KINGSPORT – An extensive retail market study of the Kingsport area indicates that Kingsport is rapidly recapturing market share once lost to other regions.
The study, by Maryland-based Basile Baumann Prost & Associates, indicates that by 2009, when the full effect of the Kingsport Pavilion, Reedy Creek Place and new Lowes are realized, Kingsport will recapture $119.3 million in leaking retail sales.
In 2006, Kingsport faced an unmet trade demand of $587.9 million, and failed to capture its market base in seven of 10 retail categories.
By 2009, modeling the impact of retail development now underway, Kingsport will have closed the retail market gap to $468.5 million.
In addition, consultant Richard Basile noted that Kingsport will not only recapture its natural market base in five of 10 categories, but will actually begin drawing shoppers from outside the region in a major way for retail categories including electronics, building materials, clothing, sporting goods, books, music and miscellaneous retail.
"This clearly shows Kingsport is making quick progress in recapturing our market base," City Manager John Campbell said.
"Strategic investments in the community by the Board of Mayor and Aldermen, a strong economic base and a renewal in the greater Kingsport housing sector, as well as market conditions, are all paying off for Kingsport area residents."
In total, by 2009, Kingsport will capture 64 percent of the total trade area retail demand, Assistant City Manager Jeff Fleming said. The five hottest sectors that are drawing new consumers from beyond the trade area are also inducing new retailers to take another look at Kingsport.
"This is great news, and yet another indication that Kingsport is clearly on the move," Fleming said. "But we clearly have some recruiting left to do, particularly in the areas of home furnishings, food and beverage stores, health and person care, general merchandise and restaurants. These are the areas where we are still behind in terms of capturing the full market share."
The market trade area was generally defined as western Sullivan County, portions of Southwest Virginia and Southeastern Kentucky, Hawkins County and to the intersection Interstate 81 and Interstate 26.
After a strong 2006 building season with $88.5 million in new investment, 2007 is on a record pace, with the month of May alone accounting for $22.7 million in new investment across the residential, professional office, retail and industrial sectors.
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