Introduction
Bakersfield, CA, located in Kern County, is a vibrant city with a diverse population and a thriving economy. This article aims to explore the prospects of starting a department stores business in Bakersfield, CA. We will examine the demographic distribution, important residential and commercial areas, approximate investment required, expected return on investment (ROI), and suitable locations for department stores in the city.
Demographic Distribution
Bakersfield has a population of approximately 380,000 residents. The city has a diverse mix of ethnicities, including a significant Hispanic population, making up around 50% of the total residents. The remaining population comprises primarily White, Asian, African American, and other communities. The age distribution is fairly evenly spread, with a slight majority in the 2544 age group.
Residential and Commercial Areas
Bakersfield has numerous important residential areas that are ideal for establishing a department stores business. The most prominent neighborhoods include The Oaks, Greenfield, Seven Oaks, Haggin Oaks, and Stockdale Estates. These areas are populated by middle to upperclass residents who have a higher purchasing power and are likely to shop at department stores regularly.
In terms of commercial areas, Downtown Bakersfield is the heart of the city’s retail sector. It features a mix of small local businesses and national chains. The Valley Plaza Mall, located in the southwest part of the city, is another significant commercial hub that attracts a large number of shoppers. The surrounding area of the mall is ideal for establishing a department store given the existing foot traffic and retail presence.
Investment and ROI
Setting up a department stores business requires significant initial investment, but Bakersfield offers a favorable business environment. On average, the capital required to open a department store can range from $1 million to $5 million, depending on the scale and location. This includes lease or purchase of retail space, store fixtures, inventory, marketing, and staffing costs.
The return on investment for department stores in Bakersfield is generally positive. The thriving retail sector and the city’s population size provide a steady customer base. Department stores can generate revenue through the sale of a wide range of products, including clothing, accessories, home goods, and electronics. With effective marketing and competitive pricing strategies, a wellestablished department store in Bakersfield can expect a reasonable ROI within 35 years of operation.
Ideal Department Stores Locations
When considering specific locations for a department store, downtown Bakersfield and the Valley Plaza Mall area should be primary contenders. Downtown Bakersfield’s central location, existing foot traffic, and potential for expansion make it an attractive choice. The Valley Plaza Mall area benefits from the proximity to major highways and a high concentration of retail activity, ensuring a steady flow of customers.
Conclusion
Starting a department stores business in Bakersfield, CA, holds great potential due to the city’s diverse population, important residential and commercial areas, and favorable business climate. While the initial investment can be substantial, the expected ROI justifies the investment. By selecting an ideal location, entrepreneurs can tap into Bakersfield’s thriving retail sector and establish a successful department stores business in this vibrant city.