Understanding Retail Opportunities in Grant County
One of the questions we hear most often at the Grant County Development Corporation is, “What kinds of businesses could actually work here?”
Instead of guessing, I recently looked at real data to better understand how people in our community shop and where opportunities may exist for new businesses.
Several reports were reviewed, including a statewide retail trade study and local retail leakage reports that measure where residents are currently spending their money. What the data shows is encouraging—Milbank and Grant County already serve as a regional shopping center for surrounding communities.
Milbank Already Draws Shoppers From Outside the Community
Although Milbank has a population of just over 3,500 residents, our retail sector serves a much larger group of people. Retail data shows that Milbank has a retail pull greater than 1.0, meaning our community attracts more retail spending than it loses to other cities. In simple terms, people from outside the city regularly come here to shop.
This analysis estimates that Milbank captures retail spending from roughly 1,461 people beyond the local population, which reinforces our role as a regional hub for Grant County and nearby communities.
What the Local Market Looks Like
The retail analysis also provides a snapshot of the local market.
Within Milbank:
Estimated population: about 3,700 residents
Households: approximately 1,600
Median household income: about $69,500
Businesses operating in the city: over 200
Total employees: roughly 1,900
Across Grant County, the market grows even larger:
Population: roughly 7,700 residents
Households: about 3,100
Median household income: approximately $74,000
Businesses: 350+
Employees: more than 3,500
When you add in nearby communities that travel here to shop, the retail market becomes even larger.
Where the Biggest Opportunities Exist
Retail leakage reports help show where residents are currently spending money outside the community. When that happens, it often means there may be room for additional businesses locally.
In Milbank, several areas stand out.
Grocery stores are the biggest opportunity. The data shows that local consumer demand for groceries exceeds the amount currently being sold in Milbank by more than $10 million annually.
Restaurants also show strong demand, both for sit-down dining and quick-service options.
There are also opportunities in categories like general merchandise and specialty retail.
At the county level, the numbers are even larger. Grant County residents spend more than $24 million each year on groceries, much of which is currently leaving the county when people travel elsewhere to shop.
Local Businesses Already Draw Regional Customers
Another interesting piece of data looks at where customers are coming from. For example, analysis of shopping patterns for Dollar General in Milbank shows that about 80% of visits come from the surrounding trade area, not just the city itself.
That tells us something important—Milbank isn’t just serving local residents. Many people from surrounding rural areas already rely on the community for everyday shopping.
What This Means for Retail Recruitment
Based on the research, several types of businesses tend to perform well in communities like ours:
Farm and rural lifestyle retailers
Value-oriented grocery stores
Drive-through coffee concepts
National quick-service restaurants
General merchandise retailers
Businesses in these categories often succeed in smaller regional markets because they serve both local residents and shoppers traveling in from nearby towns and rural areas.
Taking This Information to National Retailers
This spring, the Grant County Development Corporation will attend the ICSC retail convention in Las Vegas, one of the largest retail development conferences in the country.
At the conference, we will meet directly with retailers, developers, and franchise operators to share information about the Grant County market. The goal is to build relationships and help businesses understand the opportunities that exist here.
We will be highlighting several strengths of our community:
Milbank’s role as a regional retail hub
Strong local and regional consumer spending
Highway access along U.S. Highway 12 and South Dakota Highway 15
Available commercial development sites
A supportive local business environment
Supporting Local Businesses While Looking Ahead
Bringing new businesses to a community does not replace the importance of existing local businesses. In fact, successful communities often have a healthy mix of locally owned businesses and national retailers. When the right types of businesses are added, they can increase shopping traffic and help keep more spending within the community.
Grant County already has a strong retail foundation. By understanding our market and working with retailers who are a good fit, we hope to continue strengthening the local economy and expanding opportunities for residents and businesses alike.
