10/3/2011

Opportunity 2011-2012:

Retail Trends & Recruitment

Strategies

Presentedby:
1

About The Retail Coach

Retail Analytics & Locational Intelligence

Wedevelopand
executehighimpact
retail recruitment and
retailrecruitmentand
developmentstrategies:
Corporatesiteselectionwithnationalretailer
Retailrealestatebrokerage
Retailleasing
Development/Redevelopment
Landdevelopmentwithinvestmentfirm
Marketanalysis&landstrategy

Fromstarttofinish:
retail recruitment is
retailrecruitmentis
TheRetailCoachs
onlyfocus.
TheRetailCoach experience,
strategy,technologyand
creativeexpertise.

2011 Client States

Updated 04/26/11

10/3/2011

The New Economic Development

Retailmustbea
componentofyour
communitys
comprehensiveeconomic
developmentstrategy.

TheUnitedStatesisquicklybecomingaserviceeconomy:ifyou
dontunderstandthis andcapitalizeonit yourcompeting
communitieswill.
4

The New Economic Development

Retail economic
developmentislocalized.
Thereisonlyonewinner:
Thecommunitywho
receivesthesalestax
revenue.

Regionalismisthetrendin
economicdevelopmenttoday.Ifa
plantgoesinnextdoortoyou,
youregoingtobenefit;andifthe
plantcomestoyou,yourneighbors
aregoingtobenefit.Youcantdoit
yourself.Youhavetolookaround
andgetpartners.
JohnLewis
AssociateDirectorofGovernmentalStudies
atNorthernIllinoisUniversity
5

Retailer Recruitment
Lookatyourcommunity
throughtheeyesofa
retailer,developer
and/orinvestor.

10/3/2011

Be Prepared for Active Recruitment

Retailersgowherethedealsaretheeasiest.
Treatthemlikecustomersandmakeiteasyforthemto
gettheinformationtheyneed.
Haveonepointofcontactinyourcommunitywhois
responsibleandaccountableforretailrecruitment.

YouMustHave:
Currentdatabaseofavailableproperties
Currentretailtradeareaandcommunitydemographics
Retailgaporopportunityinformation
Currenttrafficcounts
Aerialphotograph
BepreparedtosendinformationINSTANTLY.
7

Retail Trends

Retailerdemandfor
newlocationsisup
acrosstheboard
growthplansup
40%from2010
levels

Highinterestareasforretailexpansion
Hi
hi t
t
f
t il
i
primarilywhereunemploymentislow
GreaterWashingtonD.C.Area
EasternSeaboard(BostontotheCarolinas)
Chicago
Texas
Florida
California
8

Retail Trends
BigBoxes Shrink&ReThink

TheOnlineShoppingEffect
dowecompletelyunderstandthefullimpact?
Thetrendistoshifttosmallerintimatestoresstockingonlythe
bestsellingitems customersaredirectedonlineforotheritems
9

10/3/2011

Retail Trends
RetailerRepositioning
HomeDepot
SellingpadsitestoQSRsandotherusers

OfficeDepot
Openeditsfirst5,000sq.ft.storeinDecember2010.
g
Planscallforreinventingitselfasaconvenienceretailer
likeWalgreensandCVS

Gap
ShrinkingGapKidsandGapBodyandplacinginside
Gapstores

Walmart
AcceleratingtherolloutofitssmallerWalmartExpress
conveniencestorelocations(15,000sq.ft.).
Firstunitopened2Q2011
10

Retail Trends
RetailerRepositioning
Walmart
NeighborhoodMarketisbeingrebrandedtoWalmart
Marketandwillfocusongroceriesandhomegoods.
Storesizeswillrangefrom25,000 70,000sq.ft.

Staples
Opening4,000sq.ft.officesupplyconveniencestores
andwillonlycarryhighvolumesalesitems.Plansare
tosaturateurban/suburbanareas

BestBuy
FocusingonsmallerstorefrontscalledBestBuyMobile

11

Retailer Expansion Plans

Retailersare
Lookingfor
Opportunities
NOTJustSites

12

10/3/2011

Retailer Expansion Plans

AuntieAnnes
BaskinRobbins
BuffaloWildWings
CharleysGrilledSubs
Checkers/Rallys
ChickfilA
Chipotle
ColdStoneCreamery
Dennys
DunkinDonuts
FiveGuysBurgers&Fries
GenghisGrill
IHOP

50
60
100
100
125
80
130
100
111
350
200
100
70

LittleCaesars
MarcosPizza
PandaExpress
P
d E
Panera Bread
Pinkberry Yogurt
PopeyesChicken
RedMangoYogurt
Smashburger
Sonic
Wingstop

