Retail Trade Area Analysis Hillsboro North Dakota

This report is intended to provide an indepth trade area analysis of Hillsboro, North Dakota. Specific analyses included determining Hillsboro's main and greater trade areas, identifying the demographic profile of Hillsboro shoppers, examining important and less important services for patron shoppers of Hillsboro, identifying neighboring cities that area shoppers patronize, determining distances area shoppers traveled to Hillsboro, and listing popular newspapers and radio stations among area residents. Current trade area information for Hillsboro was obtained from a statewide trade area survey conducted by the Department of Agricultural Economics at North Dakota State University in 1989. Recent trends (1980 to 1989) in Hillsboro population, retail sales, per capita income, pull factors, and Traill County population and employment were identified and discussed. Hillsboro's population, trade area population, and retail sales, along with Traill County population, average annual employment, and per capita income have all decreased throughout the 1980s. Although most demographic and economic measurements have decreased, Hillsboro has fared better than other North Dakota cities with similar population, and has fared favorably compared to smaller competing trade centers. The economic situation round in Hillsboro and Traill County are somewhat typical of the problems round in rural North Dakota communities in the 1980s. Hillsboro's trade areas were broken down into main and greater trade areas. A main trade area (MTA) was defined as an area where the majority of township residents purchase a majority of selected goods and services in one city. A greater trade area (GTA) was defined as the area beyond the MTA where some township residents purchase some selected goods and services in one city. Hillsboro's MTA increased in size by one township, compared to MTA boundaries determined in 1971. The typical household for survey respondents appears to be a middle-aged married couple, who have completed high school, have few children at home, are primarily employed in agriculture and professional/technical professions, and have resided in the area a large portion of their lives. Main trade area residents traveled an average of 8.0 miles to Hillsboro to purchase selected convenience and specialty goods and services. Nearly half (46.2 percent) of the respondents who purchased 50 percent or more or convenience and specialty goods in Hillsboro traveled between 6 to 10 miles to purchase the item. Hillsboro appears to be an important source or goods and services for those who shop in Hillsboro; however, Hillsboro could capture much more of the available market for over half or the nonagricultural and three-fourths of the agricultural goods and services included in the survey questionnaire. Hillsboro’s location between Grand Forks and Fargo hinders its ability to capture more of their potential market. Fargo, Grand Forks, Mayville-Portland, Buxton, and Halstad, MN, were the most popular cities for the purchase of nonagricultural goods and services by Hillsboro MTA residents who did not purchase a majority of the good or service in Hillsboro. Hunter, Mayville, Grandin, and Buxton were popular for purchasing agricultural goods and services. Outshopping analysis revealed no substantial demographic or socioeconomic differences between Hillsboro MTA residents purchasing 50 percent or more and those purchasing less than 50 percent of selected goods and services in Hillsboro. Slight differences between groups were evident only in miles traveled. The Forum (Fargo) was the most popular daily newspaper for both Hillsboro MTA and GTA residents. The Hillsboro Banner and Traill County Tribune were the most popular weekly newspapers for Hillsboro MTA and GTA residents, respectively. The most popular radio stations for Hillsboro MTA residents included KFGO of Fargo and WDAY of Fargo. Although economic times have been difficult, Hillsboro has survived the 1980s in relatively good shape and should remain an important trade center for residents of Traill County and the surrounding area.