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ANALYSIS OF RETAIL TRENDS AND TAXABLE SALES FOR
   EUFAULA, OKLAHOMA AND MCINTOSH COUNTY




            Suzette Barta, Extension Assistant, OSU, Stillwater
                              (405) 744-6186

          Susan Trzebiatowski, Student Assistant, OSU, Stillwater
                             (405) 744-6186

        Randell Burris, Ext. Ed. Agric./4-H and CED, OSU, Eufaula
                              (918) 689-7772

       Jack Frye, Area Community Development Specialist, OSU, Ada
                            (580) 332-4100

          Mike D. Woods, Extension Economist, OSU, Stillwater
                           (405) 744-9837




         OKLAHOMA COOPERATIVE EXTENSION SERVICE
               OKLAHOMA STATE UNIVERSITY




                              February 2004
                      Analysis Of Retail Trends And Taxable Sales For
                        Eufaula, Oklahoma And McIntosh County


Suzette Barta                  Susan Trzebiatowski              Mike Woods
Extension Assistant            Student Assistant                Extension Economist
Room 527, Ag. Hall             Room 527, Ag. Hall               Room 514, Ag. Hall
Oklahoma State University      Oklahoma State University        Oklahoma State University
Stillwater, OK 74078-6026      Stillwater, OK 74078-6026        Stillwater, OK 74078-6026
sdb1113@okstate.edu            susanft@okstate.edu              mdwoods@okstate.edu



Randell Burris                                                  Jack Frye
Ext. Ed., Agric./4-H & CED                                      Area Ext. Comm. Dev. Specialist
Box 191 1st National Center                                     PO Box 1378
Eufaula, OK 74432-0191                                          Ada, OK 74821-1378
brandel@okstate.edu                                             jfrye@okstate.edu




                                           ABSTRACT

        The goal of this paper is to provide an analysis of taxable sales for Eufaula and McIntosh
County. Basic data is used to provide estimates of trade area capture and pull factors. Reported
sales tax data is also used to analyze trends in the county and area.




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       "Readers may make verbatim copies of this document for non-commercial
       purposes by any means."
             ANALYSIS OF RETAIL TRENDS AND TAXABLE SALES FOR
                EUFAULA, OKLAHOMA AND MCINTOSH COUNTY

                                        INTRODUCTION

       Oklahoma communities have been concerned with all aspects of economic development

for the past several years. Creating new jobs and additional income is of concern to rural

communities and urban areas alike. Often, retailing is viewed as a "service" sector dependent on

the "basic" sectors such as oil, manufacturing, and agriculture. Export sectors produce goods and

services sold outside the local or regional economy. Service sectors tend to circulate existing

local dollars rather than attracting "new" outside dollars. The retail sector is important, though,

as retail activity reflects the general health of a local economy. Retail sales also produce sales

tax dollars that support municipal service provision. Many local communities are promoting a

"shop at home" campaign to keep local retail dollars in the community. It will not be possible to

stop all out-of-town spending or sales leakage for a local economy. Opportunities for

improvement do frequently exist, however. Key areas can be identified for improvement.

Analysis of retail trends can identify emerging trade centers. Local leaders in Eufaula requested

the following taxable sales analysis. The specific objectives of the study are:

       1.   Utilize reported sales tax data to analyze trends in the county and area,

       2.   Provide estimates of trade area capture and market attraction, and

       3.   Provide estimates of market attraction, broken out by SIC code.




                                                  1
                            METHODOLOGY AND DATA SOURCES
         A trade area analysis model frequently used is "trade area capture." Trade area capture is

calculated by dividing the city's retail sales by state per capita retail sales. The figure is adjusted

by income differences between the state and relevant local area. The specific equation utilized

is:


                                                       RS C
                                         TACC =
                                                  RS S X PCI C
                                                  PS     PCI S
Where:
         TACc=Trade Area Capture by city,
         RSc=Retail Sales by city,
         RSs=Retail Sales for the state,
         Ps=State Population,
         PCIc=Per Capita Income by county, and
         PCIs=Per Capita Income for the state.