100
75
100
100
100
130
100
100
85
90

13

Retailer Expansion Plans

DollarGeneral
FamilyDollar
DollarTree
BestBuy
BestBuyMobile
Citi Trends
T d
Chicos
BurlingtonCoatFactory
AT&T
Apple
Aldi
99CentsOnly
711
Target

625units
300
275
8
150
65
40(18months)
20
100
50
100
25
350
21

Forever21
JoAnnStores
PepBoys
RossDressForLess
SaveALotGrocery
TractorSupplyCompany
Ulta
VerizonWireless
Hibbett Sports
Walmart SC
Walmart Express

50
50
55
60
100
75
60
125
50
48
40100

14

Understand Retail Site Selection

Thesiteselection
processislongand
involved.

10Steps
1.
2.
3.
4.

Completeanareamarketanalysis
Identifyandrankretailsubmarkets
Determinethetradearea
Analyzethedemographicsand
psychographics
5. Determinecompetitors
6. Identifytrafficgenerators
(hospitals,employers,cardealers,etc.)
7. Analyzetraffic
8. Selectthearea
9. Selectthesite
10. Projectretailsales

GoorNoGoDecision
15

10/3/2011

Understand Retailers Preferred Customer Profiles

Knowthepreferredcustomer
profile fortheretailersyouare
targetingforrecruitment.
Population:
A
Age:
Gender:
Household:
Income:
Education:
Employment:

Other:

Minimumof150,000inthe
tradearea
M di
f 46
Medianageof46
80 90%arefemale
38%havechildren
Medianincomeof$55,000
43%havecompletedcollege
Morethan50%areemployedin
professionalormanagerial
positions
Understanddifferencebetween
priceandvalue

16

Understand Retailers Purchasing Cycles

Apurchasingcycleisthefrequencywith
whicharetailitemisordered
hi h
t il it
i
d d orpurchased
h d
byacustomer.
PizzaHut:
Wendys:
Kroger:
Walgreens:
RackRoomShoes:
WalMart:

Onetripeverythreeweeks
Weeklyorbiweeklyvisits
Everyweek
Refillprescriptionsoncepermonth
Newpairofshoesthreetimesperyear
Weeklyorbiweeklyvisits
17

Understand Retailers Essential

Location Factors

Visibility
Accessibility
RegionalExposure
PopulationDensity
PopulationGrowth
OperationalConvenience
Safety&Security
AdequateParking
AdequateSignage

Alocation/sitemusthaveeach
factorinorderforaretailerto
besuccessful.

18

10/3/2011

Visibility

Retailersconsidersitesthatcustomers
canseefromasfarawayaspossible.

19

Accessibility
Retailerslookforeasy,ampleand
clearlymarkedentranceexitsfrom
bothdirectionsoftraffic.
Basedonroadsystems,traffic
patternsandcustomerneeds,one
sideofthestreetmaybemore
importantthantheother.
GroceryStores:
McDonalds:
Starbucks:
PizzaHut:
DunkinDonuts:

Preferthegoinghomesideoftheroad
Prefersgoingtoworksideoftheroad
Prefersgoingtoworksideoftheroad
Prefersthegoinghomesideoftheroad
Prefersgoingtoworksideoftheroad
20

Accessibility
Knowthedifferencebetweenfarsideandnearsidecorners

GOOD

CAUTION!
21

10/3/2011

Regional Exposure

Retailerspreferto
l t
locateonaregionalroad:
i
l
d

Itiswiderthananeighborhoodroad
Itcarriesalotoftraffic
Ithasconsistenttrafficthroughoutthedayandnight
Itiswelllitatnight
Itconnectssubmarketsandothercommunitiesandtowns
Itallowsdriverstocovermoredistanceinashortertime
Ithascommercialactivityonbothsidesofthestreet
Itcarriesmorework/commuterandlongdistancetraffic
thanlivingtraffic

Retailerswant
theroadsto
beconnectors
tomultiple
population
bases
22

Population Density & Growth

RetailersTargetAreaswithHighPopulationDensity
Highpopulationdensityisvitaltoretailersregardlessof
the perfect demographic and psychographic profiles that
theperfectdemographicandpsychographicprofilesthat
mayfityourbusiness

RetailersSelectAreaswithPopulationGrowth
Growthmustbeobviousnow withpotentialfornewgrowth
Retailersnolongerdependonpromisednewgrowth

