Retail Market Research &
Strategic Plan Overview
1 TABLE OF CONTENTS
TABLE OF CONTENTS ....................................................................................... 1
DEFINITIONS ....................................................................................................... 1
INTRODUCTION ................................................................................................. 2
SUMMARY OF METHODOLOGY FOR RETAIL ANALYSIS ........................ 2
EXECUTIVE SUMMARY ................................................................................... 3
BRUNSWICK COUNTY OVERVIEW ................................................................ 4
SWOT ANALYSIS ........................................................................................... 100
BRUNSWICK COUNTY TRAFFIC AND ECONOMIC DRIVERS............... 144
LELAND, NC OVERVIEW ................................................................................ 19
SUPPLY, NC OVERVIEW ................................................................................. 29
SHALLOTTE, NC OVERVIEW ....................................................................... 355
SOUTHPORT, NC RETAIL OVERVIEW ....................................................... 444
REGIONAL SHOPPING CENTER OPTIONS .................................................. 52
RECOMMENDATIONS ..................................................................................... 56
CONCLUSION .................................................................................................... 62
SOURCES ........................................................................................................... 63
2 DEFINITIONS
GAP and/or Leakage: expenditures on goods and services being purchased outside of a defined area by the population
living within the defined area.
Lifestyles and/or Tapestry: Tapestry Segmentation represents the fourth generation of market segmentation systems that
began more than 30 years ago. The 65-segment Tapestry Segmentation system classifies US neighborhoods based on their
socioeconomic and demographic compositions.
GLA: Gross Leasable Area
SF: square feet
Shop Space: less than 10,000 sf
Junior Box: 10,000 - 50,000 sf
Big Box: more than 50,000 sf
Out Lot or Out Parcel: land between 0.5 and 3 acres associated with a shopping center
VPD: vehicles per day NCDOT 2012
US/NC: Highways
1
3 INTRODUCTION
Retail Strategies, LLC was commissioned by the Brunswick County Economic Development
Commission in April 2014 to assess the retail and restaurant expansion potential for four focus areas
in the county.
4 SUMMARY OF METHODOLOGY
Four focus areas were determined by a combination of existing national retail chains and areas of
high traffic volume. The four primary points of interest:
1.
2.
3.
4.
Leland: US 17 & Village Road
Supply: US 17 & NC 211
Shallotte: Main Street & Holden Beach Road
Southport: NC 133, 211 & Long Beach Road
The following information has been compiled to draw conclusions and provide Brunswick County
with recommendations.







Demographic Reports within Radius Rings, Drive Times and Customized Regional Trade Area
Aerial Maps with existing retailers and restaurants, traffic counts and opportunity zones
Daytime Population Maps – School Map and Employer Map
Tapestry Lifestyles
Retail Gap Analysis – measures retail leakage and opportunities
List of prospective retailers to recruit with contact information and site selection criteria
SWOT Analysis – Highlighting the strengths, weaknesses, opportunities and threats for the retail growth in
County.
 Retailer Strategic Plan- Identification of the top four areas for potential retail growth within the next year and
steps on how to pursue goals. The plan will address new development, redevelopment and reducing vacancy
rates.
 Retail Prospect List - Summary of the primary retail gaps inclusive of the key retailers to be pursued.
 Online Project Management Software – BCED will have access to all supporting materials and research used to
create this report for one year through Basecamp.
Approximately twenty different sources have been used to compile the findings and draw
conclusions. All sources are deemed to be accurate although not guaranteed. Assumptions drawn
are based on a stable economy maintaining a growth of retail year over year same store sales at a
rate of three to five percent over the next five years.
2
5 EXECUTIVE SUMMARY
Brunswick County is located in the Southeastern portion of North Carolina and is a member of the
Cape Fear Council of Governments. The county is geographically located between the Wilmington
NC MSA and Myrtle Beach SC MSA. The two are city centers approximately 70 driving miles apart,
and are connected by 50 miles of US Highway 17 through Brunswick County. There are 1,050 square
miles in the county, with 855 square miles consisting of land.
Brunswick County is the fastest growing county in North Carolina and is in the top ten for tourism
expenditures. There are four beaches, three islands, seven townships, twelve cities and towns, and
twenty-seven unincorporated communities in Brunswick County. The county seat is Bolivia, with a
population of 143 people in 2010. Four areas were chosen for the purpose of this study: Shallotte,
Supply, Southport, and Leland.
The strongest opportunity for retail growth in Brunswick County is currently in Leland. The close
proximity to Wilmington and the concentrated residential growth will drive additional retail to the
market. Because Supply and Shallotte offer separation from Wilmington and Myrtle Beach at
approximately 30-45 minute drive time from each, it hosts the potential to support a new regional
shopping center to capture the categories of retail missing in the county. The highway network in
Supply provides the most convenient access to the rooftops with available land to develop. A long
term strategy should be made to plan for a regional shopping center.
