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La Villita, San Antonio Retail Management Study

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La Villita, San Antonio Retail Management Study La Villita, San Antonio Retail Management Study November 2008 In Association with URBAN y MARKETING y COLLABORATIVE y a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: [email protected] 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254 La Villita San Antonio Retail Management Study TABLE OF CONTENTS Executive Summary........................................................................................................................................................................................................1 1.0 Introduction...........................................................................................................................................................................................................4 Background.........................................................................................................................................................................................................5 Previous Studies................................................................................................................................................................................................ 7 Study Scope ........................................................................................................................................................................................................9 2.0 Issues Evaluation ................................................................................................................................................................................................10 2.1 Retail Mix and Merchandising..............................................................................................................................................................10 2.2 Operations................................................................................................................................................................................................17 2.3 Physical Design..................................................................................................................................................................................... 20 2.4 Financial Performance..........................................................................................................................................................................21 2.5 Market Penetration...............................................................................................................................................................................25 2.6 Parking .....................................................................................................................................................................................................26 2.7 Hours of Operation ...............................................................................................................................................................................27 2.8 Marketing and Promotions..................................................................................................................................................................27 2.9 Management............................................................................................................................................................................................29 2.10 Summary................................................................................................................................................................................................. 39 3.0 Action Items.........................................................................................................................................................................................................40 3.1 Vision.........................................................................................................................................................................................................40 3.2 Management............................................................................................................................................................................................40 3.3 Retailer Mix .............................................................................................................................................................................................43 3.4 Marketing, Promotions, and Special Events...................................................................................................................................55 3.5 Financial.................................................................................................................................................................................................. 58 4.0 Process................................................................................................................................................................................................................60 APPENDICES URBAN y MARKETING y COLLABORATIVE y a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: [email protected] 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254 Executive Summary EXECUTIVE SUMMARY La Villita represents a wonderful historic center in San Antonio. The well preserved neighborhood on the banks of the San Antonio River has become known as a working artisan and craftspeople area that serves local residents and tourists. The biggest challenges are to overcome its small size and relative hidden location to gain increased accessibility, visibility, and critical mass of retail that will attract and retain people. The largest obstacle to La Villita’s success is the current inconsistent experience that is portrayed. With such a small retail area, there is an overwhelming need for the La Villita experience to be focused, intensified, and consistent. Failure to provide this type of experience will leave the La Villita visitor dissatisfied. A review of the opportunities and issues includes: ` Retail mix and merchandising: due to the small amount of retail space, every business must count towards fulfilling the vision. The conflicting identity and inconsistent quality and merchandising of the retailers must be addressed ` Operations: buildings and plazas are in need of significant improvements. City is in the process of addressing infrastructure needs. ` Physical design: the physical design lends to the isolated development that is either very busy or empty ` Financial performance: La Villita is not meeting its sales requirements, rent is lower than market levels, there are insufficient resources to effectively manage, and lease conditions are difficult to enforce ` Parking: there is not enough dedicated parking for La Villita so it must look to develop stronger partnerships with nearby parking facilities ` Hours of operation: inconsistent ` Marketing and promotions: the budget is too small to effectively be competitive with other San Antonio venues and it should not be carried out by Tenant’s Association as their focus should be on their retail operations rather than marketing La Villita ` Management structure: a review of city managed, non-profit trust, and private sector management options produced the following results: 1 Urban Marketing Collaborative Team La Villita Retail Management Study Executive Summary Management Alternatives City Operations Non-profit Trust Private Sector Management Rental ` Can have the greatest ` With enough ` Best chance to maximize Revenue risk of under-achieving independence, can rental income Potential because the City can find match private sector’s it difficult to push for ability to achieve market market rents rents Costs ` Can have a hard time ` May have the same ` Best chance to achieve minimizing costs due to problems as the City minimum operating costs lack of incentive for cost operations and conflicts reduction over responsibility (e.g., maintenance, marketing) Administrative ` Has the potential to be ` Can match the private ` Likely to be the leanest Efficiency less efficient than other sector because the Trust organization options, but this depends is focused on La Villita heavily on the organizational structure and individuals Net Income to ` Paradoxically can ` Can produce the same ` Can produce the lowest City generate most cash to result as the City payment to the City the City because no operations unless the because the private sector funds are retained by the Trust retains significant operator requires profit and Trust or private sector reserves is essentially only paying rent for the building Character of ` Should be little risk of ` Probably the same as ` Greater risk of gradual shift La Villita gradual erosion of La under City operations in the retailer mix to Villita character due to enhance revenues but retailer mix problems and possibly at the expense of should produce the local unique character. optimal community public Probably more regimented space in terms of the public’s use of the space Vision The vision for La Villita is to become a historically unique artisan and crafts retail center in Downtown San Antonio. All retail and events will be geared to promoting this image within San Antonio and the tourism market. La Villita will be able to combine
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