23

Safety & Security

MakeCertain
itisSafeand
Secure
Crimeorthe
perceptionofcrimeis
amajorissue

24

10/3/2011

Parking
ParkingisaPriorityforallRetailers
Canbethemostimportantlocationfactor
Makecertainthereisanadequatenumberofparkingspaces
Bewaryofparkingintensivecotenantssuchascinemas,restaurants,
fitnessclubsandentertainment/bowlingcenters

CustomersWill:
Customers Will:
Parkasclosetoastoresentranceaspossible
Bereluctanttowalk,regardlessoftheweather
Seekawelllitarea
Refusetoparkinaremoteordarkarea

Limitedparkingisthesinglemostlimitingfactorto
aretailerssuccess.
25

Signage
Retailerswouldliketohave
thebiggest,tallest,most
visiblesigninthearea.

26

Understand that Community Development

Precedes Economic Development
FirstImpressionsareImportant

CommunityAppearance
PrideofOwnership(Residential&Commercial)
FunctionalInfrastructure
EvidenceofCrime
Codes&CodeEnforcement

DowntownVitality

RetailersLooktoMinimizeRisk
andMaximizeProfit.

27

10/3/2011

Understand the Importance of

Alcohol Sales to Restaurants
MoralIssueor
EconomicDevelopmentIssue?
Extremelyimportanttorestaurantrecruitment
Alcoholsales:1020%ofarestaurantstotalsales
Potentialeconomicimpactissignificant

28

Other Important Factors

Understandyourcommunity'srelationshiptosurrounding,
competingcommunities.
Understandtheroadsystemswithinyourcommunity.
Understandthetrafficpatternsofpeoplewholive,work,
playandtravelinyourcommunity.
Understandthefactorsthatcausepeopletomoveincertain
directions.
29

Understand Retailers Market Penetration Strategy

Itisvitaltounderstandtheimportanceofstorespacingandretailers
macrotomicro approachtositeselection.

Narrowing
f
fromArea
A
Analysis
ToSite
Selection

30

10

10/3/2011

Submarket Analysis

31

Understand Your Communitys Traffic Patterns

LivingTraffic
Work/CommuterTraffic
LongDistanceTraffic

32

Understand Retailers Want To Locate in

Communities That Offer Residents Everything.
DowntownDistrict|BusinessActivity|Commerce|SocialLife|Entertainment

33

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10/3/2011

Understand Retailers Look

For Problem Indicators
Topographicalissues
Downwarddemographictrends
Excessvacancies
Emergingretailclusteringinotherareas
Lackofcityplanning&codeenforcement
Lackofinvestment
Evidenceofcrime
StrugglingDowntownDistrict

Lackofcodeenforcementis

#1problem inmost
communities.
34

Understand Your Communitys

Retail Trade Area
ARetailTradeArea isthe
largestdistanceconsumersare
willingtotravel topurchase
retailgoodsandservices.
Thesizedependsonthe
varietyofgoodsandservices
offered inyourcommunityand
proximitytoretailinnearby
competingcommunities.

35

Understand Retail Trade Area Accuracy

Anaccurateretailtradeareaisthe
foundationaltoolforaretail
recruitmentstrategy.

Makecertainitisaccurateby:
Meetingwithorinterviewingretailers
Interceptingsurveycustomers
Confirmingwithlicenseplatesurvey

36

12

10/3/2011

Do Not Rely on Computer-Generated

Retail Trade Areas
Theydonotconsidermanyvitalfactors.Inmostinstances,theyarenotaccurate.

Radial:
30,072
population

37

Do Not Rely on Computer-Generated

Retail Trade Areas
Drivetimes haveapplicationindenselypopulatedurbanareas.

Drivetime:
40,190
population

38

Retailer-Defined Retail Trade Areas Are More

Accurate

Retailer
Defined
91,029
population

39

13

10/3/2011

Sell Your Community as a

Retail Trade Area Population

Marketyourcommunitytoretailersandrealestatedevelopersasaretail
tradeareapopulation,notacommunitypopulation.
Acommunitypopulationof7,500maynotpeaktheinterestofasite
selector,butaretailtradeareaof60,000will.
Spendthetimeandresourcestodetermineyourcommunitysretailtrade
area.Youwantittobeaslargeaspossible,butitmustbeaccurate.
40

Understand Retail Trade Area Scale

Insomeinstances,youneedtodetermineyourcommunitysprimary
and secondarytradeareas.

PrimaryRetailTradeArea
Consumerswhoarelikelytoshopinyourcommunitymore
thanonceperweek(whereretailersderiveapproximately80
85%oftheirbusiness).
85% of their business)

SecondaryRetailTradeArea
Consumerswhoarelikelytoshopinyourcommunityonce
perweek,oronceeverytwoweeks(whereretailersderive
approximately15 20%oftheirbusiness).

