Downtown Happy Valley Retail Market Assessment January 2010
Downtown Happy Valley Retail Market Assessment i
Table of Contents
Introduction...................................................................................... 1
Section 1: Retail Market Analysis................................................... 3
Section 2: Consumer Research..................................................... 9
Section 3: Conclusions.................................................................. 10
Appendix A: Demographic Profile ............................................. 12
Appendix B: Retail Demands...................................................... 18
Appendix C: Shopper Survey Results ........................................ 22
Acknowledgement
The Downtown Happy Valley Retail Market Assessment was funded by the
Clackamas County Main Street Program.
Downtown Happy Valley Retail Market Assessment 1
Introduction
Clackamas County contracted with Marketek, Inc. to conduct this retail assessment. For purposes of this research sponsored by the Clackamas County Main Street Program, the 22-acre Happy Valley Town Center
Development at SE Sunnyside Road and 162nd Avenue is viewed as the community’s downtown commercial district. At the heart of downtown
Happy Valley’s long term success is its ability to offer residents, visitors and employees a welcoming environment and a shopping and entertainment experience unlike what they find elsewhere. The purpose of this retail
market overview is to initiate a market-based business development strategy that addresses Happy Valley’s desire to have a strong and vital downtown and overall commercial base.
Downtown Program Approach Although Happy Valley does not have an operational Main Street Program, it should be noted that the research focuses on one of the four
key elements of Main Street – Economic Restructuring.
Downtown Programs are often organized according to the Main Street Approach, which focuses on four critical components
for creating downtown success and vitality: Promotion/Identity Building,
Design/ Physical Improvements, Economic Development and Organization.
1) Promotions/Identity Building: Identify, develop and promote the
image and promise of downtown by marketing its unique characteristics to shoppers, investors, new businesses and visitors. Create an effective promotion strategy to forge this positive image.
Create an atmosphere of fun and activity. 2) Design/Physical: Capitalize on and improve downtown’s physical
assets. Create an inviting atmosphere to convey a visual message about the comfort and vibrancy of downtown. Increase the utility and
user-friendly quality of downtown. 3) Economic Restructuring: Support existing and attract new downtown
businesses to respond to the current market. Balance business mix and provide amenities for all shoppers. Convert unused space into
productive property. Sharpen the competitiveness of all businesses.
Downtown Happy Valley Retail Market Assessment 2
4) Organization: Establish common goals for downtown’s development, and build and organize consensus and cooperation among
downtown stakeholders.
Project Purpose The purpose of this analysis is to:
♦ Provide an assessment of potential market support for retail uses in the downtown Happy Valley commercial district.
♦ Create a snapshot of Happy Valley’s
retail sector including an overview of consumer preferences, needs and buying patterns; and opportunities and
challenges for growth and development in the downtown.
♦ Provide Main Street Happy Valley with a factual basis for developing
strategies to strengthen and diversify the downtown retail base and
capture more consumer spending. ♦ Recommend business development strategies to strengthen the
downtown retail base.
Project Methodology As downtown Happy Valley’s retail expansion efforts will be implemented
over time, the market analysis considers a ten-year timeframe from 2010 to 2020, which is a realistic projection period for retail development.
Research, both primary and secondary, includes: ♦ Statistical estimates of potential supportable retail space in downtown;
♦ Community-wide surveys of resident/employee shopping preferences; ♦ Interviews with business owners and local government representatives
and ♦ Site visits to Happy Valley and the surrounding area.
This report is organized into the following sections: 1) Retail Market Analysis
2) Consumer Research 3) Conclusions
Downtown Happy Valley Retail Market Assessment 3
Retail Market Analysis
This section outlines Happy Valley’s key retail target markets and provides an estimate of existing and future support of retail space in the Happy Valley market area.
A. TARGET MARKET ANALYSIS Downtown Happy Valley has the potential to serve and attract sales from local residents, area employees and visitors. The market segments that
will serve as the most dependable sources of shoppers on a regular basis – residents and employees – are characterized below.
Local Resident Market Based upon the patronage of existing businesses, downtown Happy Valley’s location within the region, its competitive assets and proposed redevelopment activity, Marketek delineated a custom-drawn market
area, modeled after the Happy Valley school district, as shown on the map below. For comparative purposes, demographic data are also
presented for the City of Happy Valley, the Portland Metropolitan Statistical Area (MSA) and the State of Oregon.
Happy Valley Market Area
Downtown Happy Valley Retail Market Assessment 4
As of 2009, population within the Happy Valley Market Area was estimated at 71,395 persons and 25,033 households (Exhibit 1). Since 2000,
the market area experienced strong population and household growth, with average annual rates of 3.1% and 3.0%, respectively (or an average
of 1,736 additional persons and 593 additional households per year). These rates outpaced those of the MSA and state, but were below those of the City of Happy Valley, which annexed additional land since 2000.
The city added a total of 6,946 persons and 2,200 households over the last nine years.
Over the next five years, growth rates in the market area are projected to slow, although they should still surpass those of the MSA and state. The
market area is expected to reach 78,831 persons and 27,617 households by 2014, an increase of 7,436 persons and 2,584 households over 2009.
