10.0. EDSR 03-14-1994 10,6)'
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
410
MEMORANDUM
TO: ECONOMIC DEVELOPMENT
AUTHORITY
FROM: WILLIAM RUBI14,.."ECONOMIC DE OPMENT
COORDINATOR
DATE: MARCH 10, 1994
SUBJECT: 1992 RETAIL SALES ESTIMATE
FOR ELK RIVER,MINNESOTA
Staff is in receipt of the 1992 gross retail sales for Elk River businesses.
These numbers were derived from the Tax Research Division of the
• Minnesota Department of Revenue. Highlights of this information include:
- Retailing in Elk River is approximately a $92.5 million endeavor
222 businesses helped generate the retail sales during 1992
- Elk River possesses approximately 53% of Sherburne County's gross
retail sales: The County's 1992 sales were estimated at $174.76
million.
- Elk River's 1992 gross retail sales were down slightly from the 1991
estimate of$96.07 million. The decline is estimated at 5.1%
- The largest decline from 1991 to 1992 occurred in the "Food Stores"
category where a $3.34 million decline was reported. This represented
an 8.5% decline from 1991 to 1992.
- Auto dealers and service stations had a small decline of less than
$172,000 from 1991 to 1992
- Eating and drinking establishments declined just over $274,000 in
• gross sales from 1991 to 1992- yet the number of establishments
increased from 18 to 20 in Elk River
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 •(612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
- Nearly 39% of Elk River's gross retail sales in 1992 was attributable to
• food stores. This represented $35.89 million in sales
- Another 30% (or $27.87 million) is derived from automobile dealers
and service stations
After the food store category and the automotive category, the retail
sales in Elk River drop off sharply. "Miscellaneous retail" (which
includes "general merchandise stores") accounted for $12.42 million (or
13.43%) of the 1992 sales in Elk River. Lumber and hardware stores
generated $7.3 million in gross sales (or 7.9% of Elk River's total).
This was followed closely by the $6.98 million reported by Elk River's
eating and drinking establishments which accounted for 7.54% of the
1992 total retail sales. Apparel and accessory stores realized $1.13
million in sales (or 1.23% of the total). About 1% ($883,275) was
reported by the furniture and home furnishing businesses in Elk River
The Standard Industrial Classification (or SIC Code) categorizes retail
businesses as follows:
TYPE OF RETAILER SIC
II) Lumber, hardware, etc. 52
General merchandise stores 53
Food stores 54
Auto dealers, service stations 55
Apparel and accessory stores 56
Furniture/home furnishings 57
Eating and drinking establishments 58
Miscellaneous retail 59
RETAIL OPPORTUNITIES IN ELK RIVER
It is difficult to estimate how many "retail dollars" are leaving Elk River for
the regional shopping malls which are "home" to retailers such as general
merchandise stores and apparel and accessory stores. It is these general
categories where Elk River's sales numbers tend to drop off However, as
power centers such as Elk Park Center open, it is likely that additional
apparel and accessory stores and general merchandise stores will be located
in Elk River. This in turn, will help attract retail dollars in to the community
from the surrounding area. Elk River residents will still rely perhaps on
regional malls for the primary shopping experiences.
The other elements which help drive retail sales are that of population
Mir growth and disposal income. Given Elk River's rapid growth over the past
ten years, it is easy to see that the community can support new discount
• retailers. The disposable or "after tax" income also goes a long way in
determining an area's retail sales.
eda-item
•
•
• Elk River Retailers
1992 Retail Sales
Type of Number of
Retailer S.I.C. Retailers Gross Sales
Lumber, Hardware, etc 52 11 $7,313,894
Food Stores 54 9 35,890,525
Auto Dealers, Service Stations 55 17 , 27,870,304
Apparel and Accessory Stores 56 5 1,135,819
Furniture/Home Furnishings 57 13 883,275
Eating & Drinking
Establishments 58 20 6,981,394
Miscellaneous Retail
• (including General
Merchandise Stores) 59 & 53 147 12,420,013
TOTAL 222 $92,495,224
• Source: Tax Research Division,Minnesota Department of Revenue
4111
1992 Elk River Retail Dollar
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Type of Retailer Value
• Lumber, Hardware, etc. 7.91 cents
Food Stores 38.80 cents
Auto Dealers, Service Stations 30.13 cents
Apparel &Accessory Stores 1.23 cents
Furniture/Home Furnishings 0.96 cents
Eating & Drinking Establishments 7.54 cents
Miscellaneous Retail (including General
Merchandise Stores) 13.43 cents
TOTAL $1.00
•
Sherburne County Retailers
1992 Retail Sales
Type of Number of
Retailer S.I.C. Retailers Gross Sales
Lumber, Hardware, etc. 52 36 $30,372,104
General Merchandise Stores 53 4 6,870,643
Food Stores 54 21 46,346,396
Auto Dealers, Service Stations 55 35 42,970,553
Apparel and Accessory Stores 56 6 1,136,703
Furniture/Home Furnishings 57 30 6,974,796
•
Eating & Drinking Establishments 58 52 14,141,527
Miscellaneous Retail 59 305 25,952,574
TOTAL 468 $174,765,296
• Source: Tax Research Division,Minnesota Department of Revenue