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FILLING IN THE GAPS TO RETAIL SITE SELECTION WITHIN MARKETS LOCATED ALONG THE U.S. MEXICO BORDER HIDDEN CONSUMERS.

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Presentation on theme: "FILLING IN THE GAPS TO RETAIL SITE SELECTION WITHIN MARKETS LOCATED ALONG THE U.S. MEXICO BORDER HIDDEN CONSUMERS."— Presentation transcript:

1 FILLING IN THE GAPS TO RETAIL SITE SELECTION WITHIN MARKETS LOCATED ALONG THE U.S. MEXICO BORDER HIDDEN CONSUMERS

2 TRUE MARKET UNDERSTANDING How to Re-define and Re-Evaluate the Various Measures & Tools Used for Assessing Expansion within these Markets. Understanding the Impact of the Cash Based Economy, the Hispanic Market & Mexican National Consumer, and the Untapped Opportunities that Deliver Confidence, Continued Success and Expansion Border Crossers are commuters, tourists, and consumers…..

3 Effectively quantifying the economic impact that these consumers have on these regional economies can be a challenge. U.S. – Mexico Border is the most frequently crossed international boundary in the world 45 U.S. – Mexico Border Crossings with 330 Ports of Entry = 350 million northbound crossings annually – Estimated 665,000 people crossing daily (Customs & Border Protection 2016)

4 LIVE, PLAY, WORK, SHOP, VISIT IMPACT OF CROSS BORDER SHOPPERS ALONG THE BORDER

5 EXAMPLES UTILIZED TO ASSES THESE CROSS-BORDER MARKETS License plate studies Consumer Analytic Tools Special zip codes @ point-of-sale for non- U.S. Residents Surveys @ various points: Radio & TV media consumption, Retailers, Consumers, Point of Sale, Bridge Crossings, Visitor Centers (Nielsen, Universities, Financial Lenders, Marketing & Advertising firms) “Manifiestos” -- TX Sales Tax Refunds

6 CHARACTERISTICS OF CROSS-BORDER SHOPPERS Very high level of brand loyalty Very price, service, and quality conscious Very favorable views of U.S. products – range of merchandise, atmosphere Multi – Generational Shopper & Shops as a Group/Family Young Demographic – Median Age 31 years old – Tech Savvy

7 SNAPSHOT OF CHARACTERISTICS OF CROSS-BORDER ECONOMIES Dual – Households (Mexico & U.S.) & Higher Disposable Incomes due to + Working Adults Young Demographics & Growing Families Peso Exchange Rate Fluctuation Industry Linkages on both sides (Distribution, Logistics) Unbanked/Underbanked Consumers Shopping & Dining Out – Busy 24-7 Mexican National & American Customer Habits Bilingual Workforce & International Base

8 CROSS-BORDER RETAIL SPENDING IN THE U.S. Euromonitor 2012 – Mexican Nationals using VISA cards represents 29% of their total spending in the U.S. 49% of their spending was conducted in cash 31% using credit cards 16% using debit cards 3% using travelers checks Euromonitor & Saber Research Institute 2012-2013

9 SIGNIFICANT ECONOMIC IMPACTS Source: www.crossborderbusiness.com

10 Cross the border for a variety of reasons: Visiting Family & Friends Shopping – Estimated $140 to $170 daily per trip Work – Example -- Manufacturing Industry Getting medical attention Attending U.S. schools Average Bridge Wait Times– 45 Minutes EZ Pass, SENTRI (Secure Electronic Network for Travelers Rapid Inspection) – Frequent pre- approved border crossing traveler SIGNIFICANT ECONOMIC IMPACTS Source: Crossborder Business.com

11 Cross Border Business Associates: Estimates 18-20 million Mexicans cross the border into the U.S. every month Representing $25-30 million in daily retail sales along the border region during normal times of the year This equates to about $10 billion dollars annually, but does not include capital expenditures SIGNIFICANT ECONOMIC IMPACTS Source: Crossborder Business.com

12 CROSS- BORDER TRAVEL MADE EASY Gateway between San Diego & Tijuana International Airport 390-foot enclosed Pedestrian Skybridge Estimated 2 million+ U.S. Passengers fly out of Tijuana annually Tijuana serves 34 cities in Mexico plus Shanghai and Tokyo.

13 EL PASO – JUAREZ ECONOMY 2.5 Million People + within a 50-Mile Radius 20 Million+ Northbound Border Crossings Estimated Impact in El Paso on Retail Sales & Traffic Contribute Approx. $2 Billion+ in Retail Sales/Year (Cross-Border Shopper) Estimated 30%+ of Retailers state their traffic is from Cross-Border Shoppers

14 DELIVERING CONFIDENCE & CONTINUED EXPANSION “It’s such an incredible opportunity for Whole Foods because everything going on in El Paso right now from a growth perspective is exhilarating,” Heather Larrabee, Whole Foods Marketing Coordinator 2 nd Sprouts Farmers Market Opened in El Paso Feb. 2016 – Ted Frumkin, Sprouts chief development officer, said the “ West El Paso store is one of the top- performing stores in the rapidly growing, 222- store chain. El Paso could be a three-to four-store market.”

15 Mesa & Pitt Opening Fall 2016: Ground: 45,000 SF Balcony: 2,000 SF Mezzanine: 3,000 SF 28,700 SF Retail 4,500 SF Restaurant 12,000 SF Office

16 Understanding the Untapped Opportunities that Deliver Confidence, Continued Success and Expansion Along the U.S. –Mexico Cross-Border Markets  Filling in the gaps to your site selection process….  Taking into account the neighbors next door….  Critical indicators like educational attainment and income are important – but these may not always fit within markets such as these… Once you pull the trigger to expand… Delivering, maintaining and continuously improving your store’s SERVICE, QUALITY, & EXPERIENCE

17 THANK YOU & MUCHAS GRACIAS


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