Analysis back on Le Mars' downtown: What's hot and what's not

Sometimes the familiar is too close to our face to see it clearly.

Results are in on a survey and analysis of downtown Le Mars that aimed to give fresh perspective about its strengths and weaknesses -- and how to use that information to improve.

About 350 individuals including more than 20 business owners filled out surveys about the downtown this summer.

These surveys were compiled with information from an earlier brainstorming session by local residents and geo-economic data, under direction of the Iowa Department of Economic Development's (IDED) Main Street Iowa program.

Strengths of Le Mars' downtown, according to the survey, are stability with long-owned businesses, convenience for in-town and surrounding small community shoppers, services that draw people downtown, wealth in the community, a highway bringing traffic through the downtown and an Internet presence.

Strikes against the downtown include a lack of selection or variety available, lack of entertainment opportunities, business hours that aren't convenient and proximity to Sioux City's larger shopping offerings.

Shopping for convenience

When ranking the strengths of the downtown, about one-third of respondents pointed to convenience.

Le Mars' downtown is within a 5-10 minute drive for about 9,757 people, the analysis found.

The no. 1 reason people reported going downtown was for service-related errands like banking, paying a bill or having a repair done.

More than one-half said these errands bring them downtown once or twice a week. Nearly one-fourth said that type of business brings them downtown daily.

Eating at a restaurant was the second most common reason people go downtown, with more than one-third doing so once or twice a week. Shopping was the third reason.

Free parking adds to the downtown's convenience -- people aren't concerned about running out of time on a parking meter.

Along with that, Highway 3 intersects downtown Le Mars, bringing in about 4,000 vehicles in addition to regular Le Mars traffic.

The analysis drew out a five, 10 and 20 minute driving range from the downtown's center and found how many people live in each circle and how much money they spend.

It used this information to determine whether money was being drawn into each circle or if it was being spent outside of that range.

The data showed that retailers and restaurants are drawing in outside dollars.

Total retail, food and drink sales within a 10-minute drive show a $18.8 million surplus -- meaning outside customers spend $18.8 million beyond the demand of customers living inside that circle.

Le Mars also draws in customers outside the 20-minute drive area for automobile and parts sales, specialty food stores, limited-service eating places (like the ice cream parlor), office supply vendors and used merchandise stores, the analysis stated.

"I think we should feel good about how much we draw from the outside," said Le Mars Chamber of Commerce Director Neil Adler.

Friendly service

Nearly 38 percent of those surveyed said customer service in downtown Le Mars is stronger than other business districts they visit.

Business owners also prioritize customer service -- more than 90 percent said customer service and reputation are the main reason they believe customers do business with them.

"Businesses take such pride in wanting to deliver those things," Le Mars Main Street Director Mary Reynolds said. "They know it doesn't do any good if a customer goes into the store and doesn't feel appreciated."

According to the analysis, retailers downtown recognize they can't compete with Wal-Mart's buying power, so they're taking a different approach.

"Local retailers are working to refine their position and niche in the market by emphasizing customer service and quality products," the analysis stated. "

Local coffers

Another strength the survey showed was the wealth of the community.

Nearly one-half of those surveyed reported their gross annual household income ranged from $50,000 to $99,999.

"There is real wealth in your community," said IDED representative Jim Thompson, who presented the analysis.

That level of wealth surprised Reynolds.

"I never thought the figure would be as high as it was," she said. "We have to be very grateful to the large corporations that have continued to make our town show a growth -- and a large part of that is Wells' Dairy and other large corporations."

The analysis broke Le Mars' population into different categories based on age and economic status.

The highest percentage of people living within 10 minutes of downtown Le Mars -- about 27 percent -- fall under the category of "Green Acres."

Those households, the analysis said, are upper middle class with a median household income of $63,900. The average home value for this group is $179,000.

The majority are married couples, with or without children. According to the analysis, they like do-it-yourself home and yard projects, motorcycles and trucks, bike riding, bicycling, power boating and hunting. Median age for "Green Acres" is about 41.

The next most populous groups, 18 and 15 percent respectively, are "Midlife Junction" (middle class) and "Simple Living" (lower middle class).

Anchored downtown

Another major strength of the downtown, according to the analysis, is its stability.

More than 80 percent of business people surveyed said they own their business location.

In addition, 95 percent of businesses involved in the survey have existed downtown for 10 or more years, and most of those for more than 20.