         Trade area capture figures incorporate both income and expenditure factors, which may
be influencing retail trade trends. An underlying assumption of the trade area capture estimate is
that local tastes and preferences are similar to that of the state as a whole. If a trade area capture
estimate is larger than city population then two explanations are possible: 1) the city is attracting
customers outside its boundaries or 2) residents of the city are spending more than the state
average.
         Trade area capture figures can be utilized to estimate the amount of sales going to outside
consumers. To do this a pull factor, which is a measure of an economy's retail sales gap, is
derived using trade area capture figures and city population:

                                                     TAC C
                                            PF C =
                                                      PC
Where:
         PFc=City Pull Factor, and
         Pc=City Population.




                                                     2
       A pull factor of 1.0 means the city is drawing all its customers from within its boundaries

but none from the outside. A pull factor of 1.50 means the city is drawing non-local customers

equal to 50 percent of the city population. A pull factor of less than one means the city is not

capturing the shoppers within its boundaries or they are spending relatively less than the state

average. This is considered leakage of retail sales or a retail sales gap. Additional discussion of

trade area capture and pull factors can be found in the references cited in this report (Barta and

Woods; Harris; Stone and McConnon; Hustedde, Shatter, and Pulver). The Oklahoma

Cooperative Extension Service has been conducting pull factor/gap analysis and sales tax

analysis since 1991 (Woods, 1991).

       City pull factors and trade area capture figures are calculated for fiscal years 1980

through 2003. Data used were sales tax returns as reported by the Oklahoma Tax Commission.

These figures do not include all retail sales (only taxable sales) in an area but provide a proxy.

Population data were obtained from the Oklahoma State Data Center and were consistent with

figures from the1980, 1990, and 2000 Census. Income figures were taken from Bureau of

Economic Analysis estimates for counties. Similar income data for cities were not available so

county income was used as a proxy.




                                                  3
                                 TAXABLE SALES ANALYSIS


       Sales tax returns as reported by the Oklahoma Tax Commission for Eufaula are listed in

Table 1 for the fiscal years 1980 to 2003. Sales tax returns are important to a city because they

reflect the general health of a local economy and also represent significant revenue for the city

budget. In FY 2003, Eufaula collected over $1.3 million in sales tax at tax rates of 3.00% (for 2

months) then 3.50% (for 10 months). Figure 1 plots estimated taxable sales for the same time

period in both actual dollars and inflation-adjusted dollars. Sales are estimated from the sales tax

returns and the sales tax rate that is reported. The Consumer Price Index is used to adjust for

inflation. When taxable sales have been adjusted for inflation, Figure 1 shows that “real” sales

have shown a gradual upward trend since about 1987. Real sales are down slightly for 2003.

       Table 2 lists trade area capture figures for Eufaula from 1980 to 2003. The trade area

capture for Eufaula was at a maximum of 6,718 occurring in 2002. This means that in 2002

Eufaula “captured” the retail sales of 6,718 persons. The 2003 trade area capture equals 6,197.

Figure 2 presents a graphic of these same trade area capture figures. Note that the shape of the

graph is very similar to the shape of the inflation-adjusted sales graph in Figure 1.

       Table 3 lists pull factors for Eufaula for the years 1980 to 2003. The pull factor for

Eufaula ranges from 1.468 to 2.452. Recently, these pull factors have tended to be about 2.26.

The interpretation is that Eufaula is capturing the sales from persons within the city's boundaries,

plus is capturing additional shoppers. In fact, the total number of shoppers is equal to about 2.26

times the population of Eufaula. This does not necessarily mean that Eufaula residents never

shop anywhere outside of Eufaula. What it does imply is that any of this kind of activity is more

than offset by non-residents who do shop in town.

       Table 3 also shows the pull factors for other cities and towns in McIntosh County with a

reported sales tax. Figure 3 presents this information graphically. Historically, Eufaula and

                                                 4
Checotah have similar pull factors. Currently, Eufaula’s pull factors are slightly higher than

Checotah’s. Both communities have had pull factors greater than 2.0 for at least the last four

years. Hanna has the most interesting pull factor. Hanna’s pull factor jumped from 0.57 in 1991

to 3.54 in 1993. Their sales tax collections went from nearly $7,400 in 1991 to over $51,500 in

1993. Their sales tax rate remained constant at 3.00%. It seems likely that some major

establishment (one that collects sales tax) entered the Hanna economy during this time frame.

Rentiesville has just been collecting sales tax since 1998, and their pull factor in 2003 was 0.06.

