Downtown and The Vista
March 2008
Retail Strategy & Implementation Program
¾ The CCCP and City of Columbia retained ERA|DW to evaluate retail
conditions in Columbia’s downtown core (including the Vista)
¾ The scope for the downtown core includes:
ƒ Retail Market Profile and Demand Analysis
ƒ Merchandise Mix Plan
ƒ Implementation Program
Project Timeline
¾ Months Sept.- Nov.: Data gathering, interviews, strategic assessment
¾ Months Dec.- Feb.: Executive Summary, merchandise mix plan, retail
recruiter, marketing material
¾ Months March - Aug.: Implementation
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 1
Table of Contents
I.
Project Overview
II.
Downtown Market Profile
I.
Existing Conditions - Qualitative Assessment
II.
Competitive and Surrounding Retail Districts
III. Stakeholder Interviews
IV. Summary Strengths and Weaknesses
III.
Retail Demand Analysis
I.
Methodology
II.
Customer Markets
III. Findings
IV.
Merchandise Mix Plan
V.
Implementation Program
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 2
ERA|DW refined the Core’s retail study area to primary blocks of Main and Lady
Street; retail revitalization achieved best when efforts are concentrated.
Basics
Basics
¾
ERA|DW and the CCP determined the primary retail
areas
ƒ
ƒ
¾
¾
Qualitative
Qualitative Assessment
Assessment
¾
Main Street – Between Gervais St. and Laurel St.
Lady Street - Between Main St. and Huger St.
The Vista and Main Street are important components
of the Downtown
ƒ
ƒ
¾
ƒ
Main St. has 44 retail, restaurant, or entertainment
businesses.
Lady St. has 14 retail, restaurants, or entertainment
businesses
ERA No: 17467 – Downtown Columbia Retail Strategy
¾
Understanding existing conditions and the merchandise
mix
The Retail Recruiter during the recruitment process
Conducted for:
ƒ
ƒ
Retail operations
ƒ
ERA|DW conducted a Qualitative Assessment,
which is a critical tool for
Main Street: Between Gervais and Laurel Sts.
Lady Street: Between Main and Huger Sts.
Considers five factors
ƒ
ƒ
ƒ
ƒ
ƒ
Maintenance
Façade
Signage
Window Display
Interior Merchandising
¾
Each category is given a ranking 1 (lowest) through
4 (highest)
¾
Lowest possible total score is 5 and highest
possible total score is 20
Page 3
While a majority of the buildings on Main and Lady Streets are retail,
there is still room for more and better retail and restaurants.
Main
Main Street
Street (Oct.
(Oct. 2007)
2007)
¾
Lady
Lady Street
Street (Oct.
(Oct. 2007)
2007)
Breakdown of uses by type (89 spaces)
ƒ Only 28% of building spaces are retail,
which includes apparel, convenience
goods, jewelry, shoes, souvenirs, wigs,
home furnishings, and other
miscellaneous retail
ƒ 10% of spaces are retail service, which
include tailors, salons, dry cleaners and
other miscellaneous services
ƒ 9% are restaurants
ƒ 2% are bar/clubs
ƒ 29% are offices or residential
ƒ The remaining 21% of spaces are
currently vacant
¾
Breakdown of uses by type (36 spaces)
ƒ Only 19% of building spaces are retail, which
includes apparel, home furnishings, art
galleries, and miscellaneous other retail
ƒ 3% are restaurants
ƒ 3% are bar/clubs
ƒ 14% are retail services
ƒ 42% are offices
ƒ The remaining 19% of spaces are currently
vacant
Percentage of Ranked Store-Fronts
Percentage of Ranked Store-Fronts
Retail
Restaurants
Bar/Club
Retail Service
20%
Retail
Restaurants
Bar/Club
Retail Service
5%
36%
50%
57%
18%
7%
7%
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 4
The Qualitative Assessment is a tool for the Retail Recruiter to document
storefronts and identify strengths and weaknesses along Main and Lady Street.
Main
Main Street
Street
Lady
Lady Street
Street
Strengths:
ƒ Existing retail and restaurants are in good
condition (zero stores cored below 7 and 53%
scored 12 or higher)
ƒ Part of the Vista
Strengths:
ƒ Original building facades are attractive and are
unique in Columbia
ƒ Proximity to the Vista
Weaknesses:
ƒ The majority of retail storefronts have darkly tinted
windows, which reduces visibility of merchandise
ƒ Some original building facades are covered with faux
and mismatched materials
ƒ Signage over many storefronts need repairs or
replacement
ƒ Uses are inappropriate for immediate and potential
market
Weaknesses:
ƒ Visibility of store windows to sidewalk and street
impeded due to:
• Tinting of store windows
• Set backs from street and sidewalks
ƒ Lack of continuity of storefronts
ƒ 42% of spaces are offices
ƒ Not connected to Main Street
30
Lady
Number of Spaces
25
Main
20
Score
Distribution
4
6
15
Vacancy
Vacancy
10
ƒ Main St: 19 of 89 ground level building spaces
are vacant
ƒ Lady St: 7 of 36 spaces are vacant
18
14
3
5
0
Score
5
0
1
0-5
6-10
ERA No: 17467 – Downtown Columbia Retail Strategy
11-15
16-20
Page 5
Retail centers surrounding the downtown Core have competitive offerings in some
categories, but none can provide the unique and differentiated shopping environment
that Main and Lady Streets can.
Surrounding
Surrounding Shopping
Shopping Centers
Centers
Malls
Malls and
and Lifestyle
Lifestyle Centers
Centers
¾
Village at Sandhill Lifestyle Center (296,606 SF of
retail space, 95 stores)
¾
Columbiana Center Mall (818,500 SF, 97 stores)
¾
Columbia Place Mall (1,042,404 SF, 104 stores)
Village at Sandhill
Village at Sandhill
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 6
Columbia Place
The Vista is an important part of downtown and together, the Vista and
Main Street should define downtown retail…connectivity is key.
¾
Unique status as entertainment and restaurant
destination with some shopping
¾
Home to many historic buildings that were once
warehouses and railway stations
¾
Mix of office, residential and retail space
¾
¾
¾
¾
Strategic
Strategic Recommendations
Recommendations
¾
Vista and Downtown Core, Main Street, should,
together define downtown retail
¾
There must be better connectivity between the two
streets
There are currently 45 restaurants and bars, with
additional restaurants planned
¾
Lady Street will play a key role in this objective – it
is the greatest potential to connect the two areas
Most uses concentrated on Gervais St. between Huger
St. and Assembly St.