Exhibit 1. Demographic Snapshot, 2009
NA = Not Available. Sources: ESRI BIS; Portland State University Population Research Center
Demographic City of Happy Valley Portland State of
Indicator Happy Valley Market Area MSA Oregon
Population
2009 (estimate) 11,465 71,395 2,233,323 3,841,859
2014 (forecast) 13,534 78,831 2,396,625 4,064,906
Avg. Ann. % Change ('00 to '09) 17.08% 3.11% 1.76% 1.37%
Avg. Ann. % Change ('09 to '14) 3.61% 2.08% 1.46% 1.16%
Households
2009 (estimate) 3,631 25,033 857,304 1,495,911
2014 (forecast) 4,295 27,617 919,054 1,584,044
Avg. Ann. % Change ('00 to '09) 17.08% 3.01% 1.67% 1.35%
Avg. Ann. % Change ('09 to '14) 3.66% 2.06% 1.44% 1.18%
Average Household Size 3.16 2.83 2.56 2.51
Median Household Income NA $68,298 $62,166 $53,483
Median Age (Years) NA 35.7 36.3 38.0
Race
Percent White Alone NA 80.5% 81.5% 83.7%
Percent Other Race/2+ Races NA 19.5% 18.5% 16.3%
Percent Hispanic NA 7.1% 10.3% 11.2%
Homeownership NA 71.4% 62.7% 64.0%
Educational Attainment
Associate Degree NA 8.5% 8.0% 7.7%
Associate Degree NA 26.8% 31.5% 27.7%
Downtown Happy Valley Retail Market Assessment 5
Average household size is highest in the city (3.2 persons per household), compared to averages of 2.8 persons in the market area and 2.5 in the
MSA and state. In terms of tenure, market area households are more likely to own their homes than households in other geographies.
Homeownership in the market area is estimated at 71.4% versus 63-64% in the MSA and state.
Median household income in the market area is on par with that of the MSA at $68,298 and $62,166, respectively. Median income within the City
of Happy Valley, however, is estimated at nearly double that of the MSA ($118,118), although an updated figure following the City’s most recent annexation is unavailable.
Age trends are similar in each geography – median ages range from 35.7 years in the market area to 38.0 years statewide. In terms of racial
composition, the majority of the population in all three geographies is white (about 80%). Asians/Pacific Islanders make up 10.3% in the market
area compared to 4.1% statewide. Hispanic persons, in contrast, constitute higher a share of the population at the state level (11.2%) than in the market area (7.1%). Detailed charts characterizing the market area
population are provided in Appendix A.
Employee Market An estimated 1,987 businesses operate within the Happy Valley Market
Area and employ more than 21,500 persons (Exhibit 2). By far, the largest sector is the healthcare industry, which employs 6,169 persons, or 28.5%.
Other service employment makes up 18.3%, followed by retail trade with 14.8%.
Employees working in and near downtown Happy Valley are an
important captive market for retail, service and entertainment business. Research conducted by
the Building Owners and Managers Association of America estimates that office workers spend 10-15% of
their expendable income in and near their places of work. Top
spending categories include restaurants, entertainment, cards and gifts, personal care items and
books and magazines.
Downtown Happy Valley Retail Market Assessment 6
Exhibit 2. Business & Employment, Happy Valley Market Area, 2009
Source: ESRI BIS
B. RETAIL DEMAND POTENTIAL Marketek estimated potential demand for additional retail, restaurant and entertainment space in downtown Happy Valley based on existing and
future market area resident spending. In each case, spending potential by merchandise type was converted to square feet of store space based
on sales per square foot standards derived from the Urban Land Institute’s Dollars and Cents of Shopping Centers.
Resident demand is derived from two sources. The first, “existing demand,” is demand for retail goods by current market area households that is now being met outside the market area. Existing demand is found
by comparing the retail supply (i.e., actual retail sales) with retail demand (i.e., the expected amount spent by market area residents based on
consumer expenditure patterns). When demand outweighs supply, a leakage occurs, indicating that consumers are spending outside of the market area for some retail goods or services. While consumers will always
do a certain amount of shopping away from home, this comparison
Industry # % # %
Agriculture & Mining 40 2.0% 223 1.0%
Construction 338 17.0% 1,450 6.7%
Manufacturing 110 5.5% 1,778 8.2%
Transportation 48 2.4% 551 2.5%
Communication 7 0.4% 67 0.3%
Electric/Gas/Water/Sanitary Services 8 0.4% 47 0.2%
Wholesale Trade 158 8.0% 1,710 7.9%
Retail Trade 301 15.1% 3,195 14.8%
Finance/Insurance/Real Estate 200 10.1% 1,312 6.1%
Services 669 33.7% 10,129 46.8%
Hotels & Lodging 5 0.3% 168 0.8%
Automotive Repair, Services, Parking 58 2.9% 181 0.8%
Motion Picture & Amusements 34 1.7% 139 0.6%
Healthcare 97 4.9% 6,169 28.5%
Legal 8 0.4% 21 0.1%
Education Institutions & Libraries 31 1.6% 1,030 4.8%
Other Services 436 21.9% 2,421 11.2%
Government 23 1.2% 1,148 5.3%
Other 85 4.3% 21 0.1%
Total Employment 1,987 100.0% 21,631 100.0%
Businesses Employees
Downtown Happy Valley Retail Market Assessment 7
provides a reasonable indication of the availability of goods in the local market.
The second source of demand, “future demand,” is demand for retail
goods based on spending patterns and projected household growth within the market area over the next ten years.
Potential demand for new retail space is divided among five merchandise categories: shoppers’ goods, restaurants, entertainment, convenience
goods and personal services. The types of goods and services within these categories are provided in Appendix B.
The results of the demand analysis are depicted in Exhibit 3 on the following page.1 As shown, existing resident demand has the potential to support an additional 1.04 million square feet of retail space in the Happy
Valley Market Area. Potential future resident demand will support 510,043 square feet, for a total of 1.55 million square feet of potential new retail
space in the Market Area through 2020. Detailed analyses for each source of demand are provided in Appendix B.
