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The Dripping Springs area is growing quickly and, with it, its retail trade area.
Featured speaker Aaron Farmer had much to say on the subject at the Dripping Springs Chamber of Commerce’s monthly luncheon on Wednesday, March 22. Farmer, who is president of retail recruitment and development firm The Retail Coach, emphasized the importance of understanding a city’s retail trade area: who is coming to shop in Dripping Springs? This can be determined by a city’s RTA, which is established by cell phone data that pinpoints consumer home locations and determines their path-topurchase.
“Forgetting about the city limits, you should be focusing on the retail trade area,” he explained. “Dripping Springs is pulling consumers from Blanco and Johnson City to the west, Cedar Valley to the east, Fischer to the south and Cypress Mill to the north. That’s made us a market of 88,000 [people] — one of the fastest growing in the United States.”
While a healthy, growing RTA will sit at a compound annual growth rate between 1 and 2%, Dripping Springs’ RTA is exceeding that benchmark, currently sitting at a rate of 5.34%, according to Farmer. (This is significantly larger than even the previous year’s rate, which was 3.28%.) With an average household income in the RTA of $166,642, many retailers are starting to take notice.
“There have already been a lot of bigger names, bigger chains coming into Dripping Springs,” Farmer said, “and there are many more looking, coming.”
Multiple new chain retailers moved into the Dripping Springs area this past year, including Freebirds World Burrito, P. Terry’s Burger Stand, Panda Express Chinese Kitchen, Popeyes Louisiana Kitchen and Mighty Fine Burgers, Shakes and Fries. Future retailers for the area, according to Farmer, may include Chuy’s Tex Mex, Raising Cane’s Chicken Fingers and Dairy Queen (a replacement location for the now-defunct franchise on US Highway 290).
“I expect growth to be strong,” he explained. “Businesses operating in Dripping Springs consistently operate at a high percentile within their respective chains — for example, Tractor Supply, Torchy’s and Hat Creek are all operating well within the 85th percentile.”
Farmer said that, in 2023, he expects to see some COVID-19 concerns persist, along with a labor availability shortage, a supply chain lag, e-commerce competition and inflation.
“Overall, there’s going to be some uncertainty,” he explained. “There’ll be more drive-thrus and outdoor seating, more curbside and delivery. But we’re in a good spot, and we’re only growing.”