Southport and Shallotte cater to the strong influx of tourist coming to Brunswick County. Beyond
the convenience categories of goods and services, tourists prefer local and regional concepts that
provide a unique experience and purchasing options. A proposed riverfront development in
Shallotte will support this experience for locals and tourist alike. Southport’s retail node services
the more affluent areas of Oak Island and St. James. Southport’s quaint downtown and national
recognition as a setting for popular films and television shows should be protected from chain heavy
national retail growth. A more organic focus on local and regional concepts would serve the city
better long term.
3
6 BRUNSWICK COUNTY OVERVIEW
The largest MSA to the south is the Myrtle Beach-Conway-North Myrtle Beach MSA. Brunswick
County is the only North Carolina county to be included in this MSA. With approximately 14
million tourists per year, a 2013 population estimate of 465,391 and a growth rate of more than 12%
annually, Myrtle Beach is a dominate retail hub for consumers and tourists for the entire Eastern
half of the country and beyond.
The second largest MSA to the north is Wilmington, NC, which has a 2012 estimated census
population of 263,423. The Port of Wilmington is the busiest port in North Carolina. The largest
ammunition base in the nation, Military Ocean Terminal Sunny Point, and the Army’s primary East
Coast deep-water port are located here. The Green Swamp is a swamp that lies in Brunswick and
Columbus counties. The Natural Conservancy manages 17,242 acres in the Green Swamp Preserve.
Despite the restrictions from development in the Green Swamp, Brunswick County is the fastest
growing county in North Carolina and is the 47th fastest growing county in the nation. From July
2012 to July 2013 the county added 3,104 residents for a total population of 115,301, according to the
census count. The county will see new retail and restaurant chains identify sites for expansion to
accommodate the growing population.
Per the 2013 Economic Impact of Travel on North Carolina counties, Brunswick County generated
over $470 million in tourism related expenditures and employed more than 5,000 people in 2013.
This is a 5.5% increase from 2012. Of the 100 counties in the state, Brunswick ranks 10th in tourism
expenditures.
The existing population ranks higher than the national average in age, median home value and
percentage of home vacancy. Home vacancy rate is due to vacation homes and seasonal rentals. It
ranks lower than the national average in people per household. All demographic assessments are
included, as the demographic data providers have supplied based on their methodologies. Almost
half of the population is over the age of 55 and have higher than average net worth. The highestet
percentage of 2013 annual disposable income in the county is among the ages of 55-64 in the amount
of $50,000 - $74,000. About half of the population over the age of 25 has a college education. We
believe that a majority of the retirees are educated and have higher disposable incomes than what
is reflected by industry demographic data providers. Additionally, tourism expenditures are
difficult to track and incorporate in potential spending.
The highest population density exists in Leland and along the Atlantic Coast. The highest density
of households is in the town of St. James and on the north-south corridor of NC 133 from St. James
to Wilmington. The highest concentration of median household income exists in St. James, Bald
Head Island, Leland and Shallotte. Population over the age of 55 is concentrated in Leland and St.
James.
The county has a surplus of grocery stores. It is lacking national retail chains in the categories of
hobbies, pets, apparel and restaurants. Multiple retail and restaurant chains are expanding in North
Carolina and have potential to open new, profitable locations in Brunswick County defined within
this study.
4
Population within a 5 mile radius ranks in the following order for the 4 study areas.
Leland: 52,442
Shallotte: 15,669
5
Southport: 14,808
Supply: 8,527
6
Customized trade area populations rank in the following order:
1.
Shallotte 2013 population estimate of 44,479
2. Leland 2013 population estimate of 33,458
3. Southport 2013 population estimate of 31,623
4. Supply 2013 population estimate of 6,067
A destination regional trade area combining the potential regions of Shallotte, Southport, and
Supply has a population estimate of 81,826. Leland is not included in this trade area due to it’s
proximity to Wilmington.
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8
9
7 SWOT ANALYSIS
STRENGTHS
 Brunswick County is the fastest growing county in North Carolina and the 47th fastest growing county in the
nation. From July 2012-July 2013 the county added 3,104 residents for a total population of 115,301, according to
the census count. The population from April 2010 to July 2013 grew at a rate of 7.3%. The 5 year projected growth
rate from 2013 to 2018 is 11.8%. The county will see new retail and restaurant chains identify sites for expansion
to accommodate the growing population.
 More than 40% of Brunswick County households are retiree age, who have significantly higher average and
median disposable incomes when compared to the market as a whole.
 Retail leakage (gaps) have been identified by sector to prove Brunswick County can sustain new retailers.
 Southport and Shallotte both attract a large number of tourists, considerably increasing their seasonal
population. Per The 2013 Economic Impact of Travel on North Carolina Counties, Brunswick County generated
over $470 million in tourism related expenditures in 2013. This is a 5.5% increase from 2012.