Exhibit 3. Potential Supportable Retail Space, 2009 to 2020
Source: ESRI BIS; Urban Land Institute; Marketek, Inc.
1 For purposes of determining retail potential by square footage, the general merchandise sales
leakage is redistributed by merchandise type and includes apparel, electronics, home furnishings,
home improvements, personal care and grocery.
Merchandise/ 2009 2010-2015 2015-2020
Service Category Existing Unmet Market Area Market Area
Demand Demand Demand
(SF) (SF) (SF) (SF)
Shoppers Goods
Apparel 165,619 24,734 26,735 217,087
Home Furnishings 146,293 25,231 27,272 198,796
Home Improvement 222,402 28,851 31,185 282,438
Misc. Specialty Retail 151,652 26,778 28,944 207,374
Subtotal 685,966 105,593 114,136 905,695
Convenience Goods
Grocery 116,782 47,456 51,296 215,535
Health/Personal Care 55,306 8,545 9,236 73,087
Subtotal 172,088 56,001 60,532 288,622
Restaurants 183,732 43,973 47,530 275,235
Entertainment NA 17,380 18,786 36,165
Personal Services NA 22,160 23,953 46,113
Total 1,041,787 245,106 264,937 1,551,830
Total Potential
New Retail
Space
Downtown Happy Valley Retail Market Assessment 8
Over half of demand (905,695 square feet or 58%) is for shoppers goods, and 20% (311,401 square feet) is for restaurants and entertainment.
Demand for convenience goods makes up another 19% (or 288,622 square feet).
Downtown Happy Valley Retail Market Assessment 9
Consumer Research
During fall 2009, the Happy Valley community completed an electronic survey retarding shopping needs and preferences. Surveys were posted on the City website and publicized by the city and schools. Results are
highlighted below, with detail available in Appendix C.
Shopper Survey Highlights ♦ Sixty-five (65) people participated in the survey. ♦ Sixty-four percent (64%) reported doing most of their non-grocery
shopping at Clackamas Town Center, followed by Portland (41%). Only 13% of respondents do most of their non-grocery shopping in
Happy Valley. ♦ Reasons most frequently cited for choosing to shop in Happy Valley
are its convenient location (selected by 83% of respondents), the
desire to support local businesses (65%) and the lack of traffic and crowds (46%).
♦ Deterrents to shopping in Happy Valley include: high prices (selected
by 66% of respondents), a poor selection of goods and services (56%) and limited hours (24%).
♦ Merchandise types most frequently thought to be lacking in Happy Valley include women’s casual apparel, garden supplies, shoes, hardware, sporting goods and linens and towels.
♦ Top service needs include day care, a copy center/pack and mail
service, homeopathic/naturopathic medicine and general health care.
♦ Restaurant types desired by respondents include a bakery, family dining, seafood, a brewpub, health/natural food and a
steakhouse/grill.
♦ When asked what image they would like to see Happy Valley develop
for itself, most respondents described a retail district with unique upscale shops and restaurants that serves as a fun, family-friendly
gathering place for residents and visitors.
Downtown Happy Valley Retail Market Assessment 10
Conclusions
Over the next decade, the City of Happy Valley is poised for significant development with numerous major projects planned and underway that will support growth of the commercial core. Among these are: the
expansion of 172nd Avenue to five lanes from Sunnyside to Highway 212, completion of phase one of Providence’s campus at Sunnyside and 162nd,
anticipated development of the Rock Creek Employment Area and the potential Fred Meyer superstore at Sunnyside and 172nd. In addition,
Happy Valley’s commitment to creating a high quality family community is evidenced by its
passage of a $235 million bond measure resulting in the
construction of a new elementary and middle school as well as other facilities.
Happy Valley’s success in capitalizing on retail/service opportunities will be influenced by factors ranging from the availability of development
capital and the resulting quality commercial space to shopping center and community anchors, marketing and incentives. All ‘smart’ shopping
districts or centers strive to offer the marketplace a diversity of quality businesses, including specialty goods, which are so prevalent in today’s consumer market.
The absorption and distribution of retail demand into any marketplace is a highly dynamic and fluid process. Downtown Happy Valley/the Happy
Valley Town Center is competing with multiple strip commercial centers on Sunnyside Road and throughout the market area to capture identified
potential demand. Marketek applied potential capture rates for downtown Happy Valley as follows: 15% of future resident demand and 8% of existing demand. These capture rates translate to potential for
159,849 square feet of new retail space.
The Happy Valley community as a whole has the potential to capture a greater share of retail with an emphasis on convenience goods. Happy Valley’s very close proximity and easy access to Clackamas Town Center
will challenge it to compete for a depth of shopper’s goods in the short term. However, local residents specifically expressed interest in general
merchandiser such as Fred Meyer and Target with moderately-priced goods.
Downtown Happy Valley Retail Market Assessment 11
Paramount among the factors influencing Happy Valley’s future retail
base is continued expansion of its consumer marketplace. Although this seems obvious, the critical link between market size and retail
development cannot be overstated. Developing a strong mix of retail and service establishments requires continued growth in Happy Valley households, employment and traffic to the area.
Strengthening the residential base in and immediately surrounding Happy
Valley will serve as an important catalyst for retail expansion as residents look nearby for day-to-day goods and services, dining and specialty items. Boosting the number of employees in the area by promoting
industrial development also has the potential to jumpstart retail development by offering a built–in consumer market. These are already important elements of Happy Valley’s community and economic vitality
gameplan.
