Professional Documents
Culture Documents
Retail Trends Strategies
Retail Trends Strategies
Opportunity 2011-2012:
Presentedby:
1
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.
10/3/2011
TheUnitedStatesisquicklybecomingaserviceeconomy:ifyou
dontunderstandthis andcapitalizeonit yourcompeting
communitieswill.
4
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
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
Retailersare
Lookingfor
Opportunities
NOTJustSites
12
10/3/2011
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
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
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
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
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
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
RetailersTargetAreaswithHighPopulationDensity
Highpopulationdensityisvitaltoretailersregardlessof
the perfect demographic and psychographic profiles that
theperfectdemographicandpsychographicprofilesthat
mayfityourbusiness
RetailersSelectAreaswithPopulationGrowth
Growthmustbeobviousnow withpotentialfornewgrowth
Retailersnolongerdependonpromisednewgrowth
23
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
CommunityAppearance
PrideofOwnership(Residential&Commercial)
FunctionalInfrastructure
EvidenceofCrime
Codes&CodeEnforcement
DowntownVitality
RetailersLooktoMinimizeRisk
andMaximizeProfit.
27
10/3/2011
28
Understandyourcommunity'srelationshiptosurrounding,
competingcommunities.
Understandtheroadsystemswithinyourcommunity.
Understandthetrafficpatternsofpeoplewholive,work,
playandtravelinyourcommunity.
Understandthefactorsthatcausepeopletomoveincertain
directions.
29
Narrowing
f
fromArea
A
Analysis
ToSite
Selection
30
10
10/3/2011
Submarket Analysis
31
32
33
11
10/3/2011
Lackofcodeenforcementis
#1problem inmost
communities.
34
35
Anaccurateretailtradeareaisthe
foundationaltoolforaretail
recruitmentstrategy.
Makecertainitisaccurateby:
Meetingwithorinterviewingretailers
Interceptingsurveycustomers
Confirmingwithlicenseplatesurvey
36
12
10/3/2011
Radial:
30,072
population
37
Drivetime:
40,190
population
38
Retailer
Defined
91,029
population
39
13
10/3/2011
Marketyourcommunitytoretailersandrealestatedevelopersasaretail
tradeareapopulation,notacommunitypopulation.
Acommunitypopulationof7,500maynotpeaktheinterestofasite
selector,butaretailtradeareaof60,000will.
Spendthetimeandresourcestodetermineyourcommunitysretailtrade
area.Youwantittobeaslargeaspossible,butitmustbeaccurate.
40
PrimaryRetailTradeArea
Consumerswhoarelikelytoshopinyourcommunitymore
thanonceperweek(whereretailersderiveapproximately80
85%oftheirbusiness).
85% of their business)
SecondaryRetailTradeArea
Consumerswhoarelikelytoshopinyourcommunityonce
perweek,oronceeverytwoweeks(whereretailersderive
approximately15 20%oftheirbusiness).
41
42
14
10/3/2011
Utilizearetailindustryacceptednational
demographerforallofyourcommunitys
quantitativeinformation.
Dataderivedlocallymaybemorecurrent
andaccurate;unfortunatelynationaland
regionalretailershavebeenslowto
embraceitsworth preferringtouse
unbiasedthirdpartyproviders.
43
Psychographicsandlifestyle
segmentationwillbecomeincreasingly
importanttoretailersastheyseekto
perfectthesiteselectionprocess.
However,donotputprimaryfocuson
theirimportance.Althoughvaluable,
lifestylesegmentationtodayisused
moreforstoremerchandisingthansite
identificationandselection.
44
Haveaprofessionalpresence
Haveaccuratedata
Createatargetlistofthoseretailersyouwouldliketomeetandset
upappointments60daysinadvance
MakenewcontactswithretailersexpandingintoTexasandnurture
therelationships
LasVegasReCon
May2023,LasVegas,NV
ChicagoDealMaking
5 6October,2011
45
15
10/3/2011
Informationanddatamustbeconcise,
relevantandaccurate
Haveaminimumoftwopeopleattheshow;
onepersontoattendtheboothandoneto
seekoutprospects
Haveastrategicplanformakingnewcontacts
Setupappointments.
Haveattainablegoalsandrealistic
expectations
Hireagraphicdesignfirm;
designfirstclasstradeshow
boothandmarketingcollateral:
Bayley/Brooke
[email protected]
www.bayleybrooke.com
877.854.1460
46
Donotoverlookyourdowntownarea,its
potentialanditsimpactonnationalandregional
retailerdecisionmaking.
47
48
16
10/3/2011
Sellyour
community
first,thensell
thesites.
h i
Goal:Gettheretailertothecommunity.
Haveknowledgeofsitesthatmayinteresttheretailerpriorto
makingthecall.
50
A ti l t
Articulateyourcommunitysretail
it
t il
strategytoeveryone,everywhere.
Makecertainindependentbusinessesunderstandtheoverallstrategy
andhowtheyfitin.Makeeveryattempttogettheirbuyin.
RuleofThumb:
Iftheyarenotinonit anduponit theywillbedownonit.
51
17
10/3/2011
Haveanunderstandingofwhatincentivescommunitiesyoursize
areofferingretailersanddevelopers.
Becarefulaboutenteringtheincentivesgame.
52
Havemarketing
materialsthat
educate
developerson
specificsite
opportunitiesin
your
community.
53
Knowtherealestatebrokerswhoareactiveinyourarea:
Haveinhousebrokerfunctions
Makeiteasyforbrokers:theyaretransactionoriented
Considerabustourtoshowcaseproperties;seeksponsorshipassistance
frombrokers,developers,titlecompanies,etc.
54
18
10/3/2011
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
19
10/3/2011
Havearetailretentionprogram.
Networkwithretailermanagersasoftenas
possible They can be your best ambassadors
possible.Theycanbeyourbestambassadors
whenprospectiveretailersareinyour
community.
DropinRegularly
ScheduleBreakfasts
Invitethemtoretreatsandboardmeetings
Appointthemtocommittees/boardpositions
58
Documentintendedforretailersanddevelopersinterestedinyourcommunity.Includes
staffresourcelisting,zoningclassifications,codes,plannedinfrastructure,etc.
59
Restaurantsmusthave
healthydinnerandlunch
b i
businessinordertobe
i
d t b
successful.
60
20
10/3/2011
Considerhighestandbestuseofexistingpropertiesand
developments,aswellasgreenfieldsites.
61
62
63
21
10/3/2011
Smallercommunitiesmustworkhardertogetretailersattention
Donotabandondowntown
Maintainstrongresidentialsupportarounddowntown
Haveadowntownredevelopmentstrategy
Downtownshavebecomeentrepreneurdriven
Entrepreneurismincreasesduringeconomicdownturns
64
Be Creative
ChiropractorUpstairs
CoffeeShopDownstairs
StarbucksinTexasFuneralHome
65
66
22
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
69
23
10/3/2011
662.844.2155
70
24