       Figure 4 shows pull factors for 460+ cities that have sales tax return information

available. The pull factors are presented as a group average by city size. The highest pull factors

fall in the size categories 5,001 to 10,000 and 10,001 to 25,000 and 25,001 to 50,000 in

population. The smallest pull factors fall in the range for cities less than 1,000 in population.

Figure 5 plots Eufaula’s pull factor compared to other cities with population 1,000-5,000.

Eufaula posts pull factors that are consistently above the average for other cities of similar size.




                                                  5
                  Table 1
Tax Returns, Eufaula, Oklahoma, FY 1980-2003

          Year          Collections          Tax Rate
     1980                  $307,965.88         2.00%
     1981                  $342,917.65         2.00%
     1982                  $369,725.93         2.00%
     1983                  $404,892.60         2.00%
           (3)                                 2.00%
     1984                  $116,332.22
           (9)
     1984                  $448,001.80         3.00%
     1985                  $650,470.38         3.00%
     1986                  $644,270.97         3.00%
     1987                  $644,225.56         3.00%
     1988                  $689,979.94         3.00%
     1989                  $786,756.00         3.00%
     1990                  $816,213.90         3.00%
     1991                  $838,448.11         3.00%
     1992                  $894,958.71         3.00%
     1993                  $908,812.17         3.00%
     1994                  $956,078.34         3.00%
     1995                $1,024,950.28         3.00%
     1996                $1,049,929.24         3.00%
     1997                $1,033,279.38         3.00%
     1998                $1,051,669.97         3.00%
     1999                $1,063,356.77         3.00%
     2000                $1,145,788.19         3.00%
     2001                $1,228,873.55         3.00%
     2002                $1,308,917.20         3.00%
           (2)                                 3.00%
     2003                  $224,498.70
           (10)
     2003                $1,153,112.11         3.50%
     (*)
         Denotes number of months of the fiscal year
     that sales tax was collected at the tax rate shown.




                           6
            Figure 1. Estimated Retail Sales for Eufaula, OK 1980-2003:
                           Actual and Inflation-Adjusted

$50,000,000.00

$45,000,000.00

$40,000,000.00

$35,000,000.00

$30,000,000.00

$25,000,000.00

$20,000,000.00

$15,000,000.00

$10,000,000.00

 $5,000,000.00

        $0.00
             80
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                                                              Actual             Inflation-Adjusted



                                                                   7
               Table 2
Trade Area Capture, Eufaula, Oklahoma,
              1980-2003

    Year Trade Area Capture Population
   1980         5,382          3,159
   1981         4,919          3,350
   1982         5,351          3,400
   1983         5,605          3,400
   1984         5,422          3,450
   1985         5,492          3,500
   1986         5,475          3,600
   1987         5,639          3,600
   1988         5,798          3,550
   1989         6,276          3,450
   1990         6,423          2,661
   1991         6,447          2,680
   1992         6,571          2,724
   1993         6,370          2,781
   1994         6,482          2,905
   1995         6,644          3,043
   1996         6,401          3,134
   1997         6,139          3,263
   1998         6,276          3,367
   1999         6,016          3,490
   2000         6,121          2,639
   2001         6,255          2,735
   2002*        6,718          2,740
   2003*        6,197          2,740
      * Based on 2001 BEA income data.




                     8
         Figure 2. Trade Area Capture for Eufaula, OK 1980-2003

8,000
7,000

6,000
5,000

4,000

3,000
2,000

1,000

   0
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                                       9
                           Table 3
  Pull Factors for Cities and Towns in McIntosh County
                         1980-2003

       Checotah      Eufaula      Hanna      Rentiesville
1980    1.672         1.704       0.556          ---
1981    1.518         1.468       0.510          ---
1982    1.876         1.574       0.564          ---
1983    1.951         1.649       0.503          ---
1984    1.975         1.571       0.543          ---
1985    2.031         1.569       0.849          ---
1986    2.148         1.521       0.636          ---
1987    2.290         1.567       0.583          ---
1988    2.191         1.633       0.508          ---
1989    2.146         1.819       0.410          ---
1990    2.214         2.414       0.681          ---
1991    2.221         2.406       0.569          ---
1992    2.244         2.412       1.375          ---
1993    2.121         2.290       3.540          ---
1994    1.994         2.231       3.472          ---
1995    1.934         2.184       3.692          ---
1996    1.896         2.043       3.415          ---
1997    1.933         1.881       3.346          ---
1998    2.135         1.864       3.430        0.009
1999    2.072         1.724       3.409        0.051
2000    2.137         2.320       2.552        0.043
2001    2.135         2.287       2.493        0.072
2002    2.310         2.452       2.572        0.063
2003    2.169         2.262       2.470        0.063




