Most Wanted Businesses in Rapid City – Retail

Dec 5

1. Trader Joe’s

Headquarters: Monrovia, CA 91016
Locations: 530 stores as of 1/2021
Closest to Rapid City: Fort Collins, CO

Like many of the specialty grocers on the list, Trader Joe’s typically requires a population concentration of 200,000+ within an MSA (Metropolitan Statistical Areas). As of 1/2021, Rapid City’s MSA sits at around 145,000.

Retail

2. Costco

Headquarters: Issaquah, WA
Locations: 559 stores
Closest to Rapid City: Bismarck, ND

Operating as a member-based warehouse store customers can find a wide range of supplies and wholesale items. Despite what the survey says, Rapid City has some growth and work to do before we can expect Costco to break ground. The company seeks locations that have a population of 200,000 within 5 miles and a median income of $75,000.

3. Hy-Vee

Headquarters: West Des Moines, IA
Locations: 265 stores
Closest to Rapid City: Sioux Falls, SD

With locations in eight midwestern states, Hy-Vee prides itself for their “helpful smiles in every aisle.” Hy-Vee is based in the midwestern region and appears to be frequently developing new locations. With most of their locations being toward the east (Iowa, Minnesota, Nebraska, and Sioux Falls) it may be a bit of a stretch for them to expand west to Rapid City in the near-future.

4. Old Navy

Headquarters: San Francisco, CA
Locations: 1,106 stores
Closest to Rapid City: Sioux Falls, SD

Many long-time residents of Rapid City may fondly recall being able to shop at Old Navy which closed in January 2010. Old Navy did announce in 2019 it was intending to open 75 new stores a year, with a goal of 800 new locations in total but it is unlikely they would reopen a store here.

5. Whole Foods

Headquarters: Austin TX
Locations: 503 stores as of 2/2021
Closest to Rapid City: Fort Collins, CO

Coming back to the need for more grocery stores in the area, Whole Foods has cracked the top 5 on the survey. However, as we look at the criteria, Whole Foods requires there to be 200,000 people within 20 minutes as well as a large number of college-educated residents. Rapid City has a density of 30.5% college-educated residents, but the population is still a bit too small making Sprouts a more likely contender than Whole Foods to expand the specialty grocer offerings in the area.

6. Home Depot

Headquarters: Atlanta, GA
Locations: 2,200+ stores
Closest to Rapid City: Gillette, WY

Home Depot is frequently opening new stores and requires a population density of 50,000 and plot size of 10 acres. Rapid City could be on their list of possible locations.

7. Macy’s

Headquarters: New York, NY
Locations: 512 stores as of Q4 2020
Closest to Rapid City: Sioux Falls, SD

While the survey has been clear Rapid City is in need of more clothing options, it is unlikely Macy’s will be one to meet that need. Macy’s has a 3-year plan that includes closing approximately 125 locations and focusing on revamping the remaining stores. They appear to have little interest in establishing new locations at this time.

8. R.E.I.

Headquarters: East Sumner, WA
Locations: 168 stores
Closest to Rapid City: Fort Collins, CO

REI offers top-brand gear and clothing in addition to rentals, classes and events. It is unlikely to see an REI come to Rapid City as the company requires 100,000 or more households within a 15-mile radius as well as a median household income of $50,000 and above. Fortunately, Rapid City has great local options such as Roam’n Around and Scheels to help meet the needs of our outdoor enthusiasts! Don’t forget to visit Outdoor Campus West for classes and events as well.

9. Burlington

Headquarters: Burlington, NJ
Locations: 761 stores as of 3/2021
Closest to Rapid City: Johnstown, CO

Burlington is a national off-price department store retailer with an emphasis on men’s, women’s and kids clothing as well as shoes, baby gear and home décor. Site selectors require a population of 150,000+ in an area’s downtown, urban, suburban, or rural trade area, making Rapid City close with a population of 145,000 but will still need to do some growing to check all the boxes of consideration.

10. Sprouts

Headquarters: Phoenix, AZ
Locations: 360+ stores
Closest to Rapid City: Fort Collins, CO

Sprouts Farmers Market focuses farm-stand heritage by offering a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Current pending stores are focused on the coasts in California, Florida and even Texas so it is unlikely to see a Midwest (Rapid City) location in the near-future.

Local Opportunities

Throughout focus group conversations as well as the comments there were several areas of need identified that could be met by local businesses. Children’s clothing stores seemed to be in high demand as Carter’s and OshKosh were both mentioned a notable number of times. There also seems to be a strong gap in professional attire as women and men both stated a need for more options to shop clothing and shoes.

Brad Jurgensen