General Plan Policy Options: Retail Leakage
As summarized in the 2020 Market Demand Analysis, the City of Hollister currently experiences an estimated $26 million in retail leakage on an annual basis. Retail leakage is spending by Hollister residents that occurs outside of the City Limits. This amounts to roughly $700 per capita of annual spending by Hollister residents outside of Hollister. By comparison, the Association of Monterey Bay Area Governments (AMBAG) region experiences just $30 in retail leakage per capita on an annual basis. According to local stakeholders, this retail leakage is driven by several factors, including the significant amount of out-commuting by Hollister residents to other workplaces. On the commute back to Hollister, these residents have several retail destination options before reaching Hollister that capture a significant amount of their spending. Another potential reason for the retail leakage is the gaps in the City of Hollister’s existing retail offerings. More specifically, the 2020 Market Demand Analysis found significant retail leakages in clothing and clothing accessory stores, general merchandise stores, and home furnishing stores. This indicates areas of potential shortages in the local retail inventory that are forcing residents to spend money outside of the City limits.