                          10
              Figure 3. Pull Factors for Cities and Towns in McIntosh
                                 County, 1980-2003

4.000
3.500
3.000
2.500
2.000
1.500
1.000
0.500
0.000
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                                 Checotah                 Eufaula             Hanna           Rentiesville



                                                               11
        Figure 4. Average Pull Factors by City Size, 1980-2003

1.60

1.40

1.20
                                                                         Less 1000
1.00                                                                     1-5
                                                                         5-10
0.80                                                                     10-25
                                                                         25-50
0.60                                                                     Grtr 50

0.40

0.20

0.00
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                                            12                     20
                 Figure 5. Pull Factors for Eufaula vs. Other Cities with
                                 Population 1,000-5,000

3.00

2.50

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1.00

0.50

0.00
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                                                         1,000-5,000          Eufaula



                                                               13
                             SALES GAP ANALYSIS FOR EUFAULA, OK

      For purposes of this study, a sales gap analysis refers to a pull factor study that has been analyzed

by SIC code for the 8 retail sectors. Sales gap coefficients may be interpreted in exactly the same

manner as are pull factors. See Table 4 for Eufaula’s sales gap analysis. Table 5 provides a detailed

description of the 8 retail SIC categories.

      For Eufaula’s Building and Gardening Materials, the number of shoppers has decreased from a

high of 5,742 in FY 1998 to 4,530 in FY 2003. (See top half of Table 4.) Eufaula's population is about

2,700; thus, in 2003, this sector of the Eufaula economy was capturing a total number of shoppers that

was equal to about 1.65 times the town’s population. (See bottom half of Table 4.)

      The category of General Merchandise tends to be dominated by Wal-Mart. Wal-Mart reports all

its sales under this category (even though it sells clothing, grocery items, etc. as well). In general, towns

that do not have a Wal-Mart will post sales gap coefficients that are less than 1.0 for this category.

Eufaula is an exception to this rule. Eufaula does not have a Wal-Mart, and their gap coefficient in this

category was still a high 1.276 in FY 2003. The closest Wal-Mart is about 13 miles away in Checotah.

      Grocery stores in Eufaula had a very high gap coefficient of 4.306 in 2003. Consumers tend to

appreciate the convenience of shopping for groceries close to home. In addition, most residents outside

of the city limits will travel into the local grocery store to shop; consequently, it is common to find that

even very small towns post high gap coefficients (over 1.0) for this sector. Eufaula is no exception.

Plus, visitors to Lake Eufaula probably also buy significant amounts of groceries in Eufaula’s grocery

stores.

      SIC category 55 is difficult to interpret because motor vehicle and gasoline sales are exempt from

municipal sales tax in Oklahoma. Most of the sales tax collection reported under this category appears

to stem from auto parts stores and other retail sales from gas stations. For instance, most gas stations



                                                     14
sell snack items, tires, some auto parts, oil, anti-freeze, etc. Sales tax collections for Eufaula in this

category indicate that these types of businesses attracted the residents of Eufaula times 3.082 in FY

2003. Again, this is probably due to significant tourist traffic.

      Apparel sales are reported under SIC 56. It is very difficult for small to medium sized towns to

post high sales coefficients in the category of apparel. Many small towns have nearly zero sales in this

category, and it is common to see sales gap coefficients that are less than 0.10 in these towns. Cities

with large malls tend to be the most successful at capturing the market. Eufaula does relatively well in

this category, capturing 839 shoppers in FY 2003 for a gap coefficient of 0.306. This, however, is a

decline from FY 2000 when the gap coefficient was a much stronger 0.603.

      SIC 57 reports Furniture and Home Furnishings. Also included are appliance and electronics

stores, drapery and floor covering stores, and music stores. This category is often viewed from the

perspective that most furniture purchases are made in either Tulsa or Oklahoma City. Oklahoma City,

for example, has a large cluster of retail furniture stores centralized in one geographic area. Eufaula’s

pull factor in this category is a very strong 1.541 in FY 2003. This is the highest pull factor in this

category over the 6 years shown for Eufaula.