¾
Emerging with two identities
Although Main Street is very close to the Vista, they are
divided by Assembly St., (6 lanes of traffic)
The Vista and Main/Lady Street can complement each
other
ƒ
ƒ
¾
Encourage efforts to expand arts in the Vista
¾
Careful attention should be paid to infill
development
ƒ
ƒ
ƒ
ƒ
Gervais Street
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 7
Entertainment/tourist – West of 4th Ave
Residential neighborhood – East of 4th Ave
Optimize retail potential
Well designed stores
Storefronts flush with sidewalk
Parking in rear
¾
Infill should occur toward Main Street before
extending to Huger Street
¾
Residential growth is important here and
throughout downtown
ERA|DW interviewed community stakeholders ranging from building owners,
developers, real estate professionals, art-related professionals, etc.
¾
Great assets – Only city in state with large university with cultural venues and important sports
teams, five theaters, three rivers, and critically acclaimed zoo
¾
Downtown needs more retailers that appeal to middle and upper income households
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Bistros and Restaurants
Prepared foods and delis
Stationary
Apparel
Home furnishings
Books
¾
Currently, very little activity on Main Street after 5pm and on weekends
¾
Often city processes and permitting are challenging – development community lacks faith in city
processes
ƒ
ƒ
ƒ
Cumbersome permitting and design review
Very lengthy process
Needs to be streamlined
¾
Need incentives, a tool kit.
¾
Parking should be assessed a business license (% of annual revenue) to discourage land-holding and
encourage development
¾
Nickelodeon will be a great asset for downtown
¾
Retail rents are low on Main Street ($12-20 per SF). Similar to Vista and Five Points
¾
Demographic of Vista is young people who want to be seen – Five Points is mostly for college
students.
¾
Vista should be Arts District
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 8
Columbia has several key assets that should be capitalized and accentuated;
overcoming challenges will largely require thoughtful and strategic infill
development and renovation.
Strengths
Strengths
¾
Artistic and cultural center for Columbia, could be for South
Carolina
ƒ
ƒ
ƒ
¾
Challenges
Challenges
5 Theaters: Trustus, Town Theatre, Workshop, USC and
Columbia Marionnette, Nickelodean (currently film, will add
on Main Street
University (sports and culture)
Museums
¾
Downtown Perceptions (i.e. unsafe, homeless, panhandling)
¾
Monolithic office designs extend to pedestrian level
¾
Rental streams are too low making it difficult to support
development or renovation without incentives
¾
Office design characteristics do not work for retail
ƒ
ƒ
All three customer markets are represented
ƒ
ƒ
ƒ
Residents
Visitors
Employees
¾
Downtown momentum due to residential development and
success of the Vista
¾
Original building stock remain
¾
Street is lined with retail or retail opportunities on both
sides
¾
Streetscape improvements were very well executed and
great asset
¾
Lady Street has retail cluster in interesting buildings
¾
Easily accessible to residential neighborhoods
¾
Several destination retailers who have thrived despite
market conditions
¾
Need more residents living in the Core
¾
Gaps between retail on Main Street and Lady Street
ƒ
ƒ
ƒ
¾
ƒ
ƒ
ƒ
ƒ
ƒ
Page 9
Surface parking lots or garages
Vacant land
Office buildings
Suburban parking requirements in urban setting on Lady St.
ƒ
ERA No: 17467 – Downtown Columbia Retail Strategy
Setbacks
Limited transparency
3 to 3.5 per 1,000 sf of retail; 3.3 per 1,000 sf multi-use; 8
per 1000 sf restaurant
Do not take into account the public parking garages
Results in suburban-like structures in urban area
Developments can not reach maximum potential
Design Development Overlay: allows some consideration for
reduced parking requirements if multiple users share on-site
or off-site (garage) parking
Most of Main Street does not have parking requirements
Table of Contents
I.
Project Overview
II.
Downtown Market Profile
I.
Existing Conditions - Qualitative Assessment
II.
Competitive and Surrounding Retail Districts
III. Stakeholder Interviews
IV. Summary Strengths and Weaknesses
III.
Retail Demand Analysis
I.
Methodology
II.
Customer Markets
III. Findings
IV.
Merchandise Mix Plan
V.
Implementation Program
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 10
The first step in assessing retail potential is understanding 1) who are the
customers, 2) how much money do they spend and 3) where do they spend
money (retail categories).
Methodology
Methodology
¾
Determine customer markets by type and geographic
area
¾
Assess total retail expenditures of customer markets
¾
Determine market penetration rates for each customer
group, downtown sub-district, and retail type
Employee Market
ƒKey customer base
ƒ15,875 employees in
Partnership boundaries
ƒNot large enough to,
alone, support retail
¾
Quantify potential expenditures in sub-district
¾
Calculate range of supportable square feet for
each sub-district
Residential Market
ƒDrive-time trade areas
(real accessibility)
ƒ50,000 people in 5
minute drive time
ƒ112,000 people in 10
minute drive time
Approximately
60,000 in greater
downtown area
$$ Potential Retail Expenditures $$
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 11
Visitor Market
ƒ2.4 million est. to
Columbia
ƒBusiness and leisure
ƒSignificant support for
hospitality industry
(restaurants and hotels)
Retail trade areas encompass surrounding households that are potential
downtown customers, provided an appealing product is in place.
Retail
Retail Trade
Trade Areas
Areas
¾
¾ Retail
Retail trade
trade areas
areas are
are different
different than
than trade
trade
areas
areas used
used in
in office,
office, residential,
residential, and
and lodging
lodging
analyses
analyses
¾
¾ Retail
Retail trade
trade areas
areas assess
assess residents
residents who
who are
are
potential
customers
that
could
be
drawn
to
potential customers that could be drawn to
the
the site
site
¾The
¾The trade
trade areas
areas are
are 5,
5, 10,
10, and
and 20
20 minute
minute
drive
drive times
times from
from downtown
downtown
¾The
¾The trade
trade areas
areas consider
consider the
the competitive
competitive
context
context and
and accessibility
accessibility (major
(major roads)
roads) to
to
define
specific
markets
define specific markets
¾Primary
¾Primary trade
trade area
area residents,
residents, 55 minute
minute drive
drive
time,
are
expected
to
be
frequent
customers
time, are expected to be frequent customers
¾Secondary
¾Secondary trade
trade area
area residents,
residents, 10
10 minute
minute
drive
time,
are
expected
to
be
consistent,
drive time, are expected to be consistent, but
but
not
frequent
customers
not frequent customers
¾Tertiary
¾Tertiary trade
trade area
area residents,
residents, 20
20 minute
minute
drive
time,
are
likely
infrequent
customers
drive time, are likely infrequent customers
ERA No: 17467 Downtown Columbia Retail Strategy
Page 12
Retail trade area population and income are most relevant factors when
assessing retail potential.