Next steps for putting this retail market research to work as part of the community’s downtown and economic development efforts will be to identify specific business development and marketing strategies
appropriate to Happy Valley’s capacity, resources and commitment to the Main Street program. The outline below serves as a starting point for
this discussion.
BUSINESS DEVELOPMENT & MARKETING STRATEGIES
Primary Program Goals
• Increase local spending by trade area shopper and visitor
target markets
• Retain, strengthen and expand the existing business base in
Happy Valley
• Recruit and encourage businesses that will complement and
improve the existing commercial mix and will enhance the
attractiveness of Happy Valley shopping centers
Program Elements
• Product Readiness
• Business Retention and Expansion
• Business Attraction
• Customer Attraction
Downtown Happy Valley Retail Market Assessment 12
Core Strategies
• Package and promote Happy Valley’s assets and
opportunities for businesses and shoppers
• Encourage, support, and assist existing businesses
• Target new businesses to add to the business mix and
strengthen the overall economic base
• Encourage residents, businesses, visitors, and area employees
to shop in Happy Valley
• Develop a positive Happy Valley image through continuous
public relations, sales and marketing
Downtown Happy Valley Retail Market Assessment 13
Appendix A. Demographic Profile
2000 2009 Number Percent 2014 Number Percent
(Estimate) (Forecast)
City of Happy Valley
Population 4,519 11,465 772 17.08% 13,534 414 3.61%
Households 1,431 3,631 244 17.08% 4,295 133 3.66%
Avg. Household Size 3.16 3.16 0.000 3.15 -0.002
Happy Valley Market Area
Population 55,770 71,395 1,736 3.11% 78,831 1,487 2.08%
Households 19,699 25,033 593 3.01% 27,617 517 2.06%
Avg. Household Size 2.80 2.83 0.003 2.83 0.000
Portland MSA
Population 1,927,881 2,233,323 33,938 1.76% 2,396,625 32,660 1.46%
Households 745,531 857,304 12,419 1.67% 919,054 12,350 1.44%
Avg. Household Size 2.54 2.56 0.002 2.57 0.002
State of Oregon
Population 3,421,399 3,841,859 46,718 1.37% 4,064,906 44,609 1.16%
Households 1,333,723 1,495,911 18,021 1.35% 1,584,044 17,627 1.18%
Avg. Household Size 2.51 2.51 0.000 2.51 0.000
Source: ESRI BIS; Portland State University Population Research Center
Geographic Area
Avg. Ann. Change Avg. Ann. Change
2000-2009 2009-2014
City of Happy Valley, Happy Valley Market Area, Portland MSA and Oregon
2000-2014
POPULATION & HOUSEHOLD GROWTH
Average Annual Population Growth Rates, 2000-2014
0%
5%
10%
15%
20%
City of Happy Valley Happy Valley Market
Area
Portland MSA State of Oregon
2000-2009 Avg. Ann. Change 2009-2014 Avg. Ann. Change
Downtown Happy Valley Retail Market Assessment 14
Income Happy Valley Portland State of
Market Area MSA Oregon
Less than $15,000 6.0% 8.0% 10.6%
$15,000 - $24,999 5.8% 7.4% 9.7%
$25,000 - $34,999 7.1% 8.5% 10.3%
$35,000 - $49,999 13.4% 14.5% 15.6%
$50,000 - $74,999 23.4% 23.6% 22.7%
$75,000 - $99,999 16.2% 15.5% 15.0%
$100,000 - $149,999 17.1% 14.7% 10.2%
$150,000 - $199,999 6.4% 4.1% 3.1%
$200,000 or More 4.6% 3.7% 2.8%
Total 25,033 857,304 1,495,911
Median Household Income $68,298 $62,166 $53,483
Source: ESRI BIS
HOUSEHOLD INCOME
City of Happy Valley, Happy Valley Market Area, Portland MSA and Oregon
2009
0%
5%
10%
15%
20%
25%
Less than
$15,000
$15,000 -
$24,999
$25,000 -
$34,999
$35,000 -
$49,999
$50,000 -
$74,999
$75,000 -
$99,999
$100,000 -
$149,999
$150,000 -
$199,999
$200,000 or
More
Happy Valley Market Area Portland MSA State of Oregon
Household Income Distribution, 2009
Downtown Happy Valley Retail Market Assessment 15
Age Category Happy Valley Portland State of
Market Area MSA Oregon
Under 5 7.4% 7.0% 6.5%
5-14 14.3% 13.2% 12.5%
15-19 6.9% 6.7% 6.8%
20-24 6.4% 6.7% 6.8%
25-34 14.0% 14.6% 13.5%
35-44 13.9% 14.3% 13.2%
45-54 15.6% 14.9% 14.8%
55-64 11.8% 11.7% 12.7%
65-74 5.3% 5.7% 6.8%
75-84 3.1% 3.5% 4.3%
85+ 1.3% 1.7% 2.1%
Total 71,395 2,233,323 3,841,859
Median Age 35.7 36.3 38.0
Source: ESRI BIS
City of Happy Valley, Happy Valley Market Area, Portland MSA and Oregon
2009
POPULATION BY AGE
Age Distribution of the Population, 2009
0%
5%
10%
15%
20%
Under 5 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Happy Valley Market Area Portland MSA State of Oregon
Downtown Happy Valley Retail Market Assessment 16
Race/Ethnicity Happy Valley Portland State of
Market Area MSA Oregon
White Alone 80.5% 81.5% 83.7%
Black Alone 1.6% 2.8% 1.7%
American Indian Alone 0.7% 0.9% 1.3%
Asian/Pacific Islander 10.3% 6.0% 4.1%
Some Other Race Alone 3.2% 5.1% 5.8%
Two or More Races 3.7% 3.7% 3.4%
Hispanic Origin (any race) 7.1% 10.3% 11.2%
Total 71,395 2,233,323 3,841,859
Source: ESRI BIS
City of Happy Valley, Happy Valley Market Area, Portland MSA and Oregon
2009
RACIAL & ETHNIC COMPOSITION
0%
20%
40%
60%
80%
100%
White Alone Black Alone American
Indian Alone
Asian/Pacific
Islander
Some Other
Race Alone
Two or More
Races
Hispanic Origin
(any race)
Happy Valley Market Area Portland MSA State of Oregon
Racial & Ethnic Composition, 2009
Downtown Happy Valley Retail Market Assessment 17
Community Tapestry Segments Recognizing that people who share the same demographic characteristics may have widely divergent interests and shopping preferences, Community Tapestry
data (developed by ESRI Business Information Solutions) categorizes neighborhoods throughout the nation into 65 consumer groups or market segments. Neighborhoods are geographically defined by census blocks, which
are analyzed and sorted by a variety of demographic and socioeconomic characteristics as well as other determinants of consumer behavior.