 Residential growth is among the highest in the state, at 52.1% from 2000-2010.
10
WEAKNESSES
 NCDOT calculates traffic counts in the winter, which does not capture the impact of tourists. Tourists are a
significant source of the traffic counts in this market; if NCDOT were more detailed and timely, a higher amount
of vehicles per day would be reflected on the major highways.
 Brunswick County falls in the retail trade area of Wilmington (NC) and Myrtle Beach (SC), causing many of the
residents to do their shopping outside of the county. The distance from Wilmington to Myrtle Beach through
Brunswick County is 74 driving miles; 50 of those miles are on US 17 through Brunswick County. The retail
synergy located in those markets motivates consumers to leave Brunswick County for their goods and services.
 Although Brunswick County is one of the largest NC counties by land mass, retailers prefer to locate in areas of
high density in close proximity to their core customer. The large land lots for housing allow for a higher home
value but less density. Multifamily housing units are less prominent than large residential subdivisions.
 The high seasonal population would suggest that a great many homes are not considered primary residence.
The county population swells in the summer from residents either renting or living in their second home for
only a portion of the year. The high residential vacancy rates threaten the store sales and staff turn over during
the off season.
 A large regional designation shopping center does not exist. A regional shopping center would create the critical
mass of national retailers to change consumers’ shopping patterns to shop in Brunswick County for soft goods.
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OPPORTUNITIES
 New retail and restaurant chains will identify sites for expansion to accommodate the
growing population.
 Both Southport and Shallotte have strong seasonal population impacts. The economic
impact of tourist shopping patterns should be proven by a credible source and used in
aggressively marketing the potential consumer expenditure dollars available to new
retailers considering the market.
 The employment base, residential density and strong retail market in Wilmington offers
advantages for Leland to capitalize on the close proximity to the city. Existing regional and
local chains can consider opening in Leland.
 Retail Leakage in each of the retail trade areas indicates the opportunity to recruit new retail
and restaurants to Shallotte, Supply, Southport and Leland. Additionally, these retail GAPs
could also be filled with new franchise opportunities or by assisting the current retailers in
each market with the expansion of their product and service offerings. Retirees and
Veterans qualify as strong franchise owners.
 The retirees’ strong buying power yields opportunities for higher-end stores, pet stores, and
hobby/craft stores to enter and be sustainable in the market. It also provides opportunities
for retailers looking to capture the spending on adult age children and grandchildren by the
age 55+ segment. Several of the national retail chains that service retiree’s consumer
shopping needs are not currently located in Brunswick County.
 Brunswick County falls within the distribution route of supply trucks providing goods to
existing retail stores in Wilmington (NC) and Myrtle Beach (SC).
 Although Supply is not currently incorporated and has limited retail development, the
location offers enough separation from Wilmington (NC) and Myrtle Beach (SC), to support
additional retail expansion with limited cannibalization on existing stores located in those
two markets. The fifth highest traffic count in the county is at the intersection of Highway
17 & Southport-Supply Road.
 A regional destination shopping center in Central Brunswick County that provides a unique
experience for retirees and tourists would create the draw for a successful shopping hub
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THREATS
 Retail expansion among the catalyst big box anchor tenants such as Target, Lowe’s Home
Improvement, Home Depot, Costco, Sam’s, Kohl’s and JCPenney is limited in the United
States. Shopping centers that are actively being developed today are primarily grocery
anchored centers. The new Lowe’s Foods and the remodeling of the Food Lion suggest that
Brunswick County is near saturation point in the grocery sector. The anchor tenants for a
new shopping center would most likely be comprised of three to four junior boxes. This
requires time and coordination from an experienced developer.
 Should a regional designation shopping center be developed in Supply, it will potentially
cannibalize the store sales of existing retail businesses in the Shallotte and Southport retail
corridors. New to market retail brands should be the focus of a regional center to combat
this issue.
 Tourism contributes to a volatile market. Tourists are lightly considered in retailers’ site
selection process when estimating sales projections for potential profitability of a new
locations. The seasonal and unreliable shopping patterns of tourists pose a threat.
 Estimated sales volumes of retailers may project lower than the required amount due to
lack of residential density and inability to project seasonal tourists’ spending habits. For a
store to be profitable, the cost of operation must be low. A public/private partnership will
need to be considered to offset the developer’s costs and keep rents low.
 Baby Boomers are likely to spend a majority of their disposable income on medical expenses,
as well as supporting their children, grandchildren, and parents. This will reduce their
ability to spend on entertainment, food, furniture and apparel.
 Baby Boomers are e-commerce savvy. Although only 6% of overall retail sales in 2013 are
online, it is the fastest growing trend threating brick-and-mortar locations. Online
purchases pose a threat to profitable brick-and-mortar locations. Boomers are value
oriented and will take the time to find the best value for purchases. They prefer an
experience to a product.
