Palos conducting study on consumers' habits

City seeks to learn best use of its biz districts

By Matthew Piechalak

Palos Hills has hired a company to conduct a consumer analysis study that city officials believe will help them better understand how to develop two important retail areas in town.

The city recently secured a $30,000 state grant through the Illinois Department of Commerce and Economic Opportunity (DCEO) that will fund the entire cost of the study, which will focus on vacant retail properties on Harlem Avenue, southwest of 103rd Street and 111th Street, west of Roberts Road.

Buxton was employed to conduct the study this month and the data should be ready for analysis in about 60 days, said Alderman William Hanson (3rd Ward). Buxton tracks demographics and follows customer transactions to analyze and determine purchasing habits and lifestyles, a process deemed psychographics, according to the company’s website.

The purpose of the study is to help the city determine the best use of each area so they can better develop future business economic strategies, Hanson explained during a phone interview Tuesday.

“They’re able to tell us known traffic patterns, known retail patterns and look at what possible retail could be interested in property in Palos Hills,” Hanson said. “They can give us a better idea of what type of retail might be right for [the city].”

Buxton works with municipalities, as well as retailers, Hanson said.

“Buxton is a unique company because they understand both sides and I think that experience could really help us,” he said.

Part of the study will involve a leakage report, which will show what types of items consumers are leaving the city to go purchase and whether or not that retailer would be the right fit to bring to the city, Hanson explained.

Hanson first brought the idea of a consumer analysis study to the City Council early last year after attending the ICSC Convention in Las Vegas. The convention is the largest retail convention in the world drawing roughly 60,000 attendees.

In June 2008, the city applied for a $55,000 grant through DCEO. When the grant was written and approved for $25,000 less, the city returned to Buxton and altered its study to coincide with the grant, Hanson said.

Hanson spoke with representatives of 47 municipalities last year that have used Buxton and heard “nothing but perfect marks” on the company. The city has never had a professional consumer analysis done before, he said.

“The good thing about this, you could [also] have a business that already exists and give them an idea what the area needs and the business might be able to [tweak] itself,” Hanson said.

Hanson does not believe the business climate has improved since last June when the study was originally discussed, but that the available funds will better prepare the city to develop two of the city’s main business districts, he said.

“Everyone is competing for retail today and we’re just trying to see what we’re best suited for and trying to take the initial step,” Hanson said. “I think there is real value is knowing what is a good fit and what is not a good fit. As the economy starts to improve, we should be ready.”

This is part of the October 8, 2009 online edition of The Reporter.

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