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Tehachapi aims to capture $158 million in retail trade leakage

The Forde Files No 135

Retail leakage happens when residents go to Bakersfield or Lancaster/Palmdale to shop instead of shopping in Tehachapi.

Tehachapi Economic Development Coordinator Michelle Vance is on a mission to turn that around, to keep the money in Tehachapi and to draw shoppers up the hill to make their purchases.

"One hundred fifty-eight million dollars leave our town every year," Vance told the Greater Tehachapi Economic Development Council on Nov. 2 at the Tehachapi Police Department community room.

Stores in Tehachapi already attract out-of-town shoppers.

"Tractor Supply has customers from Bishop," Vance said.

Officially, retail leakage indicates that potential retail sales are greater than actual retail sales for the trade area.

Her research on retail demographics shows what kinds of new stores would do well in Tehachapi and how much is lost to leakage when customers go out of town to make their purchases – from $47 million in the automotive category to $9 million for food and beverages. Other retail categories that suffer leakage include apparel and accessories, health and personal care, general merchandise, furniture, electronics and appliances, gas stations and miscellaneous stores like florists, stationary and gifts.

Vance showed that Tehachapi's trade area within a radius of 100 miles (approximately a two-hour drive) represents a population of 15.6 million people. By contrast, Bakersfield's trade area of the same size represents a population of 7.23 million.

The population and source of customers closer to home – in Tehachapi, Mojave, California City and Rosamond – is 80,781.

She said the future Red Apple Pavilion at the corner of Tucker Road and Red Apple Ave. will be a "power center," but no anchor store has been announced.

Vance said that the empty bank building at Green and F streets has been purchased and will be a Stray Leaves Vineyard tasting room and winery, and that the Masonic Lodge building next to the Loop Newspaper on Green Street also has been sold.

 

 
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