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8 BRUNSWICK COUNTY TRAFFIC AND ECONOMIC DRIVERS
TOP TRAFFIC COUNTS
14
MAJOR EMPLOYERS
15
Company
Category
Employee Range
Brunswick County Board of Education
Education & Health Center
1000+
County Of Brunswick
Public Administration
1000+
Wal-Mart
Trade, Transportation & Utilities
500 - 999
Progress Energy Carolinas
Trade, Transportation & Utilities
500 - 999
Novant Medical Center
Education & Health Services
500 - 999
Brunswick Electric Coop
Education & Health Services
250 - 499
Food Lion
Trade Transportation & Utilities
250 - 499
Department of Defense
Public Administration
250 - 499
Dosher Memorial Hospital
Education & Health Services
250 - 499
Marine Terminals Corp. East
Trade Transportation & Utilities
250 - 499
Bald Head Island
Financial Activities
250 - 499
Coca Cola
Manufacturing
100 - 249
Brunswick Public Utilities
Utilities
100 - 249
Lowes Home Centers
Trade Transportation & Utilities
100 - 249
Lowes Food Stores Inc
Trade, Transportation & Utilities
100 - 249
Troon Golf LLC
Leisure & Hospitality
100 - 249
Securitas Security Services USA Inc
Professional & Business Services
100 - 249
Victaulic Co Leland Facility
Manufacturing
100 - 249
B & K Coastal LLC
Construction
100 - 249
Atlantic Telephone Membership
Information
100 - 249
SBH Wilmington LLC
Education & Health Services
100 - 249
Brunswick Cove Living Center LLC
Education & Health Services
100 - 249
Harris Teeter Inc
Trade Transportation & Utilities
100 - 249
Town of Oak Island
Public Administration
100 - 249
Archer Daniels Midland Co
Manufacturing
100 - 249
Ocean Ridge Plantation Golf Inc
Leisure & Hospitality
100 - 249
Coating and Adhesive Corp
Manufacturing
100 – 249
MEDICAL
Major medical centers in the area include Brunswick Novant Medical Center and Dosher Memorial
Hospital.
Brunswick Novant Medical Center is located in Bolivia, NC and employs 650 individuals and has
150 volunteers. The hospital features 78 all-private patient rooms and five operating rooms.
Dosher Memorial Hospital, located in Southport, NC, consists of 100 beds and focuses on outpatient
surgeries and procedures. They have a staff of 350, a medical staff of almost 50 physicians, and a
volunteer force of almost 200.
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SCHOOLS
17
School Name
West Brunswick High School
South Brunswick High School
North Brunswick High School
South Brunswick Middle School
Leland Middle School
Belville Elementary School
Supply Elementary School
Southport Elementary School
Virginia Williamson Elementary School
Union Elementary School
Shallotte Middle School
Waccamaw School
Town Creek Elementary School
Bolivia Elementary School
Cedar Grove Middle School
Lincoln Elementary School
Jessie Mae Monroe Elementary School
Brunswick County Academy
Students
Teachers
1389
1050
917
776
764
743
708
699
675
659
617
546
493
475
474
449
438
136
85
70
61
42
45
37
42
40
41
37
38
37
32
28
30
31
26
17
HIGHER EDUCATION
Brunswick Community College - Supply, NC; enrollment: 1,482
Cape Fear Community College - Wilmington, NC; enrollment: 3,987
University of North Carolina - Wilmington - Wilmington, NC; enrollment: 11,028
Miller-Monter College - Wilmington, NC: enrollment: 1,662
Horry-Georgetown Technical College - Conway, SC; enrollment: 2,962
Coastal Carolina University - Conway, SC; enrollment: 7,254
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9 LELAND, NC OVERVIEW
DEMOGRAPHIC OVERVIEW
The Town of Leland 2010 census population was 13,527. Within a 3 mile radius ring of Hwy 74 &
Village Road, the 2013 population is 15,344. In 2000, the Census count in the area was 8,267. The
rate of change since 2000 was 5.82% annually. Current median household income is $49,170 in a 3
mile radius.
Within the customized trade area, the 2013 population is 33,495. The five-year projection for the
population in the area is 37,155 representing a change of 2.10% annually from 2013 to 2018. Currently,
the population is 49.1% male and 50.9% female.
The household count in 3 miles has changed from 3,517 in 2000 to 6,779 in the current year, a change
of 6.19% annually. The five-year projection of households is 7,525. Average household size is
currently 2.25 people per household.
