By: Business in Minneapolis, MN

Outlet stores have become increasingly popular in recent years, offering customers discounted merchandise from a variety of brands. This article aims to provide an overview of the outlet store industry in Minneapolis, MN, including the resident distribution, important residential areas, and business districts. It will also touch upon the capital investment and return on investment for opening an outlet store, along with suitable locations for such businesses.

Resident Distribution:

Minneapolis, MN, is the largest city in the state and the secondmost populous in the Midwest. The city is home to a diverse population, with approximately 425,000 residents. The median age of residents is 32 years, indicating a youthful consumer market that is open to trying new shopping experiences. Additionally, the city boasts a higher than average income per capita, making it an attractive market for higherend brands.

Important Residential Areas:

When considering the location for an outlet store, it is vital to target areas with a higher concentration of potential customers. In Minneapolis, MN, some important residential areas to consider include Downtown Minneapolis, Southwest Minneapolis, and Northeast Minneapolis.

Downtown Minneapolis is a thriving business and residential district, attracting a significant number of professionals and tourists. With numerous luxury hotels, office complexes, and entertainment venues in this area, an outlet store catering to the higherend market could flourish.

Southwest Minneapolis is known for its affluent neighborhoods and closeknit communities. Residents in this area are often willing to spend more on quality products, making it a suitable location for an upscale outlet store.

Northeast Minneapolis, on the other hand, is a trendy and eclectic neighborhood, attracting a younger demographic. The area is known for its artistic and bohemian vibe, providing an excellent opportunity for a more nicheoriented outlet store targeting this demographic.

Business Districts:

Minneapolis, MN, has several business districts that draw a significant amount of foot traffic, making them ideal locations for outlet stores. The most notable business districts include Downtown Minneapolis, Uptown, and the Mall of America.

Downtown Minneapolis, as mentioned earlier, is a bustling area with a mix of businesses and residential complexes. Its central location and accessibility make it an attractive spot for an outlet store, providing easy access for both local residents and tourists.

Uptown is a vibrant neighborhood with a thriving retail scene. Many young professionals and college students reside in this area, creating a perfect environment for an outlet store catering to their preferences.

The Mall of America, located in the suburb of Bloomington, is the largest shopping mall in the United States. With over 500 stores and attractions, it attracts millions of visitors each year, making it an exceptional location for an outlet store seeking a wide range of customers.

Capital Investment and Return on Investment:

The capital investment required to start an outlet store in Minneapolis, MN, can vary depending on several factors, such as the size of the store, the brand partnerships, and lease agreements. On average, the initial investment can range from $200,000 to $500,000.

However, the return on investment for outlet stores can be quite lucrative. Due to the discounted pricing strategy and the growing consumer demand for bargains, outlet stores typically see a steady stream of customers. Profit margins can range from 25% to 40%, depending on the product mix and brand partnerships. With proper marketing and strategic pricing, outlet store owners in Minneapolis, MN, can expect a positive return on their investment within a reasonable timeframe.

The prospects of starting an outlet store in Minneapolis, MN, are promising. The city’s diverse and youthful population, along with its affluent neighborhoods and popular business districts, provide a fertile ground for this type of retail business. By selecting suitable locations and understanding the target market’s preferences, entrepreneurs can tap into the potential of the outlet store industry and enjoy a satisfying return on investment.