When it comes to why new businesses chose a certain location
over another, the answer often comes down to numbers. The case with
Trader Joe’s choice of Morgan Hill over Gilroy may be no
different.
”
We are looking throughout Morgan Hill, but at this time have
nothing confirmed,
”
said Alison Mochizuki, a spokesperson for the Monrovia-based
company.
”
We are interested in the city and would love to be there. Morgan
Hill has a lot of ‘foodies’ and seems to be a good fit for us.
”
When it comes to why new businesses chose a certain location over another, the answer often comes down to numbers. The case with Trader Joe’s choice of Morgan Hill over Gilroy may be no different.
“We are looking throughout Morgan Hill, but at this time have nothing confirmed,” said Alison Mochizuki, a spokesperson for the Monrovia-based company. “We are interested in the city and would love to be there. Morgan Hill has a lot of ‘foodies’ and seems to be a good fit for us.”
Mochizuki declined to comment on the criteria Trader Joe’s uses to select a location, noting that the privately owned company does not disclose details of negotiations.
But there is a lot more that goes into selecting a location for a future business than residents with a penchant for the munchies. Before a company decides to invest millions of dollars, it often plays the numbers game to see if it will get the most out of their money.
Dan Ehrler, the executive director of Morgan Hill’s Chamber of Commerce and Garrett Toy, the director of business assistance and housing services, work together with companies that are considering the city as a location.
Ehrler and Toy provide demographic information for interested companies, as does Gilroy’s Economic Development Corporation executive director Larry Cope.
“We need to fit into their box of what they are looking for,” Cope said. “Each company has their baselines – a certain amount of population and income.”
Cope provides specific information to companies considering the area – from restaurants to microchip makers – using a license the city has with Demographics Now, an online market demographic analysis Web site.
“Rather than just saying we have 46,000 individuals, we can break down the demographics by age, nationality and spending habits and produce a custom report down to an address,” Cope said. “We can tell you within one mile how many restaurant meals are purchased or the number of clothing items [bought].”
In looking at the six most recently opened Trader Joe’s locations, five out of six of the communities are home to a population of more than 60,000 residents, according to 2004 U.S. Census data.
Four out of six of the communities have a median household income of at least $55,000, according to 2000 U. S. Census data. The most-recently opened California locations include stores in Chico, La Quinta, Long Beach, South San Francisco, Thousand Oaks and Tustin.
Compared to these communities, Morgan Hill has a population of 35,000 residents with a median income level of more than $80,000.
Companies also look at availability of space and other aspects of a community.