"Downtown Le Mars has remained extremely healthy and stable with key anchors that have been in business for may years," a summary report from IDED stated.

Some of these businesses supply downtown shoppers' biggest demands -- clothes, shoes, gifts and cards -- according to the survey.

But the "anchor businesses" come with a double-edged sword.

Some have been family owned and operated for decades, but at this point, there is not someone in the next generation wishing to take over ownership.

"We are concerned about those mainstays," Reynolds said. "Those businesses are holding our downtown together."

Attracting new entrepreneurs isn't one of the downtown's strengths, the analysis stated.

The Le Mars Chamber of Commerce, she said, is "ardently" working with people to step into those business owners' shoes.

Looking for variety

Ironically, one of the strengths pointed out by the IDED study was "a healthy combination of retail stores, offices and medical service providers" along with "a wide array of eating choices" at downtown restaurants.

"The market analysis facilitators thought we have an absolutely wonderful community. They love the combination of businesses, industry, "Reynolds said.

When they focused on the downtown area, they said Le Mars seemed more fortunate than most communities they look at.

"It's rare to see two jewelry stores, to see multiples of things, multiple gift stores," Reynolds said. "They felt we had a great combination."

However, the survey showed people would like more variety, Reynolds said.

More than two-thirds said Le Mars' downtown is weaker than other places they shop.

And when rating themselves, zero business owners surveyed identified variety as the main reason customers visit.

Reynolds suggested customers give examples of items to business owners they'd like to see them carry.

"If you're shopping online, you're not giving the stores the chance to expand to the varieties you may want that don't exist there," Reynolds said.

Inconvenient timing

Although the downtown may be convenient, survey responders said business hours downtown were not.

"Get the businesses to change their hours," one survey respondent said. "I rarely shop downtown because it is not conducive to me."

Others agreed, suggesting more "consumer friendly" hours, like being open until 6:30 or 7 p.m.

Wednesdays, when the stores are open later, is also church night, so people have time conflicts then, one respondent pointed out.

"Everyone I know, myself included, would shop downtown if it was open after 5 when we are not at work," another said.

The traveling dollar

Another challenge for downtown businesses: being within a half-hour drive of Sioux City's larger shopping districts.

When asked where they do most of their non-grocery shopping, such as clothing, home furnishings and sporting goods, one-half the survey respondents listed Sioux City.

And, although Le Mars retailers have a strong pull for residents that live within a 10-minute from the center of downtown, residents living within a 20-minute drive are turning to retailers and restaurants outside that range, causing $12.9 million in "leaked" dollars from that area.

About $8 million of that leakage is retail and about $4 million is food and drink.

Those numbers, the analysis said, are "a sure indicator of the Sioux City retail market's influence on the broader region."

Some of the biggest leaks are dollars spent at full-service restaurants, department stores, gas stations, stores selling building materials and electronics, furniture stores and health and personal care stores.

In addition, the Internet shopping market is drawing some away from downtown.

Nearly 70 percent of those surveyed said they'd purchased something online in the past 12 months.

However, downtown businesses aren't avoiding the Internet themselves. Of those surveyed, 71 percent said they offer their own websites.

Not entertaining

Even before the Royal T III movie theater closed last week, almost 40 percent of people surveyed said adding entertainment-oriented businesses downtown was a high priority. An additional 46 percent said it was a moderate priority.

Several survey responses asked for a new movie theater or updates to the existing one.

"We need to think about the fact that 20 minutes north and south we have much competition (in terms of movie theaters); it draws away from downtown eating and shopping as well," one survey respondent said.

One survey respondent suggested adding more family-based entertainment options.

Other suggestions included adding an arcade or music store, mini golf, and a dance studio at which ballroom dancing is taught.

So, now what?

The downtown market analysis is designed by Main Street Iowa as a sort of "self-help" program.

Le Mars was one of seven Iowa communities to receive the analysis, thanks to a grant written by former Main Street Manager Jayne McGuire.

The goal was to help identify looming challenges, emerging opportunities and priorities for Le Mars -- not necessarily to give specific answers.

"For Le Mars," the analysis state, "the completion of this market study is not an end, but rather the beginning of a new phase in the community's downtown enhancement initiative."

For a deeper look at what's next for Le Mars' downtown and what the survey suggests, read the second story in Friday's Daily Sentinel.