41

Benefit of Secondary Trade Area

San Saba, Texas
CommunityPopulation:2,536
PrimaryRetailTradeAreaPopulation:8,788
SecondaryRetailTradeAreaPopulation:47,539
AlcoStoresconsideredthesecondaryretail
ttradeareapopulationinaffirmingtheir
d
l ti i ffi i th i
decisiontobuild/openanew15,000sq.ft.
unitinSanSaba.

42

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10/3/2011

Understand Data Sources

Utilizearetailindustryacceptednational
demographerforallofyourcommunitys
quantitativeinformation.
Dataderivedlocallymaybemorecurrent
andaccurate;unfortunatelynationaland
regionalretailershavebeenslowto
embraceitsworth preferringtouse
unbiasedthirdpartyproviders.

43

Understand Your Residents

Psychographicsandlifestyle
segmentationwillbecomeincreasingly
importanttoretailersastheyseekto
perfectthesiteselectionprocess.
However,donotputprimaryfocuson
theirimportance.Althoughvaluable,
lifestylesegmentationtodayisused
moreforstoremerchandisingthansite
identificationandselection.

44

Take Advantage of Networking Opportunities

AttendInternationalCouncilofShoppingCenters(ICSC)TradeShows:
1.
2.
3.
4.

Haveaprofessionalpresence
Haveaccuratedata
Createatargetlistofthoseretailersyouwouldliketomeetandset
upappointments60daysinadvance
MakenewcontactswithretailersexpandingintoTexasandnurture
therelationships

LasVegasReCon
May2023,LasVegas,NV

ChicagoDealMaking
5 6October,2011
45

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10/3/2011

Consider Having a Booth at the Trade Shows

Informationanddatamustbeconcise,
relevantandaccurate
Haveaminimumoftwopeopleattheshow;
onepersontoattendtheboothandoneto
seekoutprospects
Haveastrategicplanformakingnewcontacts
Setupappointments.
Haveattainablegoalsandrealistic
expectations

Hireagraphicdesignfirm;
designfirstclasstradeshow
boothandmarketingcollateral:
Bayley/Brooke
[email protected]
www.bayleybrooke.com
877.854.1460
46

Role of Downtown in Retail Recruitment

Donotoverlookyourdowntownarea,its
potentialanditsimpactonnationalandregional
retailerdecisionmaking.

47

Work with Community Stakeholders

Understandyourcommunitys
retailrecruitmentpotentialand
worktomanagetheexpectations
ofyourboardandthe
community.
Confidentialityamongstaffand
b d
boardmembersisimportant.
b i i
t t

48

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10/3/2011

Get a Birds Eye Perspective

Haveacurrentaerialphotographof
yourcommunityandsurroundingarea
highlighting:
CitylimitandETJboundaries
Majorthoroughfares
Majorretailers/developments
Planned/plattedresidentialdevelopments
Schools/universities
Planned/proposedroads
Parks,hospitals
Majoremployers/businessparks
Utilizewhitespaceonback:
Areamap,communityprofile,demographicprofile,
newdevelopmentrenderings/siteplans,zoningmap
andsitesforsalesorlease(seekcostsharingfrom
brokersanddevelopers)
49

Practice Recruitment Priorities and Process

Sellyour
community
first,thensell
thesites.
h i

Goal:Gettheretailertothecommunity.
Haveknowledgeofsitesthatmayinteresttheretailerpriorto
makingthecall.
50

Create a Supportive Consensus

A ti l t
Articulateyourcommunitysretail
it
t il
strategytoeveryone,everywhere.
Makecertainindependentbusinessesunderstandtheoverallstrategy
andhowtheyfitin.Makeeveryattempttogettheirbuyin.
RuleofThumb:
Iftheyarenotinonit anduponit theywillbedownonit.
51

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10/3/2011

Understand Incentives and Their Roles

Haveanunderstandingofwhatincentivescommunitiesyoursize
areofferingretailersanddevelopers.
Becarefulaboutenteringtheincentivesgame.
52

Maintain Developer Relationships

Dontoverlookthepossibleneedforrealestatedeveloperidentification
andoutreachaspartofyoureconomicdevelopmentstrategy.

Havemarketing
materialsthat
educate
developerson
specificsite
opportunitiesin
your
community.