The largest neighborhoods include Brunswick Forest, Compass Pointe, Grayson Park, Wedgewood,
Magnolia Greens, Waterford, Westport, and Windsor Park. Currently, 66.8% of the 14,907 housing
units in the trade area are owner occupied; 23.7%, renter occupied; and 9.6% are vacant. This is a
1.6% decrease in vacancy from 2010. Currently, in the U.S., 56.5% of the housing units in the area
are owner occupied; 32.1% are renter occupied; and 11.4% are vacant. The annual rate of change in
housing units since 2010 is 2.64%. Median home value in the area is $156,719. In five years, median
value is projected to change by 4.68% annually to $196,987.
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20
LIFESTYLES
Approximately 45% of the households in Leland are defined as the Tapestry Lifestyle: Midland
Crowd. Most income is earned from wages and salaries; however, self-employed ventures are
slightly higher for this segment than the national average. Unemployment is below average. Half
of the residents who work hold white collar jobs. More than 45 percent of the residents aged 25
years and older have attended college; 16 percent have earned a bachelor’s or graduate degree.
Midland Crowd residents live in housing developments in rural villages and towns throughout the
United States, mainly in the South. Three-fourths of the housing was built after 1969. The home
ownership rate is higher than the national rate average. Two-thirds of the housing is single-family
houses.
Midland Crowd’s rural location and it’s traditional lifestyle dictate their product preferences. A
fourth of households own three or more vehicles, typically own or lease a truck, and many own
motorcycles. Proficient do-it-yourselfers, they work on their vehicles, homes, and gardens and keep
everything in tip-top shape. They hunt, fish, and do woodworking. Dogs are their favorite pets.
They go to the drive-through restaurants such as McDonalds and Taco Bell.
CONSUMER SPENDING HABITS
 Pets – Residents are more likely to own a cat and/or dog than the national average and, on average, are thirty to
fifty percent more likely to spend money on the health and welfare of their pets
 Sports – Households are big fans of anything related to auto racing and both college and pro football
 Health & Medical – the Leland trade area has more families with young children meaning the focus shifts to
products and services focused on children’s health and medical products and services – particularly nonprescription medications
 Sports & Fitness – households are avid about participating in outdoor activities. Like the other Brunswick
County communities - fishing (fresh and salt water) is one of the most popular leisure activities. However, the
participation rate in football, basketball and baseball by adults signals a much more active children’s rec league
participation rate. Households also show a greater propensity to purchase sports related clothing
 Lawn & Garden – the activity is much more focused on maintenance versus the other Brunswick communities
 Home Improvement – Home owners in this area are much more likely to make home improvements and
purchase new home furnishings than the average U.S. household
TRAFFIC AND ECONOMIC DRIVERS
The largest traffic count in the county is 32,000 VPD on us 17 in west Leland.
Area Schools:
Belleville Elementary School
Lincoln Elementary School
Leland Middle School
North Brunswick High School
Town Creek Elementary School
Area Employers:
B & K Coastal LLC
Food Lion LLC - Leland
Harris Teeter Inc
SBH Wilmington LLC
Victaulic Company
Walmart Stores Inc - Leland
Brunswick Cove Inc
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Leland
Leland
Leland
Leland
Winnabow
RETAIL OVERVIEW
Leland’s retail tenant mix is certainly impacted by the proximity of Wilmington. Leveraging the
Wilmington consumer provides Leland with regional and destination recruitment opportunities.
At 32,000 vehicles per day, US 17 holds the largest traffic count in the county. The results of an indepth traffic study may further support these regional retail recruitment targets.
Leland has three distinct retail districts. The intersection of Village Road and US Highway 74 is the
first major retail node when entering Brunswick County. Both Piggly Wiggly and Food Lion anchor
separate shopping centers in this area. CVS, Walgreens, quick service restaurants, and an auto parts
store are located here. The second retail corridor is on US 17, only three miles south of Village Road.
A Walmart Supercenter and Harris Teeter are located here, servicing about a dozen Leland and
Belleville residential subdivisions. The third retail district is anchored by Lowe’s Foods, and is
located in front of the Brunswick Forest residential development.
22
The eight largest neighborhoods in Leland are plotted on the map showing their location in relation
to the three main retail corridors, and to the local schools.
Residents of Grayson Park and Brunswick Forest have to drive north to get to all of the local schools,
passing by the two main retail corridors on Highway 17. Grayson Park is comprised of 150 homes,
while Brunswick Forest has over 1600 homes and 3000+ residents. City and County officials expect
that once Brunswick Forest is fully developed it will include as many as 7500 homes and 16,000
residents.
Wedgewood consists of just over 100 homes and is situated just north of the Piggly Wiggly shopping
center off Fairview Road. These residents have to travel past this center to get to and from all of the
local schools.
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BRUNSWICK FOREST RETAIL COMPLEX
Ample land is available adjacent to the Lowes Foods center for a big box anchor. Retail categories
that make sense for this area included: General Merchandise, Home Center, Department, Sports,
and Restaurants. This would also be an ideal location for an entertainment use, such as a theater
complex. This addition would serve the entire Northern part of the county and the Southern part
of Wilmington.
