Survey

shows

shopping

habits

New Ulm

residents spend 47 percent of

retail dollars

outside of town

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- New Ulm residents are spending approximately 47 percent of their retail dollars outside of town, according to survey results released Wednesday.

Nearly 16 percent of New Ulm residents say they spend 75-100 percent of their retail dollars in other towns, most often in Mankato.

The study -- conducted by Service Core of Retired Executives (SCORE), the New Ulm Chamber of Commerce and The Journal -- was taken in early August.

While the survey is not a scientific study, the comments from about 240 questionnaires give local economic officials an idea of why people shop elsewhere and what is needed to keep consumers in town.

The results did not surprise Ken Fischer, chairman of the New Ulm SCORE chapter.

"It's what we knew," said Fischer. "But we had to prove it to a developer."

Fischer and Brian Tohal, director of the New Ulm Economic Development Corporation, hope to use the findings that show a need for certain businesses in New Ulm to draw a developer to build a strip mall.

"If we got a good strip mall, we'd really do well out west," Fischer said, referring to New Ulm's ability to draw shoppers from communities west of town.

"A lot of this money is going to Mankato. Why can't we keep that money here?" Fischer said.

A strip mall could be built in a high traffic area allowing quicker access, Tohal said.

"It's a different kind of shopping experience," he said. "It is more of a convenient shopping trip."

Tohal has already shared the survey results with area developers. He plans to ship the results to other developers in the near future to generate some interest.

"We're able to provide information to developers about New Ulm and the trade area," Tohal said.

The results did not show that New Ulm residents prefer strip malls to free-standing stores. Each response generated about 33 percent, while one-third of respondents didn't answer that question.

Two separate studies were done simultaneously; one questionnaire went to business owners while the other questionnaire was published in the newspaper, allowing anyone to respond the 10-question form. Each questionnaire generated approximately 100 responses.

The results overwhelmingly show that consumers head to Mankato for variety (85 percent), while lower prices are a distant response (15 percent).

A sizable number of responses blamed the high cost of gasoline in New Ulm as a reason to shop elsewhere. Respondents also said Mankato clerks are friendlier than their New Ulm counterparts.

Still other questionnaires stated that a shopping trip to Mankato is like a mini-vacation for a family and an excuse to get out of town.

When asked what retail businesses are needed here, respondents from the newspaper questionnaire placed clothing stores (47 percent) at the top of the list, followed by more craft supply stores (9 percent) and discount outlet stores (5 percent.)

The respondents also believe that another family/sit-down restaurant would be a benefit to New Ulm. Others said New Ulm needs more late night food options, more movie choices, a book store, another video store and a toy shop.

New Ulm needs more entertainment options, like a water/amusement park and a public golf course, to draw more shoppers to town, respondents said.

Other responses said New Ulm stores rely too heavily on tourism at the expense of town residents.

"We attract shoppers looking for 'unique, ' but are we keeping those who live in town?" asked one response. "Speciality type store shopping is fun for visitors but is limiting for those who live here."

Fischer said the responses gave him a good idea of what the community wants and needs.

"I want to find out, yes or no, if New Ulm can expand or if we will forever be a bedroom community," Fischer said.

The survey results were compiled by two separate groups, with similar reports coming from both organizations. Two Minnesota State University, Mankato sociology graduate students did one analysis. The other results came from a SCORE office in the Twin Cities.

People interested in obtaining a copy of the study can contact Tohal at (507) 233-4305.