1. 1. Retail in the land of Unspoiled Splendor Economic Development
2. 2. 2 Retail Strategy Poll Does your city/county organization have a retail strategy? Yes, for more than 10 years Yes, for more than 5 years Yes, less than 5 years Just adopted, or close to adopting In the strategy development process No, but plan to in the future
3. 3. 3 Introduction 2014 Population 29,830, 4.67% growth since 2000. Median home $170,000. Appreciation in LY 8.7%. Rochesters Cost of Living Index is +14.20% higher than U.S. Unemployment 3.9%, (U.S. avg is 5.7%, NH avg 4.3%) Recent job growth is positive, Rochester jobs have increased .88% TY Karen Pollard, CEcD, EDP ICSC Shopping Center University +30 Years in Retail & Economic Development Karen.pollard@rochest ernh.net NO SALES TAX NO STATE INCOME TAX HIGH VISITOR INDEX HIGH # SECOND HOMES
4. 4. 4 Why a Retail Strategy? #1 - Increase tax base Maximize development #2 Diversify employment #3 - Eliminates leakage $1.734 Billion Consumer demand Population growth Sophisticated Consumers Attracts visitors & business customers Untapped market Amenities for the regional population Restaurants, stores, services Demand diversity of chain & independent Reduces the need to travel Traffic, environmental
5. 5. 5 Lands of Opportunity Identify Locations (like a Site Selector!) Buildout Analysis Assess infrastructure Traffic Study Zoning & Permitting Have a Plan B Partnerships Rochester Crossing (Wilder Co) +600 employees 100% leased Valuation $24,669,700 $650,293 new annual revenue Before - 2008 After 2012
6. 6. 6 Retail Location Poll Has your city/county organization: Identified a specific location or district for retail? Modified zoning or permit requirements to be friendly to retail? Trained professional staff committed to support retail growth? Invested in utility expansions and infrastructure to support retail?
7. 7. 7 You Need Business Intelligence Target Retailers Make a List Research them Talk to existing retailers (status) Know what they want Not just what you have Know how decisions are made Give them data about their customers in your area Do a Retail Analysis Identify the Trade Area Become an expert on your trade area Identify the Customers Identify sites with maximum potential Develop a Retail Team Training & Practice Strategy for retention & attraction
8. 8. 8 Think Trade Areas How long and where do people commute? How long/far will people drive for groceries? For medical care? For a wedding dress? For a special dinner? For an everyday meal? Political Boundaries Drive Time Polygon Regional Map
9. 9. 9 Who Are the Consumers in Rochester, NH? Dominant Segments Description Households % of All Households D15 Sports Utility Families 935 5.03 E21 Unspoiled Splendor 1,180 6.34 F23 Families Matter Most 658 3.54 H29 Destination Recreation 1,025 5.51 I30 Stockcars and State Parks 791 4.25 I31 Blue Collar Comfort 687 3.69 K40 Bohemian Groove 596 3.20 L42 Rooted Flower Power 665 3.58 L43 Homemade Happiness 829 4.46 M44 Red, White, and Bluegrass 880 4.73 N47 Countrified Pragmatics 1,492 8.02 O51 Digital Dependents 934 5.02 Q64 Town Elders 1,193 6.41 R66 Dare to Dream 628 3.38 S70 Tight Money 649 3.49
10. 10. 10 Data Driven Site Selection 0% 2% 4% 6% 8% 10% A01 A02 A03 A04 A05 A06 B07 B08 B09 B10 C11 C12 C13 C14 D15 D16 D17 D18 E19 E20 E21 F22 F23 G24 G25 H26 H27 H28 H29 I30 I31 I32 I33 J34 J35 J36 K37 K38 K39 K40 L41 L42 L43 M44 M45 N46 N47 N48 N49 O50 O51 O52 O53 O54 O55 P56 P57 P58 P59 P60 P61 Q62 Q63 Q64 Q65 R66 R67 S68 S69 S70 S71 Percentage Segments 60 Farmington Rd Dominant Segments Description Households % of All Households D15 Sports Utility Families 935 5.03 E21 Unspoiled Splendor 1,180 6.34 F23 Families Matter Most 658 3.54 H29 Destination Recreation 1,025 5.51 I30 Stockcars and State Parks 791 4.25 I31 Blue Collar Comfort 687 3.69 K40 Bohemian Groove 596 3.20 L42 Rooted Flower Power 665 3.58 L43 Homemade Happiness 829 4.46 M44 Red, White, and Bluegrass 880 4.73 N47 Countrified Pragmatics 1,492 8.02 O51 Digital Dependents 934 5.02 Q64 Town Elders 1,193 6.41 R66 Dare to Dream 628 3.38 S70 Tight Money 649 3.49