Suggestions: Lowe’s Home Improvement, Home Depot, Harbor Freight, Movie Theater, Gander
Mountain, Belk, Kohl’s, Five Below, Big Lots!, Tuesday Morning, Ashley Furniture, Golden Corral,
Chick-fil-A, Fish Bites, Cape Fear Seafood Company
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WALMART SUPERCENTER & HARRIS TEETER AREA
Rapid growth of Brunswick Forest, Compass Point, and developments along River Road, suggests
that there is a need for jewelry, family clothing, furniture, lawn & garden and hardware stores in
Leland. This area is prime for big box retail and build to suit opportunities surrounding Waterford
Village, a Harris Teeter anchored center with GLA of 118,252 sf in Leland. Listing company is
Weingarden Realty out of Houston, TX.
25
Harley and Associates Commercial Realtors, Donald Harley, Jr., have the listing on 26 acres east of
Harris Teeter. The asking price is $3,950,000. There are several out parcels ranging from .59 acres
to 2.05 acres also available.
Harley and Associates Commercial Realtors, Donald Harley, Jr., also have the listing on 44 acres
east of Walmart Supercenter. The asking price is $3,500,000.
26
The Walmart Shadow Center, Shoppes at Westgate, have shop space available. A 1.6 acres Walmart
Outparcel is available for sale or lease.
Suggestions for available properties: Lowe’s Home Improvement, Home Depot, Harbor Freight,
Theater, Gander Mountain, Belk, Kohl’s, Five Below, Big Lots!, Tuesday Morning, Ashley Furniture,
Hibbett Sports, Play It Again Sports, Cato, Stage Stores (Peebles/Goody’s), Factory Connection, Plato,
Aqua Fedora, Edge of Urge, Firehouse Subs, Biscuitville, Wing Stop, Smoothie King, Chops, PetSense,
PetSupplies Plus
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LELAND-VILLAGE ROAD AREA
Convenience shopping categories to catch traffic to and from running errands or work such as
restaurant, fitness, dry cleaners, nail and hair salons, office supplies and other service oriented
concepts will work here.
Suggestions: Ollie’s Bargain Brands, Aaron’s Rents, Schewels, Mattress Firm, Kimbrell’s, Badcock
Furniture, FedEx Office, Little Caesars, Dunkin Donuts, Starbucks, Jimmy Johns, Cookout, Papa
Murphy’s, Curves, Planet Fitness, Snap, Workout Anytime, Weight Watchers, Our Crepes and More,
Flower World
LEAKAGE CATEGORIES
Category
Home Centers
$38,830,498
# of
Retailers
1
General Merchandise Stores
$18,136,466
2
80,000
Limited-Service Eating Places
$17,246,925
5
20,000
Department Stores
$15,680,077
1
40,000
Family Clothing Stores
$7,529,894
2
30,000
$6,589,186
2
20,000
$5,824,727
1
20,000
Jewelry Stores
$4,954,133
1
5,000
Office Supply and Stationary
Stores
TOTAL
$4,122,697
1
15,000
$118,914,603
16
310,000
Furniture
and
Furnishings Stores
Sporting Goods Stores
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Gap
Home
Potential
Square Feet
80,000
SUPPLY, NC OVERVIEW
DEMOGRAPHIC OVERVIEW
Supply is an unincorporated community in Brunswick County at the intersection of US Highway 17
and Southport-Supply Road NC 211. In the identified trade area, the current year population is 6,067.
The rate of change since 2010 was 3.03% annually. The five-year projection for the population in the
area is 6,889, representing a change of 2.57% annually from 2012 to 2017. Currently, the population
is 50.0% male and 50.0% female. The median age in this area is 45.6, compared to U.S. median age
of 37.3. The household count in this area has grown from 2,132 in 2010 to 2,367 in the current year,
an increase of 3.27% annually. The five-year projection of households is 2,712, a change of 2.75%
annually from the current year total. Average household size is currently 2.44. The number of
families in the current year is 1,742 in the specified area. Current median household income is
$39,737 in the area. Median household income is projected to be $47,635 in five years. Currently,
63.7% of the 2,846 housing units in the area are owner occupied; 19.4%, renter occupied; 16.8% are
vacant. In 2010, there were 2,713 housing units in the area - 61.6% owner occupied, 17.0% renter
occupied, and 21.4% vacant. The annual rate of change in housing units since 2010 is 2.15%. Median
home value in the area is $160,757. In five years, median value is projected to change by 8.41%
annually to $240,775.
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30
LIFESTYLES
Southern Satellites is the Tapestry Lifestyle of 38.2% of the household in the trade area. Sixty
percent participate in the labor force, slightly below the US percentage. Most households earn
income from wages and salaries; around 28 percent receive Social Security benefits. The
manufacturing and service industry sectors provide most of their jobs. Educational attainment is
lower than the national level; 16 percent of residents aged 25 years and older have not graduated
from high school.
