What is the minimum neighborhood population and other demographic statistics (income level, age, education) major retailers in Canada (i.e. Wal Mart, Costco, World Health, Best Buy) want to see before making the decision to open a store?
Hello! Thank you for choosing Wonder to assist with your research into the demographics of retail site selection. I was able to find reliable, recent trade area requirements for seven major retailers. These demographic requirements include population density, store traffic during specific drive times, income, and education. As requirements vary by retailer, this is how I have broken down my findings below.
Costco requires, within a 5-mile trade area radius, 200,000 people and a median income of $75,000. Their target demographic also includes college educated, 2-person+ households.
Whole Foods requires, within a 3-mile trade area radius, 250,000 people and a median income of $75,000. Their internal model also evaluates education levels (targeting college-education consumers), interest in natural foods, and drive times.
Walmart does not release customer counts or trade area demographics. However, they prefer low to middle income areas. They also have alternative retail offerings for different markets, such as discount stores, supercenters, and (currently only in the U.S.) neighborhood markets.
Starbucks seeks a mix of residential and worker customers with a college education and a minimum median income of $50,000. They also require a minimum of 40,000 vehicles per day with access to the store.
Pet Supermarket recently merged with PetValue. They require, in a 5-mile radius or 15-minute drive, a minimum of 50,000 people, $50,000 median income, and 60% owner-occupied homes.
SHOPPER'S DRUG MART
Shopper's Drug Mart requires 10,000 people in order to support a 15,000-18,000 sq. ft. store. This number is for their regular stores, not their smaller "Simply Pharmacy" or other specialty locations.
To sum up, here you'll find trade area demographic requirements for a selection of major Canadian or North American retailers. Each has individual requirements for site selection, and some have different retail models for different markets. I hope you find this information helpful as you continue researching your specific location. Thank you again for asking Wonder, and please let us know if there is anything else we can do for you.