Market area households have been grouped into Tapestry market segments. The top market segments within the Happy Valley Market Area are identified and
summarized in the chart on the following page.
Downtown Happy Valley Retail Market Assessment 18
% of Hhold Median Median Consumer Preferences &
Hholds Type Age Income Purchases
1Main Street,
USA29.0%
Family
Mix37 $55,144
These fairly well-educated consumers tend to purchase
software, savings certificates, home improvement iterms
and prescription medication. Civic-minded, they often
attend public meetings and work as volunteers.
2 In Style 17.7%
Married
couples
without
children
40 $72,112
Well-educated professional couples who may live in the
suburbs but enjoy the amenities of the city. They travel
frequently for business and pleasure, own mutual funds and
contribute to 401-K accounts. Enjoy dining out and
shopping at stores such as Anne Taylor and Nordstrom.
3 Boomburbs 9.9%
Married
couples
with
children
34 $117,782
Affluent, double income families who live busy, upscale
lifestyles. They focus on home upgrades, furnishings and
landscaping. Leisure time is spent playing golf and tennis
and swimming.
4Suburban
Splendor8.1%
Married
couples41 $129,931
Families in growing neighborhoods who own large,
luxurious homes and hire contractors and maintenance
workers. They devote free time to travel, fitness and trips to
museums or the theater.
5Young and
Restless7.2%
Singles/
Shared
hholds
29 $43,645
These households are young and on the go. Their
purchases center on themselves and include sports gear,
designer clothing and computers and software. Favorite
stores include Banana Republic and Express.
6
Up and
Coming
Families
7.2%
Married
couples
with
children
32 $77,444
These young, affluent families enjoy home improvement
projects and dining out at fast food and family style
restaurants. Other leisure activities include taking their
young children to the zoo or traveling domestically.
7Sophisticated
Squires6.2%
Married
couples38 $85,937
Couples who enjoy cultured country living on the fringe of
urbanized areas. They do their own landscaping and home
improvement projects and play sports and board games.
Prefer to read than watch television.
8 Exurbanites 4.1%Married
couples45 $88,195
Empty nester couples who spend time working in their
garden or decorating their homes. Enjoy domestic wine,
attending the theater and outdoor activities such as
boating and hiking.
9 Green Acres 3.7%Married
couples41 $63,922
Blue collar families w/ children 6-17 living in pastoral
settings. These do-it-yourselfers are not afraid to tackle
home improvement projects and enjoy watching football
and NASCAR and going hunting and hiking.
10 Midland Crowd 3.3%Married
couples37 $49,748
These families reside in rural locations, with nearly 30% living
in mobile homes. They are do-it-yourselfers who may own 3
vehicles and enjoy watching TV, hunting, fishing and pets.
Source: ESRI BIS
Total Households 96.4%
TOP TEN TAPESTRY MARKET SEGMENTS
Happy Valley Market Area
Market Segment
2009
Downtown Happy Valley Retail Market Assessment 19
Appendix B. Retail Demands
Merchandise/Service Types of Goods/Services
Category
Apparel Women's Apparel, Men's Apparel, Children's, Footwear,
Watches & Jewelry
Home Furnishings Furniture, Floor Coverings, Major and Small Appliances,
Household Textiles, Floor Coverings, PC Software and
Hardware, Housewares, Dinnerware, Telephones
Home Improvement Maintenance and Remodeling Materials, Lawn & Garden
Misc. Specialty Retail Pet Care, Books & Periodicals, Sporting Equipment, Toys &
Hobbies, Video Cassettes & Games, TV/VCR/Cameras,
Audio Equipment, Luggage, Eyeglasses
Groceries Food at Home, Nonalcoholic Beverages at Home,
Alcoholic Beverages, Smoking Products
Restaurants Food Away From Home, Alcoholic Beverages
Entertainment Admission to Movie/Theater/Opera/Ballet, Recreational
Lessons, Participation in Clubs
Personal Services Shoe Repair, Video Rental, Laundry & Dry Cleaning,
Alterations, Clothing Rental & Storage, Watch & Jewelry
Repair, Photo Processing & Supplies, Child Care
SUMMARY OF MERCHANDISE AND SERVICE CATEGORIES
Downtown Happy Valley Retail Market Assessment 20
Demand/
Spending Supply/ Leakage
Potential Retail Sales (or Surplus)
Shoppers Goods
Apparel $24,980,940 $8,956,269 $16,024,671
Home Furnishings $23,223,259 $4,820,701 $18,402,558
Electronics & Appliances $21,899,224 $1,779,179 $20,120,045
Home Improvement & Gardening $29,611,114 $5,518,330 $24,092,784
Sporting Goods, Hobbies, Books & Music $10,669,673 $2,208,010 $8,461,663
General Merchandise $131,039,428 $33,892,597 $97,146,831
Miscellaneous Specialty Retail
(florist, office supplies, gift stores, etc.)