      Eating and Drinking Places, SIC 58, is one of the most straightforward retail sectors. It contains

restaurants and bars. Restaurants and bars in Eufaula captured 7,925 customers in FY 2003. Currently,

restaurants in Eufaula tend to attract a total number of shoppers that is equal to about 2.892 times the

town’s population.

      SIC 59, or Miscellaneous Retail, contains a host of retail activity, including pharmacies, florists,

liquor stores, and antique stores. These are often the downtown or Main Street merchants. Eufaula's

pull factor in this category increased from 1.514 in 2002 to 1.694 in 2003. These are exceptionally

strong values for this particular category, for a town this size.



                                                      15
                                                                    Table 4
                                              Retail Sales Gap Analysis by Standard Industrial
                                             Classification (SIC) Code, Eufaula: Fiscal 1998-2003

                    TRADE AREA CAPTURE                         FY 1998       FY 1999      FY 2000      FY 2001         FY 2002    FY 2003
            Building, Gardening & Merchandise (52)                 5,742         4,978        5,293        5,300          5,409     4,530
            General Merchandise (53)                               2,246         2,716        3,041        3,077          2,669     3,497
            Food Stores (54)                                      10,184         9,738      10,236        11,272         10,399    11,799
            Automobile Dealers & Gas Stations (55)                 9,363         9,455        9,202        9,816          8,408     8,444
            Apparel & Accessory Stores (56)                        2,025         1,832        1,590        1,310           551        839
            Furniture & Home Furnishings (57)                      3,604         4,060        3,996        3,967          4,113     4,223
            Eating & Drinking Places (58)                          7,910         8,728        8,388        8,351          7,458     7,925
            Miscellaneous Retail (59)                              5,369         5,241        5,117        4,887          4,148     4,641


                  SALES GAP COEFFICIENT *                      FY 1998       FY 1999      FY 2000      FY 2001         FY 2002    FY 2003
            Building, Gardening & Merchandise (52)                  1.705         1.426       2.006         1.934         1.974     1.653
            General Merchandise (53)                                0.667         0.778       1.152         1.123         0.974     1.276
            Food Stores (54)                                        3.025         2.790       3.879         4.114         3.795     4.306
            Automobile Dealers & Gas Stations (55)                  2.781         2.709       3.487         3.583         3.068     3.082
            Apparel & Accessory Stores (56)                         0.601         0.525       0.603         0.478         0.201     0.306
            Furniture & Home Furnishings (57)                       1.070         1.163       1.514         1.448         1.501     1.541
            Eating & Drinking Places (58)                           2.349         2.501       3.178         3.048         2.722     2.892
            Miscellaneous Retail (59)                               1.595         1.502       1.939         1.784         1.514     1.694

* For purposes of this paper, when analyzed by SIC code, the pull factor is referred to as the sales gap coefficient




                                                                            16
                                           TABLE 5
                                     TYPES OF BUSINESSES
                              DESCRIBED BY THE RETAIL SIC CODES

52 Building Materials                                          58 Eating and Drinking Places
       Lumber yards including home centers
       Paint and wallpaper stores
       Glass stores                                            59 Miscellaneous Retail
       Hardware stores                                               Drug and proprietary stores
       Retail Nurseries                                              Liquor Stores
       Lawn and garden supply stores                                 Used merchandise stores including antique
       Mobile Home dealers                                           stores and pawn shops
                                                                     Sporting goods stores
53 General Merchandise Stores                                        Book stores
      Variety stores                                                 Stationary stores
      Department stores                                              Jewelry stores
      Warehouse clubs                                                Hobby, toy, and game shops
      General combination merchandise stores                         Camera and photographic supplies stores
                                                                     Gifts, novelties and souvenirs
54 Food Stores                                                       Luggage and leather goods stores
      Grocery stores (Supermarkets)                                  Sewing, needlework, and piece goods stores
      Convenience stores both with and without gasoline              Catalog and mail order sales (includes e-
      Meat and fish markets                                          commerce stores)
      Fruit and vegetable markets                                    Vending machine operators and direct selling
      Candy, nut and confectionery stores                            establishments
      Dairy stores                                                   Fuel oil dealers
      Retail Bakeries                                                Bottled gas dealers
                                                                     Florists
55 Automotive Dealers and Gasoline Service Stations                  Tobacco Stores
      Motor vehicle dealers (new and used)                           Newsstands
      Tire stores                                                    Optical goods stores
      Auto supply stores                                             Cosmetic stores
      Gasoline stations                                              Pet and pet supply stores
      Boat dealers                                                   Hearing aid and artificial limb stores
      RV dealers                                                     Art dealers
      Motorcycle dealers                                             Telephone and typewriter stores

