Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion - Jack Welch
About Richmond, Ky
Click here to go to Retail Market Survey, or here for Traffic Patterns
Richmond and Madison County are one of the fastest growing areas in the state. It is the second largest retail market in the Bluegrass region with many of the amenities associated with living near the city of Lexington. However, Richmond enjoys a dramatically lower cost of housing and less congestion. Richmond’s growth will continue as the Bluegrass Region continues to expand. Lexington’s development limitations and higher cost of living means significantly more people will seek the Richmond life style alternative.
An abundance of housing, from affordable to executive, has created a diverse and fast growing population for the city and county. The medium home price in Madison county is $50,000 in the county and $89,800 in the City of Richmond versus $113,000 in the Lexington/Fayette county area, a dramatic difference.
Richmond’s location has made it the logical gateway for the southern migration of retailers and businesses from Lexington and Fayette County to a community that offers many opportunities now and in the future. Growth is inevitable as the Richmond area has reasonable lease and housing costs, competitive labor costs and uncongested access to the key transportation routes of I-75 and I-64.
As the city expands its regional leadership role in the years to come, its leaders are focused on targeted growth which will provide new retail opportunities and jobs for its citizens. This growth development plan is needed as from 1990 to 2000, Madison County’s population grew 23% to 70,872 and is expected to grow to at least 96,102 by 2020.
While seeking retail and restaurant offerings in Richmond, many citizens still have to travel to Lexington to find the stores and restaurants they desire. As Richmond pulls from a market area of eleven counties with an additional population of 236,000, retail opportunities abound for businesses to provide local citizens with options to shop in their own community as well as making Richmond a bigger draw among its neighboring counties. With earnings in the market area of $3.2 billion, future retail development will ensure that Richmond will capture its share and more of this source of disposable income.
Recent proprietary research data showed up to 59% of retail spending in Richmond comes form residents who live outside of Madison County. They shop in Richmond of the convenience, the variety, and the avoidance of congestion and traffic hassles associated with Lexington. This spending will only grow as new stores, restaurants and hotels build upon the expanding base of shopping options within the community.
The city of Richmond and Madison County is a solid mix of blue-collar workers, young professionals, college students by the thousands, retirees, military personnel, government and educational workers and growing families. Unemployment is below the state average of 5.5% with Madison County at 4.5% as of May 2003.
Retail and job growth is already showing the evidence of this trend with retail sales being $565 million in 1997 employing almost 4,000. Local job growth has risen from 21,832 in 1990 to 30,236 in 2000. Single family homes have grown to 17,500 in the county accounting for 60% of all dwellings. 390 single-family housing permits were issued in Richmond in 2002 and in the first 6 months of 2003, 251 permits have been issued, an impressive increase over the prior year.
Employment is expected to be 57,000 in 2025, a dramatic increase from 27,950 in 2000. This growth estimate does not take into account major military growth initiatives at the Blue Grass Army Depot, located just outside of Richmond, which is projected to bring in thousands of military and civilian personnel jobs over the next fifteen years.
Local retail growth is encouraged and promoted by very active local merchants and the Chamber of Commerce with its successful “Shop Richmond” campaign each holiday season. It is intended to keep retail dollars in the community, to support existing businesses and attract new establishments.
Richmond offers the very best of Kentucky’s rich traditions and heritage with arts, crafts, antique shops, unique agricultural tours, civil war sites, architectural and historical tours. Richmond has one of the finest restored Nineteenth century downtown commercial districts in the state with over 100 buildings on the National Register of Historic Places and three National Register Historic Districts.
Richmond’s growth has given it the ability to devote and increasing amount of community resources to education, parks and law enforcement. With Eastern Kentucky University, a comprehensive regional university with over 15,500 students located in the city, the area is vibrant with activity and change. Local parts and attractions are easily accessible without large crowds or congestion.
Lexington and the Bluegrass regions’ historic growth pattern has made it inevitable that one day the city of Richmond would be an important area for population and economic growth. That time is now. As a result of this continuing growth, the city and county are becoming more populated, more prosperous and are able to offer its residents a widening range of retail and lifestyle opportunities.
Richmond, although one of the fastest growing cities in the state, continues to remain a “small town” at heart with a wealth of southern hospitality. Consider Richmond, in the heart of Bluegrass Country, a rich land, rich in tradition and rich in the growth ideas of tomorrow. It really is “the place to be” for future growth in sales and profits for your business.
Retail Market Survey
Richmond businesses draw primarily from an eleven county region as retail is under-developed in the smaller communities outside of Richmond. While shoppers also come from Lexington to visit Madison county tourist sites and to visit specialty retailers, for purposes of this review, they are excluded as the main shopping constituents. The main shoppers in Madison County come from the rural portion of the Southern & Eastern bluegrass region.
Many shoppers prefer to visit Richmond due to the lack of heavy traffic congestion, as is the case in Lexington. Shopping pattern research conducted by Eastern Kentucky University was completed in June 2003 on six different days and approximately 1,300 vehicles were checked to verify these shopping pattern assumptions.
The results of the survey showed that up to 58% of the shoppers came from outside of Madison County to visit retail locations. For restaurants, the number was almost identical, at 59%. The survey showed shoppers beyond the traditional 11 county area with a number of cars from Fayette County, the home of Lexington. This makes sense as some specialty retailers and restaurant owners in Richmond have stated that their business success depends on a steady stream of customers from Lexington.
Vehicle license plates were checked at the Richmond Mall, Wal-Mart and other selected locations of prime retail shopping in the City. In Kentucky, the home county is identified on the license plate so it is easy to determine where the shoppers live to visit these retail outlets. While there are some exceptions to this tracking of vehicles to home county, it has significant directional accuracy.
To complement the auto tag survey, over 400 shoppers were personally interviewed at the Richmond Mall in July 2003. It was found that 45% of their shoppers were from outside Madison County, which supports the auto tag survey. These two bits of research support the assertion that a high percentage of shoppers in the county come from the surrounding 10 county market area. With increased offerings in the city, this number will increase.
Traffic Pattern Report
The following are excerpts from “Madison County Area-wide Transportation Study” produced by Jordon, Jones & Goulding of Lexington, Kentucky which demonstrates actual and modeled traffic flows on key arteries in Richmond and Madison County. This report presented October 2002 is being finalized for publication. Updated information will be available from the City Manager, City of Richmond.
It’s important to note that a new Southern exchange will be established on I-75 that will connect with Richmond (construction expected in 2004). This area will serve a large new rest area for travelers. The intersection area will be annexed by the city and land will be available for development. Zoning, ramp positions and related information can be gained from the City Manager’s office.
Traffic Pattern Reports, "Madison County Area Study"
Click to view them below