Demographic
Demographic Information
Information
Area Description
Primary
Secondary
Households
Households with
with Income
Income
Tertiary
Total
2007 Population
2012 Population
CAGR 07-12
49,637
50,999
0.54%
111,705
114,154
0.43%
232,664
247,848
1.27%
394,006
413,001
0.95%
2007 Households
2012 Households
CAGR 07-12
19,675
20,687
1.01%
52,265
54,246
0.75%
85,026
92,287
1.65%
156,966
167,220
1.27%
2.0
28.3
2.1
36.8
2.5
35.3
Average HH Size
Median Age
¾Primary
¾Primary Market
Market
ƒƒ
ƒƒ
¾
¾ Secondary
Secondary Market
Market
ƒƒ
ƒƒ
ƒƒ
ƒƒ
25,000
¾There
¾There is
is also
also larger
larger population
population growth
growth projected
projected in
in
the
the tertiary
tertiary market
market
20,000
15,000
Primary
Secondary
Tertiary
10,000
5,000
<
$1
$1
5,
5,
00
00
0
0$2
$2
4,
5,
99
00
9
0$
34
$3
,9
5,
99
00
0$4
$5
9,
0,
99
00
9
0$
74
$7
5,
,9
99
00
0$1
$
99
00
,9
,0
99
00
-$
$1
1
49
50
,9
,0
99
00
-$
19
9,
99
9
$2
00
,0
00
+
0
¾A
¾A key
key success
success factor
factor for
for downtown
downtown retail
retail is
is to
to attract
attract
spending
spending from
from the
the faster
faster growing,
growing, larger
larger income
income
tertiary
tertiary market
market
ERA No: 17467 Downtown Columbia Retail Strategy
Median
Median Income:
Income: $60,446
$60,446 (2007)
(2007) -- $69,758
$69,758 (2012)
(2012)
Avg
Avg Income:
Income: $75,613
$75,613 (2007)
(2007) -- $90,734
$90,734 (2012
(2012
Residential trade Areas, Household Distribution
Number of HH
¾There
¾There is
is aa higher
higher percentage
percentage of
of households
households with
with high
high
income
income in
in the
the tertiary
tertiary market
market
Median
Median Income:
Income: $41,804
$41,804 (2007)
(2007) -- $47,644
$47,644 (2012)
(2012)
Avg
Income:
$57,426
(2007)
$66,812
Avg Income: $57,426 (2007) - $66,812 (2012)
(2012)
¾Tertiary
¾Tertiary market
market
1/ CAGR is the compound annual growth rate
Source: ESRI Business Information Solutions; Economics Research Associates, 2007
¾The
¾The real
real growth
growth rate
rate of
of average
average household
household income,
income,
the
growth
rate
of
income
minus
inflation,
for
the growth rate of income minus inflation, for all
all three
three
markets
markets is
is 1.01%
1.01%
Median
Median Income:
Income: $28,104
$28,104 (2007)
(2007) -- $31,996
$31,996 (2012)
(2012)
Avg
Avg Income:
Income: $45,569
$45,569 (2007)
(2007) -- $52,076
$52,076 (2012)
(2012)
Page 13
Residential Expenditures are based on Consumer Expenditure Surveys from the
Bureau of Labor and Statistics and include all household expenditures regardless of
expenditure location.
Residential expenditures are a significant portion of
downtown demand; therefore, ERA highlights, here,
residential spending before downtown market
penetration rates are applied
Expenditure
Breakdown
Eating &
Drinking
Places
37%
Apparel &
Apparel
Services
25%
Total
Total Residential
Residential Expenditures
Expenditures 2012
2012
¾These
¾These expenditures
expenditures represent
represent household
household purchases
purchases
anywhere,
including
expenditures
that
do
not
anywhere, including expenditures that do not occur
occur
in
the
trade
area
or
downtown
in the trade area or downtown
¾Total
¾Total expenditures
expenditures are
are estimated
estimated to
to be
be $1.5
$1.5
billion
in
2012
billion in 2012
¾The
¾The top
top pie
pie chart
chart breaks
breaks down
down estimated
estimated 2012
2012
residential
expenditures
by
specific
categories
residential expenditures by specific categories (ESRI
(ESRI
Business
Business Analyst)
Analyst)
¾The
¾The tertiary
tertiary market
market constitutes
constitutes aa significant
significant
percentage
percentage of
of total
total expenditures,
expenditures, however,
however, those
those
residents
are
much
less
likely
to
travel
to
downtown
residents are much less likely to travel to downtown
for
for retail
retail
ƒƒ More
More than
than half
half of
of all
all expenditures
expenditures
ƒƒ 33%
33% more
more than
than the
the secondary
secondary market
market
ƒƒ 51%
51% more
more than
than the
the primary
primary market
market
$1.5 billion
total
Personal Care
& Services
12%
Market
Breakdown
Primary
Market
9%
Secondary
Market
29%
Tertiary
Market
62%
ERA No: 17467 - Downtown Columbia Retail Strategy
HH
Furnishings &
Electronics
26%
Page 14
Psychographic information describes the lifestyle preferences and buying patterns
of households, which is important when analyzing retail potential and outlining
recruitment goals.
Primary
Primary Market
Market (5
(5 min.
min. drive)
drive)
¾
Analyzed Life Mode Tapestry groups, which
cluster similar lifestyles and life stages
¾
Each Life Mode group has several more specific
segmentation categories (65 in whole system)
¾
2nd and 3rd largest groups (Metropolis and Solo
Acts), are potential downtown customers
¾
ƒ
ƒ
Family Portrait
8%
College Towns 15% of total
4th youngest of all tapestry segments with a
median age of 24.5
Median household income is $28,900
Dorms to Diplomas 10% of total
Traditional Living
2% High Society
1%
Global Roots
2%
High Hopes
10%
Metropolis
26%
Metropolis - 26%
ƒ
ƒ
ƒ
ƒ
ƒ
¾
ƒ Contains 7 most affluent segments, high disposable income
ƒ Category grows significantly has market extends (3% and
9% of secondary and tertiary markets)
Scholars and Patriots – 25%
ƒ
ƒ
¾
High Society is a relevant group for retail - smallest
group
Metropolitans 13% of total
Favor city living, have active urbane lifestyle
75% of those over 25 have college degree or higher
Median income $61,000
Modest Income Homes 8% of total
Solo Acts – 13%
ƒ
ƒ
ƒ
ƒ
ƒ
Young and Restless 3% of total
Young population with median income below
US median income, but higher discretionary
income because only 23% of these households
include children
Old and Newcomers 3% of total
Typically renters that are starting their careers
or retiring
Higher percentage than national average of
people in their 20’s or over 75
ERA No: 17467 – Downtown Columbia Retail Strategy
Solo Acts
13%
Scholars & Patriots
25%
Senior Styles
13%
Categories in orange indicate likely
customers for urban retail
Page 15
In the secondary market, a larger segment of the population [than in the
primary market] are likely urban customers.
