FLORIDA MAIN STREET TIPS FOR BUILDING A HEALTHIER BUSINESS MIX CONTACT INFORMATION TIPS FOR BUILDING A HEALTHIER DOWNTOWN 1. Commercial Assessment. 2. Understanding Consumer. 3. Developing a Strategic Plan. 4. Recruiting from within. 5. Funding options. Hilary Greenberg 6. Business Recruitment. 704.366.1541 [email protected] MARKET ANALYSIS FLORIDA MANAGERS WORKSHOP Retail Retail Supply MORNING SESSIONS: Demand (Square Feet) (Square Feet) Survey and Retail Mix Focus • Evaluating your Downtown. Analysis Group Research Competitiveness STRATEGIC Trade Area of Existing PLAN Demographic • Understanding your Market. Trade Area and Lifestyle Stores Analysis Competitiveness Analysis of Non- • Developing a Strategic Plan of Existing Local Market Regional Stores Consumer Segments Behavior in (Tourists, Workers) Store Category JUNE 2014 FLORIDA MANAGERS WORKSHOP DIFFICULT TIMES AFTERNOON SESSIONS: • Recruiting businesses from within. • Financial incentives and funding for small businesses. • Business Recruitment strategies and tips. NEW REALITY NEW REALITY DEMOGRAPHIC: REAL ESTATE: • Population shift to • Changing credit larger cities and financing • Flat growth rate • Fewer tenants • More diverse • Declining rents markets • Delayed projects • Volatile economy • Limited capital • Changing improvements consumer trends NEW REALITY TECHNOLOGY: • Rural high speed internet • Web savvy customers • Smart phone coupons • Mass Mingling JUNE 2014 OPPORTUNITY FOR DOWNTOWN Downtown Is More Important Than Ever Trade area boundaries are blurring. Employment hubs and catalyst for local jobs. − Spaces for entrepreneurs. − Access to labor force. More start-ups. − Physical proximity for face-to-face meetings. − Convenient location. New tenants as site criteria changes. Retail sales are important revenue for Govt. and offset declines in Residential tax base. Increased sales from Local expenditures create multiplier effect. multi-channel selling. Attract younger market segments. New development through creative partnerships. TIPS FOR BUILDING A WHOWHO ARE YOURTHE CUSTOMERS? CUSTOMERS? HEALTHIER DOWNTOWN 1. How Well Do You Understand the Customer. 2. Evaluating Downtown’s Business Base. 3. Developing a Strategic Plan 4. Recruiting from within 5. Funding options 6. Business Recruitment MARKET ANALYSIS UNDERSTAND YOUR MARKET • Trade area Trade area defines retail opportunities • Market profile Disneyworld • Lifestyle segments Destination/Regional – 30 + min Department Store/Big Box Retail • Sales gaps/retail Comparison/General – 15-30 min demand Specialty Food Store Convenience/Neighborhood – 5-10 min. • Market Drugstore opportunities JUNE 2014 TRADE AREAS TRADE AREA Watch for physical barriers and historical commuting patterns SURVEYS TO CLARIFY ZIP CODE SURVEY BOUNDARIES MARKET PROFILE TRADE AREAS Use free report to draw boundaries JUNE 2014 MARKET PROFILE MARKET TRENDS Gen Y- 70 M people (ages10-29) DEMO & • Income Key Gray Wave -77 M people (ages 55-69) ECONOMIC • Age PROFILE Demographic Increasingly diverse households • Race trends • Occupation • Wages • Employment MARKET TRENDS • FL getting younger and more diverse. • Workers are delaying retirement. • More multi- generational families. • Younger, educated prefer Cities- Downtowns. • More jobs from immigrants. MARKET ASSESSMENT MARKET ASSESSMENT Use charts and Use charts and graphs to graphs to clarify data clarify data JUNE 2014 MARKET ASSESSMENT CONSUMER TRENDS Free Data Reports THE “FRUGAL” CONSUMER THE “GREEN” CONSUMER THE “LOCAL” CONSUMER THE “LOCAL” CONSUMER JUNE 2014 THE “CHARITABLE” CONSUMER CONSUMER ATTITUDE Surveys: Consumer Intercept Business Focus groups Interviews LIFESTYLE TRENDS MARKET ASSESSMENT • Religion Lifestyle • Ethnicity trends • Employment • Income • Geography LIFESTYLE SEGMENTS MARKET ASSESSMENT LFESTYLE CATEGORIES Midlife Junction Enterprising Professinal Old and Newcomers Rust Belt Tradition Tertiary trade area More Cozy and comfortable Secondary trade area Purchase Primary trade area segments = Aspiring Families Milk and Cookies market more niche Boomburgs niche businesses Up and Coming 0.00 5.00 10.00 15.00 20.00 25.00 PERCENTAGE OF HOUSEHOLDS data JUNE 2014 MARKET ASSESSMENT RETAIL SALES GAP RETAIL SALES • Trends • Comparisons • Competition • Sales Gaps • Downtown Share RETAIL SALES LEAKAGE SALES GAP ANALYSIS POTENTIAL SALE - ACTUAL SALES = SALES LEAKAGE OR (SURPLUS) Areas with malls or tourist attractions have • Potential sales = sales surplus average HH expenditure multiplied by # of HH in trade area • Actual Sales = Florida Dept of Revenue or Data Co. Rural areas have sales leakage • Sales Surplus = When actual sales are greater than potential sales. • Sales leakage = Potential sales are greater than actual sales DOWTOWN SHARE RETAIL SALE