35 / 61
35
category that includes furniture/appliance
stores, apparel stores, and department
stores among others), the overall leakage is
31 percent. Given the City’s small size and
location in the large and crowded South
County retail trade area, as well as the
shrinking of many retail categories, it is
unlikely that Morgan Hill will ever capture
100 percent of residents’ purchases.
However, there are opportunities to
improve the retail picture in Morgan Hill.
One strategy to increase the City’s retail
sales is by upgrading older strip retail
centers (for example, along Monterey Road)
and continuing to support the
transformation of Downtown Morgan Hill
into a pedestrian-oriented, mixed-use
destination. There are also opportunities to
attract new retailers, particularly in
categories such as restaurants and food
stores for which residents and workers are
less likely to drive long distances to dine
and shop.
Figure 17: Sales Tax Leakage in Morgan Hill (Percent of Residents’ Disposable Income Captured in the
City), 2
nd
Quarter, 2016
0% 100% 200% 300% 400% 500% 600% 700%
Food Processing Equipment
Liquor Stores
Auto Sales-Used
Furniture/Appliance
Recreation Products
Apparel Stores
Miscellaneous Retail
Busines to Business
Drug Stores
Florist/Nursery
Building Materials-Wholesale
Restaurants
Department Stores
Building Materials-Retail
Food Markets
Auto Parts/Repair
Auto Sales-New
Service Stations
Misc. Vehicle Sales
Total Sales
Percent of Residents' Disposable Income Captured in Morgan Hill
Total Sales Construction General Retail
Transportation Food Products
Source: MuniServices, "Morgan Hill: 2nd Quarter 2016 Sales Tax Capture & Gap Analysis Report."