Secondary
Secondary Market
Market (10
(10 min.
min. drive)
drive)
¾
Solo Acts – 23%
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
¾
¾
Several equally dominant tapestry groups
¾
Largest group, Solo Acts, is key group for
urban spending
¾
Could visit downtown on a weekly basis
American Quilt
High Society
1%
3%
Traditional Living – 20%
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
¾
Young and Restless dominant sub group - 17%
of total
Young professionals pursuing careers, busy lifestyles
Read magazines to stay current on lifestyle,
entertainment, and fashion trends
Technologically savvy
Not yet saving for retirement or investing
Frequent movies, clubs, bars
Most are Family Foundations 12% of total
73% of these households are composed of various
family types
Median household income is $42,100
They spend on home maintenance and on their
families
Midlife Junction are 6% of total
Median age is 40.5
Median household income is $43,600
These households spend their money carefully and
do not succumb to fads
Senior Styles – 17%
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Prosperous Empty Nesters 5% of total
56% of Prosperous Empty Nesters are 55 or older
Median household income is $66,200
Place a high value on their physical or financial wellbeing
Rustbelt Retirees 4% of total
Median household income is $47,400, which is just
below the U.S. median household income
Traditional Living
20%
Upscale Avenues
5%
Metropolis
10%
Family Portrait
5%
Global Roots
1%
Solo Acts
23%
High Hopes
11%
Scholars & Patriots
4%
Senior Styles
17%
Categories in orange indicate likely
customers for urban retail
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 16
The Tertiary Market has the most affluent customer base, but they are the farthest
from downtown; the quality of Merchandise Mix will determine their impact.
Tertiary
Tertiary Market
Market (20
(20 min.
min. drive)
drive)
¾
Family Portrait – 30%
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
¾
Upscale Avenues – 15%
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
¾
Up and coming Families are 15% of total
Youngest segment of the most affluent family markets
Median age of 31.9 years
Mix of Generation X and Baby Boomers
Many are beginning or expanding their families
Milk and Cookies are 14% of total
Young, affluent, married couples who are starting their
families
Median household income is $60,700
¾
Distance from downtown limits likelihood of
frequent shopping trips to downtown
¾
Over 60% are households with affluence
who enjoy spending
¾
Must create great retail mix (destination) to
attract
Factories & Farms
0% American Quilt
Traditional Living
7%
8%
High Society
9%
Cozy and Comfortable is most dominant subgroup 5% of total
Middle-aged, married couples with a median age of 41
Median household income is $61,800
In Style small subgroup 5% of total
Live in suburbs but prefer the city lifestyle
Median household income of $67,800
Upscale Avenues
15%
Metropolis
2%
Senior Styles – 10%
ƒ
ƒ
ƒ
ƒ
Prosperous Empty Nesters, most of group - 9% of total
Family Portrait
56% of Prosperous Empty Nesters are 55 or older
30%
Median household income is $66,200
Place a high value on their physical or financial wellbeing
Solo Acts
10%
Senior Styles
Global Roots High Hopes
10%
Scholars
&
Patriots
1%
7%
1%
Categories in orange indicate likely
customers for urban retail
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 17
If downtown retail is successful it will penetrate a portion of total resident,
employee, and visitor expenditures (market penetration); market penetration rates
vary depending on the sub-district, retail type, and customer type.
Market
Market Penetration
Penetration
¾
¾ Market
Market penetration
penetration rates
rates or
or capture
capture rates
rates identify
identify aa realistic
realistic portion
portion of
of
expenditures
expenditures that
that could
could be
be spent
spent in
in aa given
given area
area
¾
¾
¾
¾
Rate
Rate of
of 10%,
10%, assumes
assumes $10
$10 of
of every
every $100
$100 isis spent
spent in
in aa defined
defined area
area
Additionally,
common
consumer
behaviors
influence
the
propensity
Additionally, common consumer behaviors influence the propensity to
to buy
buy
certain
items.
For
example,
people:
certain items. For example, people:
ƒƒ Buy
Buy groceries
groceries and
and convenience
convenience items
items close
close to
to home
home
¾
¾ Market
Market penetration
penetration rates
rates take
take into
into consideration
consideration
the
the following
following aspects
aspects of
of the
the sub-districts
sub-districts under
under
study
study
ƒƒ Nature
Nature of
of the
the sub-district
sub-district
ƒƒ Travel
Travel farther
farther more
more often
often to
to go
go to
to restaurants
restaurants as
as opposed
opposed to
to retail
retail
ƒƒ Existing
Existing and
and potential
potential critical
critical mass
mass of
of retail
retail
ƒƒ Competitive
Competitive context
context
ƒƒ Proximity
Proximity of
of market
market to
to sub-district
sub-district
Residential Market
Employee Market
ƒRetail:
$24.7 million (low)
$25.5 million (high)
ƒFood and beverage:
$29.7 million (low)
$30.7 million (high)
ƒRetail:
$67.1 million (low)
$87.4 million (high)
ƒFood and beverage:
$68.5 million (low)
$82.7 million (high)
Estimated Downtown Expenditures:
$222.3 million - $264.7 million
ERA No: 17467 - Downtown Columbia Retail Strategy
Page 18
Visitor Market
ƒRetail:
$5.2 million (low)
$6.9 million (high)
ƒFood and beverage:
$27.1 million (low)
$31.5 million (high)
Trade area households are an important customer base for downtown retail; they
are constant and large market group with, collectively, a significant amount of
money to spend downtown if an appealing Merchandise Mix is in place.