ANALYSIS • Consumer Expenditure Survey POTENTIAL SALES • Claritas, ESRI (Data Company) • Sales Marketing’s Survey Of Buying Power ACTUAL SALES • Dept. of Revenue • Claritas, ESRI (Data Company) SALES PER • ULI ---Dollars-Dollars and Cents of Shopping SQUARE FOOT • http://www.uwex.edu/ces/cced/dma “HOW TO” • National Main Street Center PUBLICATIONS • State Main Street Program JUNE 2014 MARKET ASSESSMENT MARKET OPPORTUNITY • Demand by Purchase niches clusters sales leakage reports • Demand by store Or use templates categories r surplus • Specific stores STORE CATEGORY EXERCISE • Home Décor Total households 10,000 • Restaurant MARKET Average per HH sale $4,000 OPPORTUNITIES • Soft goods Furniture County actual sales $30M • Lifestyle store Downtown share of market 30% Average sales per foot $200 • Convenience Existing amount of space 7,500 ft. • Medical EXERCISE EXERCISE 1. Potential Downtown sales: 4. Downtown Share: County hh multiplied by State’s 10 million X 30%= 3 million average sale per hh 10,000 x 4,000 = 40 million 5. Downtown Sq. Ft.: 2. Actual sales: 30 million 3 million/$200 = 15,000 ft. 6. 15,000- 7,500 3. Sales Leakage = 40-30= 10M Downtown can support additional store. JUNE 2014 CONTACT INFORMATION TIPS FOR BUILDING A HEALTHIER BUSINESS MIX Hilary Greenberg 704.366.1541 [email protected] FLORIDA MANAGERS WORKSHOP FLORIDA MANAGERS WORKSHOP MORNING SESSIONS: AFTERNOON SESSIONS: • Evaluating your Downtown. • Recruiting businesses from within. • Financial incentives and funding for small • Understanding your Market. businesses. • Developing a Strategic Plan • Business Recruitment strategies and tips. MARKET ANALYSIS Retail Supply square ft. Retail Mix Analysis Assessment Competitiveness of Retail of Existing Opportunities Trade Area Stores Competitiveness of Existing Regional Stores Consumer Behavior in Store Category JUNE 2014 COMMON PROBLEMS 2. EVALUATING DOWNTOWN • Vacancies • Conditions • Deferred maintenance − Buildings − Streetscape • Sales-Rent-Value skewed − Environmental • Obsolete selling space − Regulatory • Underutilized upper floors − Social • Skewed retail mix • Real Estate • Few destination uses − Ownership • Underperforming retailers − Condition − Opportunities • Inconvenient parking • Business Mix • Unmotivated property owners − Function and use • Dysfunctional government − Location − Cluster • Business Viability BUILDING FAÇADE AND PHYSICAL CONDITIONS CONDITIONS Buildings: Facades Interiors STREETSCAPE STREETSCAPE JUNE 2014 COMMERCIAL ASSESSMENT • Crime • Homelessness • Building code • Zoning • Energy efficient • Walkability PUBLIC ATTITUDES CONDITIONS ASSESSMENT • Maps • Parking and traffic studies • Streetscape plans • Engineering studies • Consumer Intercept & Business survey • Facade renderings • Building inspection REAL ESTATE LOCATION • Availability • Price • Location • Condition • Ownership • Opportunities JUNE 2014 LOCATION CHALLENGES OPPORTUNITIES OPPORTUNITIES JUNE 2014 COMMERCIAL ASSESSMENT TYPES AND USES • Business Mix − Types of Use − Function − Location − Ownership − Target Customer − Business Cluster MOST COMMON BUSINESSES OWNERSHIP BY TYPE OF USE WITHIN .5-Miles OF TOWN • Locally-owned • Franchise • Chain • Start-up • Immigrant merchants • Part-time/hobby retailers Source: InfoUSA BUSINESS INVENTORY TYPES OF USES Downtown data base software JUNE 2014 TYPES OF CLUSTERS COMPETITIVE • TARGET MARKETS − Proximity • Jewelry − Demographic characteristic • Shoes − Lifestyle • Furniture − Employment • Pawn • CLUSTER • Nail − Compatible − Complementary − Competitive BUSINESS CLUSTERS COMPLEMENTARY Similar customers or complementary products • Shoppers goods • Government/legal • Home • Restaurants Bars and Entertainment • Wedding • Lifestyle retailers BUSINESS VIABILITY WARNING SIGNS • Rising vacancy rate • Operation/practices • Expenses>Cash flow • Ownership • Financing or credit issue • Financing • Employee turnover • Cash flow • Cutback in ads • Technology • Regulations • Tenant issues • Personal problems JUNE 2014 BUSINESS VIABILITY BUSINESS OPERATION Survey businesses to clarify issues –Personal interview –Survey monkey –Zoomerang Conduct audits –Inventory and store layout –Back door sales BUSINESS VIABILITY COMMERCIAL ASSESSMENT • Update business & • Prepare a map showing • Evaluate technology savvy property inventory and similar businesses by conduct interviews. − Website cluster, target customer • Interview developers, and function. − Social media store managers, lenders to identify • Map location of vacant − Email newsletters and surveys issues. and underutilized • Hold small business buildings and rental meetings to identify space. • Evaluate financing gaps and issues common issues. • Summarize strengths − Talk with Local lenders and CPA • Organize a “first and