Eighty percent of these households are in the South. Primary housing types in these neighborhoods
are newer single-family dwellings for two-thirds of the households; 30 percent live in mobile homes.
The home ownership rate is around 81 percent. Nearly two- thirds of the housing was built after
1969. Vacancy rates are slightly above average.
These rural residents enjoy country life. Fishing and hunting are two favorite leisure activities, and
Southern Satellites residents spend money for magazines, clothes, and gear related to these interest.
Because cable is not always available, many residents own pets. They work in their vegetable
gardens and might own equipment such as riding mowers and tillers to help with outdoor chores.
Most households have two or more vehicles to meet their transportation needs; they prefer
domestic cars and many drive trucks.
They read newspapers and magazines infrequently; however they listen to country music and watch
fishing programs, NASCAR races, and country music programs on TV. Owning personal computers
and going online isn’t important to these residents.
CONSUMER SPENDING HABITS
 Sports & Fitness – households in this area show a greater propensity to participate in several
outdoor activities - fishing (fresh and salt water), power boating, camping, hunting, and
horseback riding. The number of adults participating in Basketball, Baseball and Football
indicates a robust children’s rec league program
 Pets – Residents are more likely to own a dog and much more likely to spend money on the
health and welfare of their pets
 Sports – Households are big fans of college football, NASCAR, college basketball, the NFL,
major league baseball and the Olympics
 Health & Medical – in comparison to households across the U.S. – Supply area households
are much more likely to purchase prescription and non-prescription drugs, pain relief
medications and prescription glasses. In most categories, consumers are more likely to
purchase personal care items and visit a health specialist
 Home Improvement – Home owners in this area are more likely to purchase home
improvement tools
 Lawn & Garden – Households show a much higher propensity to own lawn & garden
equipment and spend money on maintaining their yard & gardens
 Home Furnishings – Supply households show a much higher tendency to purchase
furniture, linens and other home furnishings than the average U.S. household
31
TRAFFIC AND ECONOMIC DRIVERS
US 17 carries 25,000 vehicles per day to the west and NC 211 carries 13,000 to the south.
Area Schools:
Virginia Williamson Elementary School
Bolivia Elementary School
Brunswick County Academy
Early College High School
Supply Elementary School
Cedar Grove Middle School
Bolivia
Bolivia
Bolivia
Bolivia
Supply
Supply
Area Employers:
Brunswick Community College
Brunswick County Board of Education
Brunswick County Public Utilities
Novant Medical Center
County of Brunswick
Brunswick Electric
RETAIL OVERVIEW
Currently the retail landscape in Supply is sparse with 6 quick service restaurants and a convenience
store at the intersection of US 17 and NC 211. Supply was chosen to be included in the retail study
for a few reasons beyond the existing retail. The area offers strong traffic counts, available land on
the highway and separation from Wilmington and Myrtle Beach.
32
The traffic count of 25,000 VPD on US 17 is the fifth highest in the county. Although NC 211 is only
13,000 VPD south of US 17, it leads to Southport where the traffic increases to the second highest in
the county of 31,000 VPD. Residential feeder roads funnel onto both of these highways as the
dominate transportation corridors to travel throughout the county. Should a regional center with
shopping, entertainment and dining exist at this intersection, traffic counts would dramatically
increase on NC 211.
The southwest quadrant of land could provide access to US 17 and NC 211 and allow for development
of a regional shopping center. Existing buildings would need to be removed. This would be the
most attractive site given the traffic increase from 21,000 east of NC 211 to 25,000 west of NC 211.
The northeast quadrant of land is also available for development. The existing Hardee’s and new
Bojangle’s may create challenges with the master development and visibility of a regional shopping
center. In addition, the traffic counts are less on both highways for this quadrant of land.
Supply allows the separation of 35 minutes or 32 driving miles to the intersection of Market Street
and New Center Drive in Wilmington where the closest dominate retail node with Target and a
cluster of junior box tenants exists to the north. To the south the closest dominate retail node is
Tanger Outlet Mall US17 and NC22. This location is 43 minutes or 38 miles south. Walmart is 14
minutes or 30 miles Southeast of Supply in Southport.
33
LEAKAGE
The existing Supply trade area being serviced by the retailers today consists of 6,000 people. If a
regional center were not developed in Supply, the market could still support a dozen new retailers
and restaurants.
Category
Food and Beverage
$4,428,268
# of
Retailers
2
General Merchandise
$3,464,682
1
10,000
Clothing/Clothing Accessories
$2,477,058
1
5,000
Health and Personal Care
$2,317,927
1
10,000
Limited-Service Eating Places
$2,036,524
2
5,000
Home and Garden
$1,919,442
1
10,000
Full-Service Restaurants
$1,542,449
2
8,000
Sporting Goods, Hobby, Music
Instruments
Furniture/Home Furnishings
$1,085,314
1
5,000
$878,476
1
5,000
$20,150,140
12
66,000
TOTAL
Gap
Potential
Square Feet
8,000
It is recommended that leakage numbers less than $2 million dollars are serviced by local retail
concepts or franchises rather than national chain stores. In addition, although there is a clothing
and accessories gap, most will require a cluster for cross shopping so this is not a viable category
for expansion in existing trade area.