Convenience Goods
Grocery $129,647,857 $120,851,999 $8,795,858
Health & Personal Care $19,502,296 $7,246,813 $12,255,483
Restaurants $115,326,332 $67,004,733 $48,321,599
Total Leakage $261,793,287
Source: ESRI BIS; Marketek, Inc.
Merchandise Category
$12,639,798 $4,468,003 $8,171,795
EXISTING RETAIL BALANCE
Happy Valley Market Area
2009
Downtown Happy Valley Retail Market Assessment 21
Per Target
Merchandise or Household Sales Sales Space Sales Space Sales Space
Service Category Expenditure ($/SF)* (in mil $) (SF) (in mil $) (SF) (in mil $) (SF)
Apparel $1,960 $209 $50.1 239,612 $55.2 264,346 $60.8 291,080
Home Furnishings $1,904 $199 $48.6 244,428 $53.7 269,659 $59.1 296,931
Home Improvement $1,532 $140 $39.1 279,499 $43.2 308,350 $47.5 339,535
Misc. Specialty Retail $2,193 $216 $56.0 259,413 $61.8 286,191 $68.1 315,135
Shoppers Goods $193.9 1,022,952 $213.9 1,128,545 $235.5 1,242,681
Grocery $7,018 $390 $179.3 459,743 $197.8 507,199 $217.8 558,495
Health/Personal Care $1,183 $365 $30.2 82,779 $33.3 91,324 $36.7 100,560
Convenience Goods $209.5 542,522 $231.1 598,523 $254.5 659,056
Restaurants $4,385 $263 $112.0 425,993 $123.6 469,966 $136.1 517,496
Entertainment $593 $90 $15.2 168,368 $16.7 185,747 $18.4 204,533
Personal Services $1,269 $151 $32.4 214,677 $35.8 236,837 $39.4 260,790
Total $563.0 2,374,512 $621.1 2,619,618 $683.9 2,884,556
Five Year Net Gain $58.1 245,106 $62.8 264,937
* Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers."
Sources: ESRI BIS; Urban Land Institute; Marketek, Inc.
2020
Retail Potential Retail Potential
2010 2015
Retail Potential
RETAIL EXPENDITURE POTENTIAL
2010-2020
Happy Valley Market Area
Downtown Happy Valley Retail Market Assessment 22
Merchandise or Service Category/Business Median National Local Chain Independent
Specialty Retail
Appliances 5,956 6,292 5,911 ~
Art Gallery 1,802 ~ 1,802 1,907
Beauty Supplies 1,807 1,634 2,450 1,829
Bike Shop 3,440 ~ ~ 2,596
Bookstore 10,093 23,000 9,990 2,740
Cameras 2,000 2,000 ~ ~
Children's Wear 3,913 4,879 3,054 2,105
Family Shoe Store 4,000 4,113 5,100 2,460
Family Wear 8,000 8,500 3,474 5,132
Gift/Cards 4,200 4,900 3,780 1,653
Hardware 13,200 13,900 ~ ~
Home Accessories 7,595 10,215 5,365 2,462
Jewelry 1,500 1,610 1,968 1,200
Luggage 2,500 2,499 ~ ~
Men's Clothing Store 3,500 4,319 3,065 2,750
Pet Supplies 7,995 17,600 3,201 3,200
Record/Tapes 4,464 6,178 ~ 2,017
Sporting Goods 8,465 22,000 4,980 2,995
Toys 7,855 12,000 ~ 3,344
Women's Ready to Wear 4,400 4,503 3,960 2,145
Convenience
Drugstore/Pharmacy 10,920 10,860 16,668 4,977
Supermarket 50,420 49,071 51,495 23,300
Bakery 1,990 4,000 ~ 1,700
Gourmet Grocery 18,000 ~ ~ ~
Wine/Liquor 3,440 ~ 6,237 2,920
Personal Services
Day Spa 2,875 ~ 2,563 3,060
Women's Hair Salon 1,400 1,450 1,250 1,361
Nail Salon 1,200 ~ 1,200 1,200
Health Club 10,249 9,548 5,508 10,249
Mail/Packaging/Photocopying 1,278 1,240 ~ 1,236
Tailor/Alteration 950 ~ 900 1,035
Video Rental 6,000 6,333 4,240 4,733
Drycleaners 1,800 ~ 1,800 1,649
Day Care 4,000 ~ ~ 3,901
Laundry 2,114 ~ 2,150 1,955
Restaurants
Restaurant with Liquor 5,204 6,669 5,600 3,362
Restaurant without Liquor 3,581 6,500 3,025 2,625
Bar/Cocktail Lounge 3,821 ~ ~ 3,821
Ice Cream Parlor 1,137 1,144 1,137 1,116
Coffee/Tea 1,578 1,650 1,624 1,400
Entertainment - Cinema 35,022 37,161 35,022 21,250
Source: Urban Land Institute, "Dollars and Cents of Shopping Centers"
TYPICAL SIZE OF SELECTED BUSINESSES
Downtown Happy Valley Retail Market Assessment 23
Appendix C. Shopper Survey Results
Section 1: Shopping & Services in Happy Valley
1. Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? (Select up to two.) (61 respondents)
� More respondents do most of their non-grocery shopping at Clackamas Town Center
than any other shopping destination (63.9%).