56 Apparel and Accessory Stores
      Men and boys apparel
      Women’s apparel and accessories
      Children and infant’s wear
      Family apparel
      Shoe stores
      Custom tailor and seamstresses

57 Furniture and Home Furnishings Stores
      Furniture stores
      Floor covering stores
      Drapery, curtains and upholstery stores
      Pottery and crafts made and sold on site
      Household appliance stores
      Radio and TV and consumer electronics stores
      Computer and computer software stores
      Record and prerecorded tapes stores
      Musical instruments stores

.

                                                          17
                         BUSINESS DEVELOPMENT STRATEGIES

      Retail trade trends reflect the overall health of a local economy. All out shopping or sales

leakage cannot be stopped. Often, larger economic trends (State-National-Global) overwhelm

retail opportunities. There are programs and actions that can assist retail trade activities,

however.

      Concerned leaders and business persons can focus on business development by forming a

business assistance committee to begin implementing some of the assistance activities or

working with the existing chamber of commerce. The following activities were in part of a retail

trade improvement program. These activities can improve the climate for business and show the

community's commitment to support local business.

1.   Analyze the local business sector to identify needs and opportunities to be pursued by the

     program. Businesses often do not have the resources to study the economy (local, regional,

     and national) and how they fit in. They need practical data and analysis that will help in

     their individual business decision-making. In particular, economic analysis can identify

     voids in the local or regional market that can possibly be filled by expanding or new

     business. Examples of analysis include the pull factor analysis reported here and consumer

     surveys to identify needs and opportunities.

            In addition to economic analysis, information is needed on the needs or problems of

     individual businesses and of the business district as a whole. As needs are identified, action

     can be taken to improve the situation. For example, a business may need help in preparing a

     business plan to qualify for financing. Perhaps the appearance of buildings and vacant lots

     is detrimental to attracting people to be business district, or perhaps poorly coordinated store

     hours are a hindrance. Once these needs are identified, a business development program can




                                                 18
     initiate action. A periodic survey of local business needs can form the basis of a business

     development program's work plan.



2.   Provide management assistance and counseling to improve the efficiency and profitability of

     local businesses. Many local businesses are owner-operated, earn low profits, and have

     difficulty obtaining financing. Businessmen often need additional education and training in

     improving business management skills like accounting, finance, planning, marketing,

     customer, relations, merchandising, personnel management, or tax procedures. This

     assistance and counseling can be provided through seminars and one-to-one aid. Sources of

     assistance include the Service Corps of Retired Executives (SCORE), Small Business

     Development Center program sponsored by the Small Business Administration,

     Universities, Technology Centers, Oklahoma Department of Commerce, and the

     Cooperative Extension Service. The intent is to aid small businesses in becoming more

     competitive.



3.   Assist new business start-up and entrepreneurial activity by analyzing potential markets and

     local skills and matching entrepreneurs with technical and financial resources. Establishing

     a business incubator is another way to assist new businesses. An incubator is a building

     with shed space or service requirements that reduce start-up costs for new businesses.

     Incubators have been successful in many locations but are not the right answer for every

     town. A successful incubator must have long-range planning, specific goals, and good

     management in order to identify markets and entrepreneurs.



4.   Promote the development of home-based enterprises. Home-based work by individuals is

     increasing because of the flexibility offered and because in some areas, it may be the most
                                                19
     realistic alternative. Home-based enterprises can include a great variety of full or part-time

     occupations such as food processing, quilting, weaving, crafts, clothing assembly, mail order

     processing, or assembling various goods.



5.   Provide assistance in identifying and obtaining financing. Small businesses often have

     difficulty obtaining long-term bank financing for expansion because they lack assets to

     mortgage, cannot obtain affordable terms or rates, or cannot present a strong business plan.

     A business development program can identify public loan programs and package them with

     private loans to make projects feasible.