Capture
Capture Rates
Rates By
By Category
Category
Retail
Apparel & Apparel Services
HH Furnishings & Electronics
Personal Care & Services
Eating & Drinking Places
Primary
Low
High
12%
15%
12%
15%
12%
15%
12%
15%
20%
25%
Secondary
Low
High
9%
11%
10%
12%
10%
12%
8%
10%
15%
18%
2012
2012 Estimated
Estimated On-Site
On-Site Expenditures
Expenditures
Tertiary
Low
High
5%
7%
6%
8%
6%
8%
3%
5%
10%
12%
$153
$153 Million
Million Total
Total
Retail
32%
34%
Discussion
Discussion
Personal Care
& Services
¾
¾ Total
Total market
market expenditures
expenditures do
do not
not equal
equal on-site
on-site spending
spending
¾
¾ Utilize
Utilize capture
capture rates
rates specific
specific to
to trade
trade areas
areas to
to calculate
calculate
likely
likely on-site
on-site spending
spending
ƒƒ
5%
10%
10% =
= $10
$10 of
of every
every $100
$100 spent
spent will
will occur
occur at
at proposed
proposed site
site
¾
¾ Considered
Considered shopping
shopping behaviors
behaviors and
and proximity
proximity to
to
competitive
competitive offerings
offerings
¾
¾ Inflow
Inflow accounts
accounts for
for potential
potential spending
spending by
by residents
residents beyond
beyond
the
the defined
defined primary
primary and
and secondary
secondary trade
trade areas
areas
¾
¾ Inflow
Inflow potential
potential isis limited
limited due
due to
to surrounding
surrounding 5.5
5.5 million
million
square
square feet
feet of
of retail
retail in
in central
central business
business district
district of
of Columbia
Columbia
¾
¾ Estimated
Estimated on-site
on-site expenditures
expenditures assume
assume that
that aa tenant
tenant mix
mix
reflecting
reflecting customers’
customers’ characteristics
characteristics isis in-place
in-place
¾
¾ Although
Although the
the primary
primary trade
trade area
area isis smaller,
smaller, its
its residents
residents
account
account for
for aa higher
higher percentage
percentage of
of the
the total
total spending
spending
¾
¾ Eating
Eating and
and Drinking
Drinking places
places account
account for
for 32%
32% of
of
expenditures;
expenditures; typically
typically aa retail
retail center
center devotes
devotes 25%-35%
25%-35% of
of
tenant
tenant mix
mix to
to such
such uses
uses
¾
¾ AA collection
collection of
of restaurants
restaurants can
can function
function as
as an
an anchor;
anchor;
people
people are
are more
more likely
likely to
to travel
travel farther
farther for
for aa restaurant
restaurant than
than
other
other retail
retail
ERA No: 17467 – Downtown Columbia Retail Strategy
Apparel &
Apparel
Services
HH Furnishings
& Electronics
15%
Eating &
Drinking Places
14%
2012
2012 Distribution
Distribution of
of Category
Category Spending
Spending by
by Trade
Trade Area
Area
100%
90%
80%
70%
60%
Primary Market
50%
Secondary Market
40%
Tertiary Market
30%
20%
10%
0%
Retail
Page 19
Apparel &
Apparel
Services
HH
Personal Care
Furnishings & & Services
Electronics
Eating &
Drinking
Places
Employees can have a strong impact on downtown retail, if there is a critical
mass; it is important for Columbia to grow its professional employee base in
downtown.
Major
Major Employment
Employment Industries
Industries
60,000 employees in all of downtown
Columbia
¾
¾
15,875 employees in Center City
Partnership downtown area
¾
The downtown employee base is not large
enough, alone, to support retail
¾
Major Employers in Columbia:
ƒ
ƒ
ƒ
ƒ
ƒ
¾
State of South Carolina (11,500)
Palmetto Health Alliance (9,300)
USC (4,500)
SCANA/SCE & G (2,210)
City of Columbia (2,000)
Major industries in CCP area of downtown Columbia:
ƒ
ƒ
ƒ
ƒ
ƒ
Health Care and Social assistance (25%)
Public Administration (20%)
Professional, Scientific, and Technology (20%)
Finance and Insurance (12%)
other (22%)
National
National Trends
Trends
¾
Increase - Employees not buying lunch
ƒ
Increase - Lunches purchased at delis/carryout/grocery businesses (double)
¾
Decrease - Office workers travel time to lunch (avg
6 min)
¾
¾
Eating and Drinking Places Total employee
expenditures: $29.7-$30.7 million
¾
Retail total employment expenditures: $24.7-$25.5
million
4% in 1987 and 17% in 2003
¾
ƒ
Employee
Employee Spending
Spending
Less than 5 min: 25% in 1987 and 40% in 2003
Eating &
Drinking
Places
55%
Increase - Employees stopping for after work
dinner/ drinks close to office
ƒ
12% in 1987 and 25% in 2003
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 20
Retail
45%
Downtown Employee Expenditures
Downtown
Downtown Employment,
Employment, 2007-2012
2007-2012
Industry
Health care & Social Assistance
Public Administration
Professional, Scientific & Tech Services
Finance & Insurance
Other
Total
2007
Employees
4,012
3,243
3,231
1,934
3,455
15,875
2012
Employees
5,287
4,273
4,257
2,548
4,553
20,918
Employee
Employee Spending
Spending
¾
¾ 15,875
15,875 employees
employees in
in Center
Center City
City
Partnership
Partnership downtown
downtown area
area
¾
¾ Employees
Employees primarily
primarily spend
spend on
on food
food
and
and beverage,
beverage, including
including lunch
lunch and
and
dinner
after
work
dinner after work
Source: InfoUSA, 2007; Economics Research Associates, 2007
Average Annual Employee Expenditures, 2007
Retail: $1,180-$1,217
Eating and Drinking: $1,421-$1,466
Downtown
Downtown Employee
Employee Spending,
Spending, 2007-2012
2007-2012
Retail Category
Retail
Eating & Drinking Places
Total
2007 Expenditures
Low
High
$ 18,732,741 $
19,324,301
$ 22,564,081 $
23,276,631
$ 41,296,823 $
42,600,933
$
$
$
Source: InfoUSA, 2007; Economics Research Associates, 2008.
2012 employee spending downtown:
$54.4-$56.1 million
ERA No: 17467 Downtown Columbia Retail Strategy
Page 21
2012 Expenditures
Low
High
24,683,972 $ 25,463,465
29,732,495 $ 30,671,416
54,416,467 $ 56,134,882
Visitors primarily support the food/beverage and hospitality industry; they
are a captive audience; the visitor market is strong.
