Oklahoma City, OK, is a thriving metropolitan area with a diverse population. In this article, we will delve into the potential of the outlet mall industry in Oklahoma City, discussing the required investment and expected returns. We will also highlight suitable locations for setting up an outlet mall business.
Demographics of Oklahoma City, OK:
Oklahoma City has a population of approximately 650,000, making it the largest city in the state. With a median household income of around $54,000, residents have significant spending power. The city boasts a mix of both urban and suburban neighborhoods, resulting in a wide customer base for businesses.
Importance of Residential Areas:
To ensure a successful outlet mall business, it is crucial to consider the surrounding residential areas. Prominent neighborhoods in Oklahoma City, such as Edmond, Nichols Hills, and Yukon, have a higher concentration of affluent residents. These areas provide an excellent opportunity for an outlet mall, as affluent customers often seek discounted designer products.
Key Commercial Areas:
Apart from residential areas, the business districts also play a vital role in the success of an outlet mall. Downtown Oklahoma City, with its dynamic blend of office buildings, shopping centers, and entertainment venues, offers an excellent location for an outlet mall. Other commercial areas such as Classen Curve, Penn Square Mall, and Quail Springs Mall attract large numbers of shoppers and can also be considered for an outlet mall setup.
Investment and Return on Investment (ROI):
Investing in an outlet mall business in Oklahoma City requires careful financial planning. On average, an estimated capital investment of $10$30 million is required, depending on the size and location of the mall. This investment includes costs associated with land acquisition, construction, store fixtures, marketing, and initial inventory.
The return on investment largely depends on factors such as the mall’s location, store variety, and the overall economic conditions. A wellexecuted outlet mall business can generate annual revenues of $15$30 million, with a profit margin of approximately 10%20%. It is crucial to conduct a thorough feasibility study and create a comprehensive business plan while considering the expected returns.
Promising Outlet Mall Locations:
- Downtown Oklahoma City: With its bustling urban atmosphere and proximity to various business districts, downtown Oklahoma City provides an excellent location for an outlet mall. Its accessibility and central location attract both residents and tourists.
- Quail Springs Mall Area: Situated in a prime shopping district, the Quail Springs Mall area already attracts a significant number of shoppers. Establishing an outlet mall nearby would tap into this existing customer base and generate additional interest.
- Classen Curve: Known for its upscale boutiques and trendy shopping experience, Classen Curve offers a unique opportunity for an outlet mall targeting the designconscious demographic. Its strategic location and affluent customer base make it an attractive choice.
Starting an outlet mall business in Oklahoma City, OK, presents significant opportunities for success. With a diverse population, affluent neighborhoods, and thriving commercial areas, the city provides ample potential customers. By carefully considering the required investment, expected returns, and suitable locations, entrepreneurs can embark on a rewarding journey in the outlet mall industry. Remember to conduct thorough market research, develop a solid business plan, and capitalize on the city’s demographics and commercial landscape to maximize the chances of success.