6.   Provide assistance in undertaking joint projects such as:

           improved appearance

           improved management of the commercial area

           building renovation

           preparation of design standards

           joint promotions and marketing

           organizing independent merchants

           special activities and events

           fund raising

           improved customer relations

           uniform hours of operation



     Undertaking these projects requires cooperation, good organization, and efficient

     management. These projects can improve a business district's competitive position and


                                                 20
     attract new customers. The Oklahoma Main Street Program provides many good examples

     of towns working together for economic revitalization. The Main Street Program developed

     by the National Trust for Historic Preservation, is built around the four points of

     organization, design, promotion, and economic restructuring.



7.   Develop a one-stop permit center. There is great deal of red tape involved in starting a

     business including registering a name, choosing a legal form, and determining what licenses,

     permits, or bonds are needed. Other concerns include internal revenue service requirements,

     unemployment insurance, sales tax permits, and state withholding taxes. Having this type of

     information available in one location will make life easier for potential businesses.



8.   Involve active organizations and the media. Groups such as the chamber of commerce, civic

     clubs, etc. can encourage a healthy business climate. The local media can also support small

     business and aid in developing awareness of the importance of local business.




                                                 21
                                           SUMMARY

    This report has analyzed taxable sales trends for the city of Eufaula and McIntosh County.

The level of taxable sales in Eufaula has grown significantly in nominal terms since 1980. After

correcting for inflation, taxable sales have still grown gradually since about 1987. (Although

they are down some for 2003.) Located right on beautiful Lake Eufaula and U.S. Route 69,

Eufaula, the county seat of McIntosh County, has very strong retail pull. It is not, however, the

clear center of trade for residents in McIntosh County. Eufaula and Checotah have similar pull

factors (although Eufaula’s are recently slightly higher).

    Despite its relative success (pull factors greater than 2.2), Eufaula’s economy is certainly

subject to some sales leakage or “out-shopping” (as most, if not all, economies are). For

example, the closest Wal-Mart (according to the store locator at www.walmart.com) is located

just 13 miles away in Checotah. A Supercenter is located 27 miles away in McAlester and

another is located 30 miles away in Okmulgee. These three communities, as well as Henryetta

and Tulsa, certainly provide a fair amount of competition for businesses in Eufaula. Even so,

Eufaula has consistently outperformed other cities with population 1,000-5,000 over the last two

decades.




                                                 22
                                        REFERENCES

Barta, S.D. and M.D. Woods. Gap Analysis as a Tool for Community Economic Development.
    WF 917, Oklahoma Cooperative Extension Service, Oklahoma State University,
    <http://agweb.okstate.edu/pearl/agecon/resource/wf-917.pdf>, 2000.

Harris, Thomas R. "Commercial Sector Development in Rural Communities: Trade Area
    Analysis." Hard Times: Communities in Transition. Western Rural Development Center,
    WREP 90, September 1985.

Hustedde, R., R. Shatter, and G. Pulver, Community Economic Analysis: A How To Manual.
    Ames, Iowa. North Central Regional Center for Rural Development, 1984.

Oklahoma Department of Commerce, Research and Planning Division. Population Estimates for
    State, Counties, and Cities, Oklahoma: April 1, 1980-July 1, 1989. December 1990.

Oklahoma Tax Commission City Sales Tax Collections Returned to Cities and Towns in Fiscal,
    1980 to 2002. (Fiscal Year End-June 30)

Stone, K. and J.C. McConnon, Jr. "Trade Area Analysis Extension Program: A Catalyst for
    Community Development," Proceedings of Realizing Your Potential as an Agricultural
    Economist in Extension. Ithaca, New York, August 1984.

Tennessee Valley Authority. "Focus on the Future," Workbook provided at RedArk
    Development Authority Symposium on Economic Development Leadership, Shawnee,
    Oklahoma, June 1986.

U.S. Department of Commerce Bureau of The Census. Resident Population by County, 1990 to
    2001. http://www.census.gov/populations/extimates/county/ (June 2002)

U.S. Department of Commerce, Bureau of Economic Analysis. "Personal Income by Major
    Source and Earnings by Major Industry," Regional Economic Information System, 1980 to
    2000

Woods, Mike D. Retail Sales Analysis in Oklahoma By County, 1977, 1982, 1987. Bulletin B-
   801, Agricultural Experiment Station, Oklahoma State University, October 1991.




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