Columbia
Columbia Visitors
Visitors
Visitor
Visitor Characteristics
Characteristics
¾
¾ ERA
ERA estimated
estimated approximately
approximately 1.9
1.9 million
million visitors
visitors to
to the
the Columbia
Columbia
area
area
¾
¾
¾
¾
¾
¾
¾
¾ Median
Median household
household income
income for
for SC
SC visitors
visitors was
was $40,000
$40,000 -- $59,000
$59,000
ƒƒ 539,000
539,000 business
business visitors
visitors
ƒƒ 1,380,000
1,380,000 leisure
leisure visitors
visitors
Richland
Richland county
county accounted
accounted for
for the
the 55thth most
most expenditures
expenditures from
from
domestic
domestic travel
travel among
among SC
SC counties
counties and
and Columbia
Columbia attracts
attracts 34%
34% of
of
SC
SC visitors
visitors
These
These figures
figures come
come from
from aa Travel
Travel Industry
Industry Association
Association report
report
commissioned
by
the
SC
Dept.
of
Parks,
Recreation,
commissioned by the SC Dept. of Parks, Recreation, and
and Tourism
Tourism in
in
2006
2006 and
and aa Dept.
Dept. of
of Parks
Parks tourism
tourism survey
survey in
in 2004.
2004.
The
The convention
convention center
center business
business isis strong
strong
ƒƒ
ƒƒ
First
First full
full year
year in
in operation
operation (2005):
(2005): 132,208
132,208 visits
visits
By
2007,
155,683
visits
By 2007, 155,683 visits
¾
¾ Non-coastal
Non-coastal South
South Carolina
Carolina visitation
visitation stems
stems from
from neighboring
neighboring states
states
ƒƒ 41%
of
metro
area’s
visitation
is
from
within
SC
41% of metro area’s visitation is from within SC
ƒƒ 21%
21% from
from North
North Carolina
Carolina
ƒƒ 11%
from
Georgia
11% from Georgia
ƒƒ 4%
4% from
from Florida
Florida
¾
Of
people
going
¾ Of people going to
to the
the region
region (Lake
(Lake Murray
Murray County
County and
and Capital
Capital City),
City),
87%
go
to
Columbia.
87% go to Columbia.
¾
¾ Visitors
Visitors spend
spend on
on food,/beverage,
food,/beverage, accommodations,
accommodations, transportation
transportation
¾
¾
¾
¾
Conventioneers
Conventioneers food
food isis often
often handled
handled through
through the
the convention
convention center
center
Leisure
visitors
typically
spend
more
on
retail
than
business
visitors
Leisure visitors typically spend more on retail than business visitors
ƒƒ 2008
2008 year-to-date
year-to-date up
up 35%
35% from
from same
same period
period 2007
2007
2012 Approximate Captured Visitor
Spending
2012 Approximate Captured Visitor Spending
$20,000,000
Retail
17%
$18,000,000
Leisure Visitors
$16,000,000
Business Visitors
$14,000,000
$12,000,000
$10,000,000
2012 Captured Visitor
Spending:
Food and
Beverage
83%
$32.3 million - $38.4 million
ERA No: 17467 Downtown Columbia Retail Strategy
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$Retail
Page 22
Food and Beverage
ERA, next, determined the estimated supportable square feet for
downtown retail based on estimated downtown expenditures and sales
per square feet.
Supportable
Supportable Square
Square Feet,
Feet, 2012
2012
¾
¾ Productivity:
Productivity: Gross
Gross annual
annual sales
sales per
per square
square foot
foot for
for retail
retail
ƒƒ May
May vary,
vary, therefore
therefore aa constant
constant industry
industry and
and market
market appropriate
appropriate standard
standard was
was applied
applied (between
(between
$300
$300 and
and $350
$350 dollars
dollars per
per SF)
SF)
ƒƒ This
This further
further qualifies/conditional
qualifies/conditional the
the tenant
tenant mix
mix as
as one
one with
with successful
successful retailers
retailers that
that can
can pay
pay aa
sufficient
sufficient rent
rent and
and maintain
maintain appropriate
appropriate inventory
inventory levels
levels and
and merchandise
merchandise
ƒƒ Typically
Typically rent
rent isis between
between 88 –– 12
12 percent
percent of
of gross
gross sales
sales
ƒƒ Sufficient
Sufficient rent
rent enables
enables landlords
landlords continually
continually maintain
maintain and
and renovate
renovate buildings
buildings
Residential Market
Employee Market
ƒRetail:
$67.1 million (low)
$87.4 million (high)
ƒRetail:
$24.7 million (low)
$25.5 million (high)
ƒFood and beverage:
$68.5 million (low)
$82.7 million (high)
ƒFood and beverage:
$29.7 million (low)
$30.7 million (high)
$ Total Downtown Expenditures $
Productivity =
Supportable Square Feet
:
ERA No: 17467 Downtown Columbia Retail Strategy
Page 23
Visitor Market
ƒRetail:
$5.2 million (low) $6.9
million (high)
ƒFood and beverage:
$27.1 million (low)
$31.5 million (high)
Based on expenditures and estimated productivity there is market support
for between 663,000 and 788,000 square feet of retail in downtown by
2012.
Discussion
Discussion
These estimates do not indicate demand for new space; a
portion of this market demand is already met by existing
retail that is either in good condition or in need of repair
and renovation
¾
¾ Charts
Charts reflect
reflect an
an average
average of
of high
high and
and low
low estimated
estimated supportable
supportable
square
feet
square feet
¾
¾ Residential
Residential market
market spending
spending accounts
accounts for
for the
the highest
highest percentage
percentage
¾
¾ IfIf job
job growth
growth occurs
occurs downtown
downtown then
then employee
employee spending
spending will
will
supplement
supplement the
the residential
residential market
market spending
spending
Estimated Supportable Square Feet
Retail Category and
Market
Supportable Square Feet by Use
Retail
43%
Eating &
Drinking
Places
57%
Supportable Square Feet by Consumer
Visitors
15%
Low
High
% of Category
Low
High
Retail
Residents
Employees
Visitors
Subtotal
191,631
70,526
14,941
277,098
249,767
72,753
19,699
342,219
69%
25%
5%
100%
73%
21%
6%
100%
Eating & Drinking Places
Residents
Employees
Visitors
Subtotal
210,814
91,485
83,375
385,674
254,522
94,374
96,999
445,894
55%
24%
22%
100%
57%
21%
22%
100%
Retail
Eating & Drinking Places
TOTAL
277,098
385,674
662,772
342,219
445,894
788,113
42%
58%
100%
43%
57%
100%
Source: ESRI Business Information Solutions; InfoUSA; ICSC Office Worker Retail Spending
Patterns (2003); Midlands Council of Government Research Department;South Carolina
Department of Parks, Recreation and Tourism; CoStar; Economics Research Associates,
2007
Employees
23%
Residents
62%
ERA No: 17467 – Downtown Columbia Retail Strategy
Supportable Square Feet
Page 24
Based on the amount of existing retail, there is market support for between
103,000 and 220,000 square feet of retail in downtown, by 2012.
