SWEET HOME — Sweet Home merchants are losing an estimated $37 million in sales annually to outlying communities, some 25 business and civic leaders were told Thursday.

The information was compiled as part of a community and business survey being undertaken by Marketek, a Portland research firm. The $13,500 project is being paid for with a $7,500 Rural Business Enterprise grant and $3,000 each from the city and Sweet Home Economic Development Group Inc. It is part of economic development work being done by the Sweet Home Active Revitalization Effort.

Marketek’s Mary Bosch said that although the Sweet Home business district offers many pluses, according to some 265 survey respondents, the lack of certain types of basic merchandise leads some residents to shop in Lebanon, Albany and Eugene.

Much of the sales leakage — about $18 million — falls under the general merchandise category; about $9 million falls under the restaurants category.

Shoppers also go out of town to look for home furnishings, especially appliances and electronics, since the community’s only appliance store recently closed.

“There are many opportunities to capture more business,” Bosch said. “The community is experiencing growth and that creates opportunities for sales growth as well.”

According to statewide statistics, if the amount of sales leaked to other communities could be captured locally, it would warrant the addition of some 190,000 square feet of additional retail space.

Participants were asked to point out what the community is doing well. They noted that: younger people are starting new businesses; the community offers a great quality of life; real estate prices are reasonable when compared with other cities in the area; the school district is strong; recent housing and marina developments are going in at Foster Reservoir; the location is just minutes from recreation as well as major cities; the Oregon Jamboree is successful; public facilities are relatively new; and there’s a renewed commitment by businesses to work together.

Business district needs include: improving building appearances; more business education for some business owners; hours that cater to people who work out of town; and better signs.

One suggestion was that the city should implement a business license program and dedicate income toward business promotion and marketing.

Residents and business owners can complete two surveys on the city of Sweet Home’s website for another month.

So far, key results include:

• Lebanon (47 percent) and Eugene (33 percent) are the most popular places for Sweet Home residents to do their non-grocery shopping.

• Selection (78 percent) and price (63 percent) are the primary reasons Sweet Home residents shop elsewhere.

• Types of merchandise not available in town are appliances (42 percent), linens and towels (39 percent) and furniture (37 percent).

• Also missing are places to buy men’s and women’s casual wear, shoes, and teen and young adult clothing.

• A steak house or grill would be heavily supported, according to 59 percent of the respondents, as would a bakery and family-style restaurant.

Bosch plans to hold another meeting in January.