� Portland is the next most popular shopping destination (41.0%). Only eight
respondents shop in Happy Valley (13.1%).
� Of the 20 respondents who chose “other,” most listed specific stores, including Fred
Meyer, Target and Walmart.
2. What kinds of HOUSEHOLD GOODS do you think we are missing or need more of in
Happy Valley? (Check all that apply.) (52 respondents)
� Garden supplies are
the most commonly
listed household
good, selected by
53.8% of respondents.
� Hardware and linens
& towels follow,
chosen by 42.3% and
36.5% of respondents,
respectively.
0 5 10 15 20 25 30 35 40
Other
Internet
Portland
Clackamas Town Center
Happy Valley
Number of Responses
0 5 10 15 20 25 30
Other
Kitchen & Tabletop
Hardware
Building Supplies
Lighting
Garden Supplies
Linens & Towels
Appliances
Furniture
Number of Responses
Downtown Happy Valley Retail Market Assessment 24
3. What kinds of APPAREL do you think we are missing or need more of in Happy Valley? (Check all that apply.) (42 respondents)
� The majority of respondents
suggested that women’s
casual apparel (66.7%) and
shoes (57.1%) are needed
in Happy Valley.
� Other popular responses
include children’s and
infants’ clothing (42.9%)
and apparel for
teen/young adults (40.5%).
� Four of the respondents
who selected “other” listed
outdoor and fitness
apparel.
4. What types of SPECIALTY MERCHANDISE do you think we are missing or need more of in Happy Valley? (Check all that apply.) (54 respondents)
� The most requested specialty goods include books (selected by 40.7% of
respondents), sporting goods (37.0%) and gifts and cards (29.6%).
0 5 10 15 20 25 30
Other
Jewelry
Shoes
Teen/Young Adult
Children & Infants
Men's Specialty
Men's Business
Men's Casual
Women's Specialty
Women's Business
Women's Casual
Number of Responses
0 5 10 15 20 25
Other
Toys & Hobbies
Consignment/Used
Music & CDs
Electronics
Fabric/Sewing/Yarn Supplies
Sporting Goods
Pet Supplies
Gifts & Cards
Auto Supplies
Art Galleries
Computers & Accessories
Crafts/Handmade Items
Cameras & Supplies
Books
Beauty Supplies
Art & Craft Supplies
Antiques
Number of Responses
Downtown Happy Valley Retail Market Assessment 25
5. What kinds of CONVENEINCE MERCHANDISE and PERSONAL SERVICES do you think we are missing or need more of in Happy Valley? (Check all that apply.) (38 respondents)
� No category was selected by a majority of respondents, but the most popular
responses were a grocery store (31.6%) and a pharmacy (28.9%).
� Respondents who selected “other” listed a bakery, ice cream shop, post office and
florist.
6. What kinds of GENERAL SERVICES do you think we are missing or need more of in Happy Valley? (Check all that apply.) (39 respondents)
� A day care and a copy center/pack & mail location were selected by the same
number of respondents (12 or 30.8%). One-hour photo development was the third
most popular response (23.1%).
� In the “other” category, responses included a post office, a dog boarding service
and a credit union.
0 3 6 9 12 15
Other
DVD/Video Rental
Barber/Salon/Beauty
Tailoring/Alterations
Dry Cleaning/Laundry
Pharmacy
Groceries
Number of Responses
0 5 10 15 20
Other
Insurance
Accounting
Legal
Banking
1-Hour Photo Development
Copy Center/Pack & Mail
Day Care
Computer Training
Computer Repair
Appliance Repair
Number of Responses
Downtown Happy Valley Retail Market Assessment 26
7. What HEALTH SERVICES do you think we are missing or need more of in Happy Valley? (Check all that apply.) (30 respondents)
� The most requested
health service in
Happy Valley is
homeopathic/
naturopathic care
(40.0%), followed by
general health care
(36.7%).
8. In your opinion, what types of RESTAURANTS AND CUISINES do you think we are
missing or need more of in Happy Valley? (Check all that apply.) (61 respondents) � The most popular restaurant types/cuisines were a bakery (54.1%), family dining
(41.0%), seafood (41.0%), a brewpub (39.3%) and healthy/natural food (36.1%).
� Suggestions listed in the “other” category include Thai, Chinese, Mexican, Indian,
Mediterranean and Southern cuisine. Respondents also noted the desire for upscale,
non-chain restaurants that use local ingredients. Additional suggestions include an
ice cream shop, breakfast places and bistros.
0 3 6 9 12 15
Other
General Health Care
Pediatric Care
Vision Care
Hospice
Homeopathic/Naturopathic
Dental
Chiropractic
Number of Responses
0 5 10 15 20 25 30 35
Other
Ethnic Cuisines
Tea Room
Wine Bar
Fine Dining
Dinner Theater
Steakhouse/Grill
Pizza/Italian
Deli
Healthy/Natural
Brewpub
Seafood
Fast Food
Dessert Bar
Coffee House
Family
Bakery
Number of Responses
Downtown Happy Valley Retail Market Assessment 27
9. What kinds of LEISURE/ENTERTAINMENT activities do you think we are missing or need more of in Happy Valley? (Check all that apply.) (53 responses)
� Almost half of respondents think that Happy Valley needs more children’s recreation
(49.1%). Other top responses include live music/piano bar (37.7%) and indoor
recreation (30.2%).