Additional
Additional Supportable
Supportable Square
Square Feet
Feet
Existing
Existing Retail
Retail Space
Space
¾
¾ ERA
ERA estimated
estimated the
the amount
amount of
of existing
existing retail
retail space
space
utilizing
utilizing CoStar
CoStar (a
(a national
national industry
industry resource
resource for
for real
real
estate
estate information)
information)
¾
¾ Includes
Includes buildings
buildings that
that are
are classified
classified as
as retail,
retail, but
but not
not
currently
currently leased
leased to
to stores
stores
ƒƒ Much
Much of
of the
the market
market demand
demand applies
applies to
to these
these
buildings
buildings that
that should
should be
be renovated,
renovated, released,
released, or
or
replaced
replaced over
over time
time as
as retail
retail grows
grows..
Area
Main Street
Vista (including Lady Street)
Retail Square Feet
133,852
428,740
Lady Street
111,836
Total Downtown
562,600
Source: CoStar; Economics Research Associates, 2007
Downtown Additional Supportable Square Feet, 2012
Category
Supportable Square Feet
Low
Retail
Eating & Drinking Places
Total
274,915
390,641
665,555
Additional Supportable SF
102,955
Source: ESRI Business Information Solutions; InfoUSA; ICSC Office Worker Retail Spending
Patterns (2003); Midlands Council of Government Research Department;South Carolina
Department of Parks, Recreation and Tourism; CoStar; Economics Research Associates, 2007
¾
¾ New
New projects
projects or
or tenants
tenants in
in downtown
downtown and
and market
market conditions
conditions will
will influence
influence the
the supportable
supportable SF
SF
¾
¾ The
The SF
SF of
of retail
retail type
type does
does not
not indicate
indicate number
number of
of stores;
stores; stores
stores size
size varies
varies
¾
¾ Typical
Typical store
store sizes:
sizes:
ƒƒ Apparel
Apparel 500
500 -- 3,500
3,500 SF
SF
ƒƒ Accessories
Accessories 500
500 –– 3,500
3,500 SF
SF
ƒƒ Personal
Care
500
–
15,000
Personal Care 500 – 15,000 SF
SF
ƒƒ Household
Household Furnishings
Furnishings 3,500
3,500 –– 10,000
10,000 SF
SF
ƒƒ Restaurants
2,000
–
6,000+
SF
Restaurants 2,000 – 6,000+ SF
ƒƒ Quick
Quick Service
Service food
food 1,000
1,000 –– 3,500
3,500 SF
SF
Page 25
339,316
442,907
782,223
562,600
Existing Retail Estimate
Discussion
Discussion
ERA No: 17467 – Downtown Columbia Retail Strategy
High
Space Demand
219,623
Multiple factors will ultimately affect the supportable square feet and
success of retail over the long-term.
Factors Affecting Market Supportable Demand
660,000 SF
Ill-formed
715,000 SF
790,000 SF
Well-formed
Merchandise Mix
The success and appeal of a retail cluster is directly linked to its
merchandise mix and its function as a destination.
Competitive Context
New catalytic or competitive development projects can either facilitate
additional demand or monopolize market support
High
Low
Store Productivity
The trade areas are capable of spending a certain amount. If more
$$ are spent in one store less $$ will be spent elsewhere.
Factors Affecting Store Productivity
Low Sales / SF
Bad
Inaccurate
High Sales / SF
Location, Design, & Configuration
Merchandise Mix
Good
A store’s size, location, interior and storefront design are part of
total appeal for customers
Accurate
Price-points and merchandise should accurately reflect the
demographics and lifestyle characteristics of the consumers
Type of Store
Merchandise quality (price), quantity (inventory level), and mark-up,
as well as store size, influence retailers’ profitability (Sales / SF)
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 26
Table of Contents
I.
Project Overview
II.
Downtown Market Profile
I.
Existing Conditions - Qualitative Assessment
II.
Competitive and Surrounding Retail Districts
III. Stakeholder Interviews
IV. Summary Strengths and Weaknesses
III.
Retail Demand Analysis
I.
Methodology
II.
Customer Markets
III. Findings
IV.
Merchandise Mix Plan
V.
Implementation Program
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 27
The Merchandise Mix Plan on Main Street will differentiate downtown
from other retail districts and strengthen its potential as a retail
destination.
Main
Main Street
Street Merchandise
Merchandise Mix
Mix
¾
Surrounding Museum
ƒ
ƒ
ƒ
ƒ
ƒ
¾
Full service restaurants of varying cuisine
Café’s and coffee shops
Men’s
Women’s
Accessories
ƒ
ƒ
ƒ
Shoes
Hand bags
Watches/jewelry (complement Sylvan Bros)
¾
Home décor and furnishings
¾
Daily needs for employees and new residents
ƒ
ƒ
ƒ
ƒ
ƒ
¾
Personal Care
Stationary
Card/gift
Book Store
Retail Services
Focus on all blocks equally
ERA No: 17467 Downtown Columbia Retail Strategy
¾
Quick Service
¾
Deep-discount stores
¾
Retail Services
ƒ
Apparel
ƒ
ƒ
¾
Art galleries
Photography
Sculpture
Decorative Paper
Other cultural/art related uses
Food Uses
ƒ
ƒ
¾
Avoid
Avoid Leasing
Leasing To
To
Page 28
Ultimately (long-term) should ideally be in side streets
The Merchandise Mix Plan addresses not only types of retail, but also
location, Lady Street will need to focus on clustering retail.
Lady
Lady Street
Street Merchandise
Merchandise Mix
Mix
¾
Lady Street is very long, too long to have retail
the whole length
¾
Continue to cluster retail around Lincoln
¾
Retail growth must move towards Main Street to
benefit downtown as a whole
ƒ Both Vista and Downtown will be stronger if
connected
¾
Infill
Infill Development
Development
Build on existing apparel successes with more
apparel - younger appeal than Main Street
¾
Salons and services
¾
Creative offices such as architects, designers,
graphics, arts professionals
¾
Accessories
ƒ Shoes
ƒ Hand bags
ƒ Watches/jewelry (complement Sylvan Bros)
¾
Home furnishing showrooms
¾
Urban hardware/home supply
¾
Art supply
ƒ Canvas, easels, paints, brushes
ERA No: 17467 Downtown Columbia Retail Strategy
¾
Infill development along Lady Street is one of the
most critical aspects in downtown Columbia’s
retail growth
¾
Development must be designed to link Main Street
and the Vista
¾
The City and City Center Partnership must ensure
that the ground level spaces are designed
appropriately
ƒ
¾
Page 29
This is where people interact with the building,
If retail, then retail design specialists should be on
board
Successful urban retail requires more than indication of a quantitative
demand; it requires proper design, operations, and location.
