ames, Iowa.
ISU Extension Retail Trade Analysis Program                                                                Page 2


        This publication provides a graphical presentation of market share information for various size
 Iowa towns using data from the Iowa Department of Revenue and Finance.

         The pie chart below depicts the market share of total retail sales for various size Iowa towns. In
                         s
 fiscal year 1998, Iowa’ largest towns (population over 50,000) accounted for more than 45% of the
       s
 state’ retail sales. This share has increased over time, up from approximately 36% in fiscal year 1976.
                                                         s
 On the other hand, the retail market share of the state’ smallest towns (population under 1,000) com-
                                 s
 prised about 6.5% of the state’ overall retail sales in FY98. For these small towns, retail market share
 has been declining, falling from around 13% of state sales in FY76.

         Several factors may be contributing to these trends, including population shifts from the rural
 areas into the larger towns and cities and changes in the commuting patterns of rural workers. How-
 ever, the rapid growth of mass merchandise stores in the larger towns and cities has been one of the
 most important factors in the outmigration of retail trade from smaller towns. The huge selections of-
 fered by discount department stores and large specialty stores attract customers from long distances.

         For more information, please contact the ISU Retail Trade Analysis Program at Iowa State Uni-
 versity, or visit the program online at www.econ.iastate.edu/retail.

              SHARE OF TOTAL RETAIL SALES B Y TOWN
                       POPULATION GROUPS

                                          Percentage of Total Retail Sales by
                                           Town Population Groups, 1998
                                                   Under 1,000:
                                                     6.10%
                                        1,000 to 2,500:
                                            6.17%

                                 2,500 to 5,000:
                                     7.20%
                                                                           Over 50,000:
                                                                             45.53%
                              5,000 to 10,000:
                                  12.52%


                                10,000 to 25,000:
                                     8.44%                                      Towns Under 1,000:

                                              25,000 to 50,000:                 500 to 1,000: 2.62%
                                                  14.04%                        Under 500: 1.70%
                                                                                Rural & Other: 1.78%



 *Due to rounding, percentages may not add to 100%.
ISU Extension Retail Trade Analysis Program                                                                                      Page 3




                                  Share of Total Businesses and Total Sales
                                        by Amount of Gross Revenue
                                                          Iowa, 1998
        Gross Revenue
                                                                                                               67.2%
           Under $25,000
                                   2.4%

                                            9.2%
       $25,000 to $49,999
                                  2.0%

       $50,000 to $99,999
                                           7.9%              About 8% of Iowa businesses account for roughly
                                    3.4%                                      s
                                                             85% of the state’ total retail sales.
                                           7.6%
     $100,000 to $249,999
                                           7.3%

                                    3.6%
     $250,000 to $499,999
                                           7.7%
                                                                                                   % of Total Businesses
                                  2.0%                                                             % of Total Sales
     $500,000 to $999,999
                                            8.4%

                                   2.6%
       $1,000,000 & Over
                                                                                                                 69.3%

                             0%            10%      20%      30%       40%             50%          60%        70%         80%
                                                                Share of Total




       CHANGES                       IN           MARKET SHARE OVER TIME
                              R e tail Market Share For Various Size Towns,
                                                     Iowa 1976 and 1998
    Population Group
         Over 50,000

    25,000 to 50,000

    10,000 to 25,000

      5,000 to 10,000

       2,500 to 5,000

       1,000 to 2,500

         500 to 1,000
                                                                                                                 1976
       Less Than 500
                                                                                                                 1998
      Rural & Others

                        0%         5%         10%   15%     20%      25%         30%         35%       40%      45%        50%
                                                             Share of Market
ISU Extension Retail Trade Analysis Program                                                                                                               Page 4


                                             s
                        Market Share of Iowa’ Large Cities, FY76 to FY98
  48%


  46%                                                                                                                            As a whole, the retail market
                                                                                                                                              s
                                                                                                                               share of Iowa’ large cities
  44%                                                                                                                          (populations over 50,000) has
                                                                                                                               increased over time, from about
  42%                                                                                                                          36% in fiscal year 1976 to 45%
                                                                                                                               in FY98. This represents an
  40%
                                                                                                                               average annual growth rate in
                                                                                                                               market share of 1.03%.
  38%


  36%


  34%
        76   77   78    79   80   81   82   83   84   85   86   87   88   89   90   91   92   93     94   95    96   97   98




                                            s
                       Market Share of Iowa’ Mid Size Towns, FY76 to FY98
  15%
                                                                                                                                 The retail market share of
  14%                                                                                                                                s
                                                                                                                               Iowa’ mid-size towns
  13%
                                                                                                                               (populations 5,000 to 25,000)
                                                                                                                               has, in general, grown slightly
  12%                                                                                                                          from FY76 to the present. The
                                                                                                                               average annual rate of growth in
  11%
                                                                                                                               market share for towns with
  10%                                                                                                                          25,000 to 50,000 population is
                                                                                                                               0.3%; for towns of 10,000 to
   9%
                                                                                                                               25,000 population, 0.95% and
   8%                                                                                                                          for towns of 5,000 to 10,000
                                                                                                   25,000 to 50,000
                                                                                                                               population, 0.09%.
   7%                                                                                              10,000 to 25,000
                                                                                                   5,000 to 10,000
   6%
        76   77   78    79   80   81   82   83   84   85   86   87   88   89   90   91   92   93    94    95    96   97   98




                                             s
                        Market Share of Iowa’ Small Towns, FY76 to FY98
                                                                                                                                All groups with towns of popu-
  10%
                                                                                                                               lation under 5,000 lost retail
   9%                                                                                                                          market share over the period
   8%
                                                                                                                               from FY76 to FY98. Towns
                                                                                                                               with 2,500 to 5,000 people had
   7%                                                                                                                          an average annual rate of
   6%                                                                                                                          decline in market share of
                                                                                                          2,500 to 5,000       0.84%; the share of towns with
   5%                                                                                                     1,000 to 2,500
                                                                                                          500 to 1,000         1,000 to 2,500 population fell at
   4%                                                                                                     Less Than 500        an average rate of 1.85%. The
                                                                                                          Rural & Others
   3%                                                                                                                          three smallest population
                                                                                                                               groups— 500 to 1,000, less than
   2%
                                                                                                                               500, and rural and others— had
   1%                                                                                                                          average annual rates of decline
   0%
                                                                                                                               in market share of 3.19%,
        76   77   78 79      80   81   82   83   84   85   86   87   88   89   90   91   92   93     94    95   96   97   98   2.63% and 3,81%,
                                                                                                                               respectively.

				
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