Comment and analysis on all things Charlotte

Why retailers come to an area

I’m a sucker for a good business news story, and just came across on in the Asheville Citizen-Times, examining “Why no Bass Pro or Academy sports in Asheville area?” The basics:

The request list goes on: Macy’s, Hobby Lobby, Academy Sports, Bass Pro Shops, Ikea, Zara, Forever 21.

So, why don’t all these retailers just locate here and satisfy the mountains’ voracious shoppers?

The reasons get complicated, but it comes down to the numbers — household income, population density, potential profitability and more — and then finding land, a building and rent that fit the budget.

Some of it also comes from the fact that retailers occasionally overlook or undervalue the Asheville market when strictly adhering to basic data, experts say.

And yes, the best-run retailers have complicated statistical models that predict store profitability.

3 Responses to “Why retailers come to an area”

  • Jan
    27
    2014

    Someone oughta remind Ashevillians that for a LONG time, there wasn’t an IKEA between Atlanta and Washington, DC. It takes a LOT of local demand to get an IKEA store — and now that Charlotte has one, I would bet a donut that Raleigh (and by extension Asheville) will NEVER get one.

  • Jan
    27
    2014

    And oddly, you were writing this while I was at, yes, IKEA. Asheville doesn’t get an IKEA. Period. Raleigh will get one eventually though, the question is just whether it happens two years from now or 20 years from now.

  • Jan
    28
    2014

    I still lean toward “never”. But of your numbers, the 20 year figure is more accurate.

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