¾
Retail functions best when double-sided (across the
street) and contiguous (side-by-side)
¾
Over time, storefronts should be built to the street
ƒ
¾
The quality of the recruited retail is critical for the
ultimate success of retail downtown
ƒ
ƒ
¾
No arcades or set backs
¾ Recommendation: Not all buildings MUST have retail in
the ground floor; however those on primary retail
streets should
¾ Recommendation: Assure that, when retail is present,
ground level and storefront designs are appropriate
ƒ
No retail is better than bad retail
Proper inventory levels, accurate merchandising, and
creative displays are all characteristics of successful retail
ƒ
ƒ
Not all retail is appropriate for the primary retail
streets
ƒ
Eventually, retail services should be located on side streets
“Great places are created
from the bottom up”
ƒ
Create specific mandatory design parameters for developers
that guide how retail storefronts address the street
Designed by professional retail architects or designers
Storefronts distinguished from each other with design – well
articulated
Monolithic design of tower not carried to pedestrian level
¾ Recommendation: Development and Design
guidelines are very important instruments for city to
maintain – what can change is streamline
¾ Recommendation: Parking garages should be
wrapped with retail, residential, or other uses
--Quote from successful urban
developer
Good
Bad
ERA No: 17467 Downtown Columbia Retail Strategy
Page 30
Table of Contents
I.
Project Overview
II.
Downtown Market Profile
I.
Existing Conditions - Qualitative Assessment
II.
Competitive and Surrounding Retail Districts
III. Stakeholder Interviews
IV. Summary Strengths and Weaknesses
III.
Retail Demand Analysis
I.
Methodology
II.
Customer Markets
III. Findings
IV.
Merchandise Mix Plan
V.
Implementation Program
ERA No: 17467 – Downtown Columbia Retail Strategy
Page 31
Plans and strategies are important tools, but their effectiveness is minimal
without a strong and sustained Implementation Program. ERA|DW will
jump-start and participate in the implementation of Merchandise Mix Plans.
Retail
Retail Recruiter
Recruiter
¾
Central component of the Implementation Program
ƒ
ƒ
ƒ
Completed comprehensive hiring process
City Center Partnership employee
Amy Stone – February 2008 start
¾
Non-commission based salary
¾
Brings viable prospects to landlords or their real
estate representative – Match Maker
¾
Ensure that great prospects are not lost
¾
Work with City or any other relevant agencies to
facilitate store opening
Downtown is underserved by most retail categories
Full-service restaurants should be welcomed in any
location
Vacancies and short-term leases are priority opportunity
sites for retail recruitment efforts
Phase I:
ƒTrain the Recruiter (Retail 101)
ƒIntroduce Recruiter to landlords,
brokers, retailers
ƒCommence property/tenant
information database
ƒGuide development of marketing
piece (ERA|DW and Recruiter)
Phase II:
ƒTrain the Recruiter (on-the-job)
ƒParticipate in training with other
Recruiters
ƒ Prospect in Columbia & evaluate
targets (ERA|DW & Recruiter)
ƒDevelop Salesforce database for
recruitment targets
Phase III:
ƒFollow-up with prospects (visits,
information, tours, etc.)
ƒGradually expand prospecting base
as appropriate (i.e. Charleston, Greenville,
Savannah, Asheville, Chattanooga, Charlotte)
ƒTackle challenging landlords
ERA No: 17467 Downtown Columbia Retail Strategy
Page 32
Beyond prospecting for retailers, other action items should be pursued as part of a holistic
downtown retail strategy and implementation program.
Build consensus and commitment to the Retail Strategy among property owners and stakeholders
Institute incentives to facilitate retail revitalization (tenant build-out, façade improvements, building
rehabilitation, etc.)
ƒ Forgivable Loan programs: St. Louis. MO: First round - $250,000 pool with $10,000 - $50,000 forgivable
ƒ Loan forgiven over time, so tenant required to pay attention to quality of business operations
ƒ Requires commitment from all downtown agencies and private sectors (i.e. banks for loans)
ƒ Can dramatically jump-start retail efforts
ƒ To have an impact, incentives MUST be strategically disbursed by location and to tenants that fulfill the Merchandise
Mix Plan
Enhance Storefront and Signage Design Guidelines for new development and renovation
ƒ Specific to appropriate retail design (i.e. display space, entryways, sign bands)
ƒ Individual storefronts should be differentiated from storefronts on either side and from floors above
ƒ Created by professional retail designer(s)
ƒ Mandatory or heavily incentivized
CCP
ERA No: 17467 Downtown Columbia Retail Strategy
City
Page 33
CAUTION:
Downtown retail revitalization occurs over long periods of time
Comparable
Comparable Revitalizations
Revitalizations
Austin, Texas:
¾
Two new stores in first year
¾
During the first two years Austin’s retail
recruiter contacted 600 prospective
retailers in order to secure deals with ideal
retailers in the Merchandise Mix Plan
¾
After two years six deals with new retailers
and three currently in negotiation
Philadelphia, Pennsylvania:
¾
Over 10 year involvement in downtown
Philadelphia, building rental rates have
increased on Chestnut and Walnut Sts.
¾
Chestnut St. saw an increase of $20-25 per
SF to over $65 per SF
¾
Walnut St. saw an increase from $18-34 to
an average of $90 per SF
ERA No: 17467 Downtown Columbia Retail Strategy
St Louis, Missouri:
¾
Downtown Works consulted to the St.
Louis Downtown Partnership in 2002 to
create and implement a Retail
Merchandising Plan and Leasing Strategy
¾
Between 2003 and the end of 2004, eight
new restaurants and ten new retailers
opened
¾
Since the beginning of 2005 and through
the end of 2006, 30 new retailers and 13
new restaurants opened
¾
By fall of 2007, 90 new stores and
restaurants had opened.
¾
Spaces that were originally renting for $1012 per square foot are now beginning
between $20-22 per square foot
Page 34
Downtown Columbia is ready to build upon its downtown
successes and add a new dynamic to downtown - retail!
Ultimately the Core will impact the identity and success of
the remainder of downtown; while recruitment efforts
address all areas in downtown, short-term efforts
primarily focus on Main Street and Lady Street in the Core
ERA No: 17467 Downtown Columbia Retail Strategy
Page 35
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ERA No: 17467 Downtown Columbia Retail Strategy
Page 36