Colorado Springs, CO is a vibrant city with a growing population and a diverse economy. With its favorable demographics and strategic location, it presents an excellent opportunity for starting an Outlet Mall business. This article aims to provide insights into the industry’s prospects, approximate capital investment, return on investment (ROI), and highlight suitable locations for an Outlet Mall store.
Population and Residential Distribution:
Colorado Springs, CO is home to approximately 472,688 people as of 2021, according to the U.S. Census Bureau. The city has experienced steady population growth over the years, making it an attractive market for retail businesses. The residential distribution is fairly spread out across the city, with notable residential areas including Briargate, Old Colorado City, and Broadmoor.
Commercial Districts:
Colorado Springs, CO boasts several thriving commercial districts that attract tourists and locals alike. Some notable commercial areas include:
- Downtown Colorado Springs: The city’s vibrant and historic downtown area is a hub of shopping, dining, and entertainment. Its mix of retail stores, galleries, and eateries offers a dynamic environment for an Outlet Mall business.
- Chapel Hills Mall Area: Located in the northern part of the city, this commercial district features Chapel Hills Mall, which is already a popular destination for shopping. The presence of a wellestablished mall in the area ensures a steady flow of potential customers.
- Powers Boulevard Corridor: Situated on the eastern side of Colorado Springs, the Powers Boulevard Corridor is a rapidly growing commercial area. It attracts residents from the surrounding neighborhoods and offers ample opportunities for an Outlet Mall business.
Prospects of Outlet Mall Industry:
Outlet Malls have gained immense popularity in the United States due to their attractive pricing, variety of brands, and the thrill of finding great deals. Colorado Springs, CO presents a promising market for Outlet Malls for the following reasons:
- Growing Resident and Tourist Market: With a steadily increasing population and being a popular tourist destination, Colorado Springs offers a substantial customer base for an Outlet Mall business.
- Thriving Retail Sector: The city’s retail sector is robust and diverse, indicating strong consumer demand and purchasing power.
- Limited Outlet Mall Competition: While Colorado Springs has several shopping centers and malls, it has a relatively limited number of Outlet Malls. This provides an opportunity for a new Outlet Mall business to cater to the market’s demand.
Capital Investment and ROI:
The capital investment required for opening an Outlet Mall in Colorado Springs can vary depending on factors such as location, size, and amenities offered. However, a rough estimate suggests that a smalltomediumsized Outlet Mall may require an initial investment ranging from $3 million to $8 million.
ROI is influenced by multiple factors, including the quality and range of brands, marketing strategies, and customer satisfaction. Outlet Malls typically offer attractive profit margins due to discounted pricing and higher volume sales. While estimates of ROI can vary, a wellmanaged Outlet Mall in a suitable location can achieve a return on investment within 24 years.
Ideal Outlet Mall Locations:
Considering the population distribution and commercial areas, the following locations in Colorado Springs are suitable for opening an Outlet Mall:
- Downtown Colorado Springs: Benefiting from its bustling atmosphere and foot traffic, this area provides visibility, accessibility, and a diverse customer base.
- Chapel Hills Mall Area: Leveraging the existing retail presence, an Outlet Mall in this location can capitalize on the mall’s popularity and attract visitors from the surrounding neighborhoods.
- Powers Boulevard Corridor: With its rapidly growing population and limited outlet options, this area offers ample potential for a successful Outlet Mall business.
Starting an Outlet Mall business in Colorado Springs, CO holds great potential due to the city’s growing population, favorable demographics, and limited competition. With the right location, strategic planning, and a focus on customer satisfaction, entrepreneurs can expect a positive return on investment within a few years.