Business Retention and Expansion Study for Collingwood's
Commercial/Retail Base Sector

Final Report - January 2008

Section 1: Introduction
Section 2: Overall Findings

Executive Summary

The Economic Development Office conducted a one to one Commercial/Retail based Business Retention and Expansion survey (BR+E) from late June to early August 2007. Close to 300 local businesses were randomly selected and approached, with 69 agreeing to complete the self-administered survey. The majority (57%) were small Commercial/Retail businesses with both full-time and seasonal workers and having less than 10 employees. Another 19% employed 10 to 19 employees, 11% had 20 to 99 employees, with the remaining 13% having more than 100 employees.

Fifteen percent had been in operation for less than 5 years; 9% for 5-10 years and the remaining 76% for over 10 years. All respondents indicated their involvement in their businesses on a day-to-day basis, with more than 22% being family owned.

Also consider the following findings. Collingwood is the only location for more than 56% of the sampled Commercial/Retail based businesses, with a significant majority of the respondents being satisfied with their location within the community. Additionally 89% of businesses hoping to expand within three years, will do so in Collingwood. The remaining 11% indicated inadequate space, limitations for expansion, as well as labour availability and low profitability as reasons for relocation outside of Collingwood.

While the Commercial/Retail business operators plan to expand, they consistently identify concerns and barriers to future growth, including the challenges of retaining a local labour force, and the need to resolve existing municipal red tape that presently hinders growth of their respective operation. Moreover, a high percentage of respondents support a review of the existing by-laws controlling use of retail space, arguing the by-laws appear to be subjectively interpreted and also hinder retailers.

According to the Commercial/Retail Sector:

• Bureaucracy at the municipal level was cited as a barrier to growth;

• Only 42% of respondents own their own location;

• 39% of respondents to the Commercial/Retail sector identified gross sales in excess of $500,000 annually, with 27% being in excess of $1,000,000.

• Of the 72% respondents who provided salary information, more than $6,250,000 is generated back into the community through employment annually. Another $3,500,000 is returned to the local economy each year for locally purchased goods and services.

Overall, the Commercial/Retail base sector identified that of the 34 businesses who plan to locally grow their business within the next three years, there will be a;

• 67% increase of their workforce

• 67% increase in their retail space

• 83% increase in inventory

• 67% increase in additional products

In conclusion, the businesses surveyed represented 23% of the 300+ retail businesses operating within Collingwood. Despite the additional 45 businesses who provided basic information on their retail space and staffing, the numbers are too small to be statistically valid. Thus, the results should be considered as indicators and not exact measures.

Forward

One of the most important activities undertaken by the Office of Economic Development is its support for local businesses and identification of any immediate issues affecting their success. We are motivated to improve the local business climate and to broaden the discourse on economic development policies and procedures in order to, identify problems that could cause employers to leave a community; identify opportunities to help companies expand their presence in the community; and build and strengthen relationships with individual employers.

To meet these goals, it was in the fall of 2006, that the Office of Economic Development began connecting with business sectors within Collingwood through the Business Expansion and Retention (BR+E) programme in order to identify their concerns and immediate issues affecting the sustainability and growth of their businesses.

In our continued efforts to create an environment for businesses to succeed and the community to prosper the Manufacturing and Knowledge Base and Commercial/Retail sectors have been completed through confidential surveys and one to one interviews.

Similar to the Manufacturing and Knowledge Base Sectors, the Commercial/Retail sector have had the opportunity to express their opinions, strengths, and concerns directly to the Town, and then conveyed to the Province.

Additionally, our findings within the Commercial/Retail Sector will be valuable when applied to the upcoming municipal branding and marketing strategy, and to the commercial study currently being developed.

Acknowledgements

The Town of Collingwood Business Retention and Expansion Survey for the Commercial/Retail sector was conducted through the joint sponsorship and financial support provided from:

• The Town of Collingwood

• The Province of Ontario, Ministry of Agriculture, Food and Rural Affairs, Rural Investments Branch, Rural Development Division.

This initiative would not have been possible without the support each Commercial/Retail owner/operator has provided. Their assistance is greatly appreciated.