Sibley County Economic Development Center - Gibbon Grocery Store

This study was commissioned by the Sibley County Economic Development Center to determine consumer grocery shopping patterns of residents who live in Gibbon or surrounding areas. Two-thousand surveys were sent to residents of Gibbon and those living within a 25-mile radius of Gibbon. Since a community the size of Gibbon cannot effectively support a grocery store, it is important to determine how much support would be forthcoming from residents who live within a 25-mile radius of the community. An analysis of the research process suggests Gibbon could financially support a grocery store as long as it conforms to the perceived needs of prospective customers. This research process also attempted to determine the level of interest residents had toward a Gibbon Co-Op Grocery Store. Based on the continuing excitement of residents in the greater Gibbon area, SMAC has placed the results of this study on this website for all to review and analyze.

Executive Summary

In an effort to discover what prospective customers would want and need from a grocery store if one were to be opened in Gibbon, a total of 2,000 surveys were sent to Gibbon residents and surrounding areas with 357 surveys being returned for analysis.  Analysis of the returned surveys suggests Gibbon could financially support a grocery store, provided its configuration conformed to the perceived needs of the prospective customers.  Among those surveyed, 84 percent who live in Gibbon indicated they would purchase groceries in Gibbon all of the time or sometimes.         

According to this study, a majority of respondents indicated their shopping is done in a city/town close to where they live. Data indicated that respondents living in Gibbon will purchase groceries at a Gibbon grocery store, if the store meets customer needs, such as offering essential grocery items.  

Only 30 percent of respondents who live in Gibbon would be interested in becoming a grocery store co-op member, and the average respondent willing to become a co-op member would invest $100.

Recommendations

The following recommendations have been developed from the survey respondent’s expressed opinions and perceptions:

• A Gibbon grocery store should be opened Monday through Saturday from 7:00 a.m. to 8:00 p.m. and Sunday from 7:00 a.m. to 1:00 p.m.

• A grocery store in Gibbon should offer dairy products, produce, frozen goods, canned goods, and fresh meat.

• A Gibbon grocery store should be able to find individuals willing to be co-op members based on an investment of $100.

• Prospective co-op members will be primarily drawn from residents of Gibbon.

• A Gibbon grocery store should advertise to surrounding communities within a 15 to 20 mile radius of Gibbon.

Conclusions

• The majority of respondents indicated their shopping is done in a city/town close to where they live.

• Most respondents are satisfied with their current grocery store.

• Data shows respondents would be most likely to purchase dairy products, produce, frozen goods, canned goods, and meat department items.

• The majority of respondents indicated a preference for a Gibbon grocery store to be open Monday through Saturday from 7:00 a.m. to 8:00 p.m. and Sunday from 7:00 a.m. to 1:00 p.m.

• The majority of respondents would not be interested in becoming a co-op member.

• Of those willing to invest, most would be willing to invest approximately $100.

• Data shows the further a respondent lives from Gibbon, the less interested they are in becoming a co-op member.

• Most respondents would be willing to drive up to 15 miles to purchase groceries in Gibbon.

• Most respondents living in Gibbon would frequently shop at a Gibbon grocery store.

Methodology

This portion of the report details the steps taken by SMAC to obtain the information used to develop the recommendations and conclusions.  Steps are as follows:

• Secondary sources utilized by SMAC were analyzed to develop questions used in the focus groups held at the Gibbon Community Center.  The purpose of the secondary research was to create questions based on services and products grocery stores near Gibbon offer that might be of interest to potential Gibbon grocery consumers and residents of Gibbon.

• A moderator’s guide (Exhibit A) was drafted by SMAC to lead focus group discussions held at the Gibbon Community Center.  The goal of these focus groups was to determine the grocery wants and needs of current Gibbon residents for survey development.

• A questionnaire (Exhibit B) was then developed by SMAC; it was tested and refined until its format was determined to be valid for use with Gibbon residents and those of surrounding communities.  The questionnaires, along with instruction, were sent through the mail to randomly selected individuals within the target market.  Following respondent completion the questionnaires were returned to SMAC for coding and analysis.

• Returned questionnaires were coded and entered into SMAC’s statistical software, SPSS (Statistical Package for the Social Sciences), for further analysis.  The report and accompanying presentation summarize the results of the study.