53

Maintain Broker Relationships

Knowtherealestatebrokerswhoareactiveinyourarea:
Haveinhousebrokerfunctions
Makeiteasyforbrokers:theyaretransactionoriented
Considerabustourtoshowcaseproperties;seeksponsorshipassistance
frombrokers,developers,titlecompanies,etc.
54

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10/3/2011

Tell the Same Story

Makecertainthatallrealestate
brokers,developersandinvestors
whoareactiveinyourcommunity
usethesamemarketinformation.

RetailTradeArea
RetailTradeAreaPopulation
D
Demographics
hi
Psychographics
Retailergapinformation
Trafficcounts

Thiseliminatesconfusionand
minimizesquestions.

55

Be Proactive
PerformaSWOTAnalysisofyourcommunity
fromaretailersperspective.
Knowyouradvantagesandunderstandyour
challenges.
Add
Addresschallengesbycomingupwithan
h ll
b
i
ith
actionabletodoplanbasedonpriority.
Retailers,developersand/orinvestorswantto
knowthatsomethingisbeingdone.
Retailers,developersand/orinvestorslookfor
stableorimprovingcommunitieswheretheir
riskisminimized.
56

Know Your Competition

Knowyourcompeting
communitiesadvantagesand
disadvantages.
Knowthelocationoftheir
retailsubmarkets.
Befamiliarwiththeirretail
recruitmentprograms.
Knowhowyourcommunity
stacksupagainstcompeting
communitiesintermsof
socioeconomicfactors.
57

19

10/3/2011

Nurture Existing Retailer Relations

Havearetailretentionprogram.
Networkwithretailermanagersasoftenas
possible They can be your best ambassadors
possible.Theycanbeyourbestambassadors
whenprospectiveretailersareinyour
community.

DropinRegularly
ScheduleBreakfasts
Invitethemtoretreatsandboardmeetings
Appointthemtocommittees/boardpositions
58

Develop a Community Resource Guide

Documentintendedforretailersanddevelopersinterestedinyourcommunity.Includes
staffresourcelisting,zoningclassifications,codes,plannedinfrastructure,etc.
59

Know Your Communitys Daytime Employment

Haveknowledgeofyourareadaytimeemploymentandrecognize
itsimportancetorestaurants.

Restaurantsmusthave
healthydinnerandlunch
b i
businessinordertobe
i
d t b
successful.

60

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10/3/2011

Plan for Development/Redevelopment

Considerhighestandbestuseofexistingpropertiesand
developments,aswellasgreenfieldsites.

61

Identify Retail Opportunities

Measureconsumerdemandandretailopportunitybyperforminga
RetailGapAnalysis.

62

Understand the Downtown Development Model

63

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10/3/2011

Understand that a Community

Must Have a Downtown Focus

Smallercommunitiesmustworkhardertogetretailersattention
Donotabandondowntown
Maintainstrongresidentialsupportarounddowntown
Haveadowntownredevelopmentstrategy
Downtownshavebecomeentrepreneurdriven
Entrepreneurismincreasesduringeconomicdownturns
64

Be Creative

ChiropractorUpstairs
CoffeeShopDownstairs

StarbucksinTexasFuneralHome

65

Downtowns Must Mean Business

Mostdowntownbusinessesoperateas
ahobbyandnotaforprofitbusiness.
Ifoperatinghoursare9amto4pm,the
markettheyarereachingisthe
unemployed.
Understand that most downtown
Understandthatmostdowntown
businessesareundercapitalizedand
needassistance withcustomerservice,
merchandisingandgeneralbusiness
practices.
Gonextdoortofindprospects
Traveltocommunitiesinyourareaandtakeacloselookattheir
downtowns,specificallyindependentbusinessesthatappeartobedoing
well.Theymaybeinterestedinopeninganewunitinyourcommunity.

66

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10/3/2011

Make It Personal

Understandthatpersonal
contactsarethemost
importantthinginretail
recruitment.
Inthisdayofsocial
networking(email,texting)
wehaveforgottenhow
importantitistopickupthe
telephoneandmakeacallor
sendahandwrittennote.
Itworks!
67

Assume Retailers
are Doing Their Research on Your Community

Uploadallretailinformationon
yourwebsiteandmakecertainitis
accurate,currentandeasytofind.
Thisisbecomingmoreandmore
important.
Oftentimes,retailersand
developerswillvisityour
communitywithoutyour
knowledge.
68

Retail Recruitment is a Process

And Retailers Must be Recruited
Bepersistent anotodaymightbeapossible
maybeinsixmonths.

69

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10/3/2011

Moving Beyond Data

MovingBeyondData
www.theretailcoach.net
[email protected]

662.844.2155
70

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