� Those who responded under “other” suggested a family-oriented activity center, a
pool, bike and walking trails, ice skating and indoor soccer and golf.
10. Some of the above merchandise and services may be available locally. Please
explain why you may not be buying these products or services in Happy Valley if you are aware of them. (25 respondents)
� The most common reason for not shopping locally was higher prices, mentioned by
nine respondents. Other reasons included quality, specifically of restaurants and the
grocery store, and the convenience of driving to a shopping location where they
can purchase all the items they need in one trip.
� “Most Happy Valley businesses are small and thus have much higher prices than
those just a few miles away. Most of us who live here are used to driving further, and
the local businesses have to be competitively priced in order to win our loyalty.”
� “We need to have more sidewalks and less sprawl. You have to drive to get to
everything, so why not go to Portland?”
� “We go to other districts to dine out because we want a more intimate atmosphere
with good, local, northwest food. The restaurants here are mostly chains and too kid
friendly.”
0 5 10 15 20 25 30
Other
Indoor Recreation
Outdoor Recreation
Riverboat Cruises
Children's Recreation
Bowling
Live Music/Piano Bar
Movie Theater
Art Galleries
Live Theater
Exercise Studio/Gym
Number of Responses
Downtown Happy Valley Retail Market Assessment 28
Section 2: Shopping & Business Preferences in Happy Valley
11. What are the best times for you to shop? (Please pick the top 3.) (58 respondents) � Respondents prefer to
shop weekdays after
5:00 PM (51.7%) or
Saturday afternoon
(41.4%).
12. Currently, what are the major ADVANTAGES of shopping or doing personal errands in
Happy Valley? (Please check the top 3.) (57 respondents)
� The majority of respondents cite the convenient location as the primary advantage
of shopping in Happy Valley (82.5%). This is followed by a desire to support local
businesses (64.9%).
0 10 20 30 40
Other
Sunday afternoon
Sunday morning
Saturday afternon
Saturday morning
Weekdays after 5:00 PM
Weekdays 8:30 AM to 5:00 PM
Number of Responses
0 10 20 30 40 50
Other
Know the store owners or employees
Selection of goods/services
Within walking distance
Less traffic & crowds
Support local businesses
Easy to find parking
Friendly service
Fair prices
Convenient location
Number of Responses
Downtown Happy Valley Retail Market Assessment 29
13. Currently, what are the major DISADVANTAGES of shopping or doing personal errands in Happy Valley? (Please check the top 3.) (50 respondents)
� High prices were the number one factor respondents cited as a disadvantage to
shopping in Happy Valley (66.0%). A majority of respondents also noted a poor
selection of goods and services (56.0%).
Section 3: General Information
14. What identity or image would you like to see Happy Valley develop for itself as a unique business, shopping, and entertainment district? (39 respondents)
� Most respondents described a retail district with unique upscale shops and
restaurants that serves as a fun, family-friendly gathering place for residents and
visitors. Several respondents noted wanting a downtown similar to Happy Valley’s
town center.
� “I would like Happy Valley to be a place that you go to because it’s unique and
features local artists and vendors. A place with a strong sense of community and not
just another strip mall.”
� “A small town with unique businesses, including restaurants. No more fast food. A
healthy, active community with recreational opportunities or all ages.”
� “A beautifully built shopping area surrounded by unique stores, cool restaurants with
outdoor seating, a local ice cream shop. A place where people want to come to
visit and shop because it offers a unique quality and is visually pleasing.”
15. What changes or improvements would you like to see in Happy Valley to make it more attractive to shoppers? (35 respondents)
� The most common response was more shopping and restaurant variety, noted by ten
respondents.
0 5 10 15 20 25 30 35
Other
Inconvenient location
Lack of access to public transportation
Unfriendly/poor service
Traffic
Limited hours
Lack of parking
High prices
Poor selection of goods/services
Poor appearance
Number of Responses
Downtown Happy Valley Retail Market Assessment 30
� Respondents also mentioned lower prices and higher quality goods, the need for a
community gathering place and for increased walkability.
16. Please check your age. (60 respondents) � More than a third of respondents (36.7%) are between the ages of 45 and 54.
� A quarter (25.0%) are between 35 and 44 years old.
17. Please tell us your home zip code. (60 respondents)
� The vast majority of respondents reside in the 97086 zip code (91.7%). Other zip
codes represented include 97022, 97015, 97266 and 97206.
18. Please let us know where you live and work. (57 respondents) � Most respondents live in Happy Valley but work elsewhere (54.4%). A fifth (21.1%)
both live and work in Happy Valley.
0 5 10 15 20 25
65-74
55-64
45-54
35-44
25-34
19-24
14-18
Number of Responses
0 10 20 30 40
Other
Work in Happy Valley
Live and work in Happy Valley
Live in Happy Valey but do not work
outside the home
Live in Happy Valley but work elsewhere
Number of Responses
Downtown Happy Valley Retail Market Assessment 31
19. Please share any other comments below. (29 respondents)
� “I very much enjoy living in Happy Valley. It’s encouraging to see new businesses
move in, such as New Seasons. We need more culture such as live music, theater, art
galleries and more dining options.”
� “Happy Valley seems to be searching for an identity. Having a city center would
benefit the image and provide alternatives for people shopping elsewhere.”
� “We need restaurants that offer healthy choices for our families. We don’t need to
be another cookie cutter town with the same restaurant and shopping as every other
developing area.”
� “I would love to be able to walk to a coffee shop or book store. We live a healthy
active lifestyle and would like to see businesses that support this.”
� “I would like to see more community gardens spaces to share food with the local
food bank partner.”