11. 11. 11 Purchase Behavior Lifestyle Characteristics Index Recently Purchased a Riding Lawn Mower 480 Drive Domestic Sporty Cars 306 Recently Purchased Hunting Clothes 251 Watch the show How I Met Your Mother 215 Use the brand Neutrogena 210 N47: Countrified Pragmatics Lifestyle Characteristics Index Belong to an Environmentalist Organization 205 Visit fishing websites 198 Watch How-To or DIY TV shows 171 Have a Graduate Degree 167 Drive a Hybrid Car 153 E21: Unspoiled Splendor
12. 12. 12 Dunkin vs. Starbucks How much is too much? Dunkin came in for their 9th location Planning Board anxiety Starbucks Nov 2008 to April 2009
13. 13. 13 Be a Destination Own Your Strengths! Vehicle Dealers & Parts 110% Dealers +$5M Other MV Dealers +$28M Building Materials & Garden Equipment 110% Home Centers +$15M Hardware +$7M Power Equipment +$3.4 M Food & Beverage Stores 120% Supermarkets +$77M C-Stores +$12M Specialty Foods +$1M Other Sub-sectors Florists +$2.4M Gifts & Souvenirs +$300K Specialty Foods +$1M
14. 14. 14 Retail Leakage = Opportunity Leakage Report X Purchase Behavior = RETAIL TARGETS $3B Potential/$1.3B Actual Furniture & Home Dcor -85% -$70M Electronics & Appliances -80% -$76M Health Care Stores -45% -$14M Clothing & Accessories -80% -$198M Sporting Goods, Hobby, Book & Music Stores -70% -$65M General Merchandise -67% -$114M Misc. Merchandise Stores -65% -$80M Food & Drinking Places -75%-$209M
15. 15. 15 Plan to Work Work Your Plan Buy-in for Strategy Invest in Tools Recruit a Team Training Brand your materials Trade Shows Be where your targets are Events & Awards Host, Sponsor, Participate Follow Up, Follow Up and Follow Up
16. 16. 16 Be Prepared to Work Hard
17. 17. 17 Benchmarking
18. 18. Granite Ridge Development District Zoning Unified & Adopted 2009 Capacity for 2 Million Square Feet of Dev. $3B Demand for Amenities, Services & Entertainment Waterstone Development Leasing 300,000 ft2 51,000 ft2 still available Now Leasing 50,000 ft2 (CBRE former Thompson) Tax Increment Financing $5 Million Phase 1 1995 Value $28,145,137 186,372 ft2 2013 Value $62,326,773 +121.45% Annual Rev. $1,642,934 594,316 ft2 2030 Est. Val $222,179,930 +271.89% Annual Rev. $3,137,580 2,210,220 ft2 Holiday Inn, Granite Ridge
19. 19. 19 The Ridge Waterstone Retail Entertainment based center, 130 acres Phase 1, 300,000 ft2 Movie theater, restaurants, retail Phase 2, 60,000 ft2 Est. $30 Million tax base Est. Employment 800 Before 2014 After 2016
20. 20. 20 Downtown Retail Poll Does your community desire Downtown retail? Do you have a strategy or master plan? Are your current retailers engaged? Do you have ways to overcome the obstacles?
21. 21. 21 What to do about Downtown? Step 1 3 months Business Retention Program 1 on 1 Visitation Resource Team Step 2 5 months Create comprehensive program & pitch to Council Short & Long-term goals Step 3 8 months Implement projects & programs Step 4 - Report out Maintain successful elements Downtown Rochester Business Retention Plan 2008
22. 22. 22 Retention Visit Results 65% on the edge Not Adapted Over Time Inventory Technology Unprepared Financially Lack of Planning Overall No Emergency Preparedness Expectation to go Back to the Way it Was Each participant received a free customized suggestion plan and resource packet Scholarship Program for Training Entrepreneurial Bootcamps Social Media for Businesses SBDC 1-on-1 meetings re: financial issues
23. 23. 23 Downtown Destination Plan INCENTIVES 7 NEW Downtown Events Main Street Program & FT Manager Business Guide & Map Active Shop Local Program Downtown Dining Program Monthly drawings & contests Co-op ads in various outlets TV Commercial targeting young professionals Decorating Contests for store windows Pirates of the Cocheco Business Retention Plan 2008
24. 24. 24 One-by-One One building owner One tenant One challenge One success Battle of inches No Shortcuts Measure every improvementNational Comic Book Day 2014 attendance 5,000 ppl Revolution Taproom October 2014
25. 25. 25 Downtown Attraction Strategy Develop a Downtown Target List Attraction Packages Specific Challenges Real Estate Open House Tours of Available Space Landlord Groups Referral Systems Entrepreneurial Support Programs