redevelopment commission pp 9.01.11

Seth Harry and Associates, Inc.

Beaufort Retail Report Debriefing:

Redevelopment Commission

September 1, 2011

Seth Harry and Associates, Inc.

The Market

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Extra-Regional Context

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Regional Competitive Context

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Local Competitive Context

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Local Competitive Context

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Market Context

Primary:(Daily Needs)

Secondary:(Shoppers Goods)

Tertiary:(Regional/Specialty Goods)

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5 min -

Population:5,282/ 5,054/ 5,147

Households:2,210 /2,158/2,205

Median HH Income:$34,265$41,984$47,811

10 min -

Population:18,566/ 19,756/ 20,923

Households:7,371/ 7,930/ 8,413

Median HH Income:$38,260$47,757$54,507

30 min -

Population:64,891/ 73,633/ 80,129

Households:21,893/ 25,758/ 28,320

Median HH Income:$38,615$48,070$54,169

Demographics (2000, 2010, 2015)

Seth Harry and Associates, Inc.

Demand(Potential) 5/10/15 min:

$56,537,694$48,666,322/$ 7,871,372

$179,242,620/$ 29,320,982

$574,680,879/$ 92,221,799

Supply(est.):

$143,125,115$118,781,660/$ 24,343,455

$329,412,426/$ 56,929,091

$912,903,068/$ 76,602,630

Leakage/SurplusFactor:

- $86,587,421- 41.9- 51.1

- 29.5- 32.0

-22.79.3

By NAICS:

Seth Harry and Associates, Inc.

Oversupply Verses

Inflow of consumer dollars:

Seth Harry and Associates, Inc.

Retail Sales per Square foot:

Range:$30 – 80/sq. ft.w/ some notable

exceptions

Restaurant Sales per Square foot:

Range:$200 – 300/sq. ft.

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Psycho-graphic Trends

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Psycho-graphic Trends

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Psycho-graphic Trends

•Mid-life Junction•Up and Coming Families•Great Expectations

•Rural Bypasses•Military Proximate•Silver and Gold

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Psychographic Characteristics

Diverse in many ways but --with the exception of “Gold and Silver” – have modest income levels, and are considered careful spenders, who frequent discount retailers and family-style chain restaurants.

Seth Harry and Associates, Inc.

Psychographic Characteristics

“Up and Coming Families”represents one of the best long-term capture potentials –young in median age with a high level of disposable income.

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Strategic Response(threats and opportunities)

• Nearby Shopping Centers compete for local purchases

• Internet/Hilton Head Competes for Shoppers Goods

• Tanger Factory Outlets (Fashion/apparel focus)

• Ad hoc Visitor experience

Threats:

Seth Harry and Associates, Inc.

Strategic Response

• Unique physical setting/waterfront environment

• Congestion on 278 (nobody goes there anymore, it’s too popular)

• Catalytic/transformative Uses• Changing Demographics

Opportunities

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Critical Issues• Market Positioning• Merchandising Plan• Coordinated Operating Hours/Comprehensive management

• Lighting• Parking• Revenue/maintenance• Upper-story uses (code)• Funding mechanisms• Gentrification

Seth Harry and Associates, Inc.

Strategic Response• Capture a larger share of the localconsumer market

• Capture a larger share of the visitor market

• Embrace Change while retaining core strengths and attributes(Pursue Catalytic Projects)

• Diversify Economy/appeal

Seth Harry and Associates, Inc.

• Redefine what Constitutes “Downtown” Beaufort

• Broaden diversity of goods and experiences within “niche” focus, while avoiding unanticipated/ unwanted “niche” stigmas

• Create flexible, robust “framework” to guide change in an organic, but consistently positive direction

Strategic Response

Seth Harry and Associates, Inc.

Comprehensive Management:

• Merchandising Plan• Marketing• Coordinated Operating Hours/Management

• Lighting• Parking• Events programming

Seth Harry and Associates, Inc.

Merchandising Plan (current):

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P

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Seth Harry and Associates, Inc.

Merchandising Plan (proposed):

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Merchandising Plan:

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• Design/Merchandising Strategies• Signage• Lighting• Way-finding• Street furnishings• Landscaping• Security/maintenance/Visitor Assistance (ambassadors)

• Visitor Amenities/Restrooms

Strategic Responses

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Building Design

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Tenant Design Guidelines

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Influential/Supportive Policies and Funding Sources

• Historic Review Board• National Rehab Code/• Federal and State Rehabilitation Tax Credits

• Federal New Markets Tax Credits• Special Events Funding• TIF/BID• Low-interest revolving loan fund• Public/private Grants

Seth Harry and Associates, Inc.

Strategic Responses

•More frequent/locally targeted events

• Initiate merchant enhancement policies/programs

• Initiate merchant recruitment strategies

• More Jobs and more people living downtown

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Demographic Trends

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Demographic Trends

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Demographic Trends

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Demographic Trends

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Demographic Trends

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General Observations/recommendation:

• Need to refine and sharpen market positioning strategy

• Secure more detailed information on the Visitor market, and update frequently

• Restaurants are leading the leading the curve in setting the tone, and “proving the market” – retail needs to follow suit

• Hours/days of operation is probably the biggest short-term impediment to growing market share

Seth Harry and Associates, Inc.

General Observations/recommendation:

• Many stores need to improve quality and “freshness” of interior design/ merchandising

• Traffic flow/parking needs addressing, including narrow sidewalks

• Create more reasons to come downtown• Consider, dedicated, targeted recruitment campaign

• Wherever possible, align local buyer’s preferences with visitor market merchandise (broaden appeal)

Seth Harry and Associates, Inc.

General Observations/recommendation:

• Encourage new investment through more flexible regulatory/design parameters

• Aggressively pursue catalytic opportunities by leveraging existing assets

• Tailor downtown housing/redevelopment options to target specific consumer groups through segmentation analysis

• Redefine “downtown” as a broader set of unique districts, to enhance visitor draw

Seth Harry and Associates, Inc.

General Observations/recommendation:

• Break potential disinvestment cycle –build on momentum

• Pursue “best in class” merchants with unique, one of a kind products

• Diversify offerings/price points within broad merchandise categories

• “Grow your own” grocery concept• Aim for where the market is heading – not where its been

Seth Harry and Associates, Inc.

Summary:• Modest local market, further challenged by current recession• Large supply of commercially zoned land just outside of town• Physical constraints represented by the historic downtown core

Seth Harry and Associates, Inc.

Key Strategic Response:• Increase market share by offering a broader array of branded merchandise• Develop/enhance the local consumer market in both size and demographic attributes.• Capitalize on demographic trends favoring compact, walkable communities, and an amenity rich environment

What does Beaufort want to be?

A. A traditional coastal community, trading on its

history and cultural assets,appealing to a well-defined,

consistent audience

B. A diverse community, representing a broad socio-economic spectrum whose

attraction to Beaufort is based upon a combination of local traditions and natural

amenities

C. A dynamic, forward looking City of the future which embraces its past while positioning itself as a

sustainable community where young families and adults can

pursue their dreams in exciting and fulfilling ways

D. All of the above.

Seth Harry and Associates, Inc.

Not a single “big idea,”rather --

A multi-faceted approach within

a flexible, well-coordinated,and comprehensive

framework …