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RETAIL MARKET STUDY and STRATEGY City of Tulsa, Oklahoma THIS PAGE INTENTIONALLY LEFT BLANK Acknowledgements

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RETAIL MARKET STUDY and STRATEGY City of Tulsa, Oklahoma THIS PAGE INTENTIONALLY LEFT BLANK Acknowledgements RETAIL MARKET STUDY AND STRATEGY City of Tulsa, Oklahoma THIS PAGE INTENTIONALLY LEFT BLANK Acknowledgements City of Tulsa Mayor’s Office Kian Kamas, Chief of Economic Development Nick Doctor, Chief of Community Development & Policy Tulsa City Council Vanessa Hall-Harper, District 1 Jeannie Cue, District 2 Anna America, District 7 Planning Department Dawn Warrick, AICP, Planning Director Travis Hulse, AICP, CFM, Planner III, Project Manager Addison Spradlin, Planner I Emma Oakes, Planner I Mayor’s Office of Economic Development Jim Coles, Economic Development Director Mike Dickerson, Economist Alex Nongard, Economic Development Specialist Spencer Mitchell, Economic Development Specialist Economic Development Commission Elliot Nelson, Chairman Warren Ross, Vice-Chairman Deborah Carr, Commissioner Cassie Reese Tipton, Commissioner Shelley Cadamy, Commissioner Elian Hurtado, Commissioner H. Michael Kimbrill, Commissioner George Shahadi, Commissioner Allen Jenkins, Commissioner Tom Schroedter, Commissioner Mark Tedford, Commissioner Steering Committee Casey Stowe, Nelson + Stowe Tim Dreiling, Fleet Feet Andy Cagle, Inner Circle Vodka Bar Andrew Coffey, Arvest Bank Rose Washington, Tulsa Economic Development Kathy Duck, Tulsa Regional Chamber Ben Ganzkow, CB Richard Ellis Carla Grogg, Grogg’s Green Barn Prepared by Place Dynamics LLC 2019 THIS PAGE INTENTIONALLY LEFT BLANK CONTENTS Contents Introduction and Summary ........................................................................................................................... 1 Our Purpose ............................................................................................................................................. 2 Vision Tulsa ............................................................................................................................................. 2 Summary .................................................................................................................................................. 2 Understanding the Current Retail Environment ............................................................................................ 4 The Big Picture ......................................................................................................................................... 5 Sales Trends and Spending Patterns .................................................................................................... 5 Income and the Recession ................................................................................................................... 6 Aging of the Population ......................................................................................................................... 6 The Shift to Thrift .................................................................................................................................. 6 Growth Elsewhere ................................................................................................................................ 7 Impact of Internet Sales ........................................................................................................................ 7 Changes in the Retail Environment .......................................................................................................... 8 Emerging Issues in the Retail Sector .................................................................................................... 8 The Outlook for Tulsa ......................................................................................................................... 11 Tulsa’s Retail Environment ........................................................................................................................ 13 Layout of the City’s Commercial Districts ............................................................................................... 14 Retail Hierarchy .................................................................................................................................. 14 The Impact of Dollar Stores ....................................................................................................................... 18 Dollar Stores in the Tulsa Area ............................................................................................................... 19 The Concern with Dollar Stores .............................................................................................................. 20 Benchmarking Food Sales .................................................................................................................. 21 The Cash Economy ................................................................................................................................... 22 Understanding the Cash Economy ......................................................................................................... 23 Methodology for Estimating the Cash Economy ..................................................................................... 23 Tools and Strategies for Retail Economic Development ............................................................................. 25 Retail Economic Development ............................................................................................................... 26 Retail Incentive Policy ......................................................................................................................... 26 Retail Development Tools ................................................................................................................... 26 Retail Development Strategies ............................................................................................................ 27 Program Applicability to Study Areas ..................................................................................................... 28 Study Areas ............................................................................................................................................... 29 Pine and Peoria .................................................................................................................................... 31 Pine and Sheridan ................................................................................................................................ 43 21st Street Corridor ............................................................................................................................... 57 Downtown ............................................................................................................................................ 71 Route 66 East ...................................................................................................................................... 87 Tulsa Promenade ............................................................................................................................... 101 51st and Union .................................................................................................................................... 115 71st and Peoria ................................................................................................................................... 127 51st and Memorial ............................................................................................................................... 141 71st Street Corridor ............................................................................................................................. 153 International District ........................................................................................................................... 167 River West / Eugene Field .................................................................................................................. 181 36th Street North ................................................................................................................................. 195 Appendix A: Benchmark Data for Tulsa's Retail Industry ........................................................................ 209 Appendix B: Survey Overview ................................................................................................................ 229 Appendix C: Summary Table of Study Area Characteristics ................................................................... 239 INTRODUCTION AND SUMMARY Nationwide and in Tulsa, the retail industry is going through a period of transformation. 1 OUR PURPOSE Retail is a competitive industry subject to constant change as businesses and developers seek to out-position each other. Those changes can be manifested in the rising and falling fortunes of locations, formats, merchandising strategies, channels, and other practices. There are occasional periods in which those changes are rapid and disruptive. The emergence of catalog and general merchandise chains in the late 1800’s (Montgomery Wards, Woolworth’s, Sears, J.C. Penney); the shift to suburbs and hollowing out of downtowns in the postwar era, and the rise of discount stores, supercenters, and specialty big box chains in the 1980’s and 1990’s are examples. The start of the Great Recession in 2007 is seen as the beginning point for another major transitioning, this time to an industry with a smaller footprint, functioning much differently from how it has in the recent past. It is in this environment that the City of Tulsa seeks to understand, anticipate, and plan for its retail environment in a way
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