Suggestions: Walmart Express (15k), Family Dollar, Golden Corral, Hungry Howie’s, Del Taco,
Wendy’s, Fred’s Pharmacy, CVS, Walgreens, NextCare Urgent Care, FastMed Urgent Care, Medac
Urgent Care, Aldi, Love’s Truck Stop, Sheetz
34
10 SHALLOTTE, NC OVERVIEW
DEMOGRAPHIC OVERVIEW
The Town of Shallotte 2010 census population was 3,675. According to ERSI, in a 3 mile radius, the
2013 population is 7,332. In 2000, the population was 4,847, reflecting a rate of change since 2000
of 3.46% annually. In the identified trade area, the current year population is 44,479. The five-year
projection for the population in the area is 48,602 representing a change of 1.79% annually from
2013 to 2018. Currently, the population is 48.9% male and 51.1% female. The median age in this
area is 51.5, compared to U.S. median age of 37.3.
The household count in this area has changed from 18,572 in 2010 to 19,666 in the current year, a
change of 1.78% annually. The five-year projection of households is 21,619, a change of 1.91%
annually from the current year total. Average household size is currently 2.25.
The number of families in the current year is 13,529 in the trade area. Current median household
income is $41,994 in the area. Median household income is projected to be $50,275 in five years.
The annual rate of change in housing units since 2010 is 2.40%. Median home value in the area is
$167,401. In five years, median value is projected to change by 6.76% annually to $232,165.
Currently, 38.2% of the 39,298 housing units in the area are owner occupied; 11.9%, renter
occupied; and 50.0% are vacant. Currently, in the U.S., 56.5% of the housing units in the area are
owner occupied; 32.1% are renter occupied; and 11.4% are vacant.
35
36
LIFESTYLES
The dominate lifestyle in the trade area at 24% is Senior Sun Seekers. Many Senior Sun Seekers
residents are retired or are anticipating retirement. More than half of the households receive Social
Security benefits. Approximately one-third of the households also receive retirement income.
Because a large proportion of the population is older, the education attainment is far lower than
the US average.
These neighborhoods are primarily in the South and West; 43 percent are in Florida. Escaping from
cold winter climates, many Senior Sun Seekers residents have permanently relocated to warmer
areas; others are “snowbirds” that move south for the winter. This market has the third highest
proportion of seasonal housing of all the Tapestry segments. Favorite areas are in Florida, California,
and Arizona. The home ownership rate is 77 percent. Single-family dwellings comprise almost half
of the housing inventory; mobile homes comprise nearly 40 percent. Most housing was built after
1969.
Senior Sun Seekers residents frequently take car trips and prefer to stay in reasonably priced motels
or hotels such as Days Inn, Super 8, and Comfort Inn. They eat out frequently at family restaurants
and fast-food establishments. They own all kinds of insurance including life, travel, long-term care,
and personal liability. They consult with a financial advisor about their finances. They invest time
and limited funds in home improvement projects such as painting and fencing the yard. Some enjoy
gardening and working on their own landscaping projects. Many join veterans’ clubs or fraternal
orders and do charity work through these organizations. For health reasons, these seniors control
their diet and take a variety of vitamins and dietary supplements. They will stop at nearby Circle K
or Citgo Quik Mart convenience stores for a quick purchase.
Satellite TV is part of their daily routine; they watch game shows, dramas, news programs, home
improvement shows, sitcoms, and golf tournaments. Favorite cable channels include CMT, TNT,
and Turner Classic Movies. They also read fishing and hunting magazines, rent comedies on DVD,
and occasionally listen to country radio. They also play bingo, visit theme parks, fish, and hunt.
CONSUMER ATTITUDES & BEHAVIORS
 Fashion & Apparel – Conservative, brand loyal, focused on quality and functional clothes
that last
 Home Improvement – Home owners in this area are much more likely to spend money on
home improvement products and services than the average U.S. household
 Pets – Residents are more likely to own a cat and/or dog than the national average and, on
average, are ten to twenty percent more likely to spend money on the health and welfare of
their pets – particularly if they own a dog
 Lawn & Garden – households are likely to own lawn & garden equipment and spend money
on maintaining their yard & gardens
 Sports & Fitness – Households are avid outdoor sports participants – with a much higher
propensity to participate in fishing, hunting and water related activities
 Health & Medical – in comparison to households across the U.S. – Shallotte area households
are much more likely to purchase prescription and non-prescription drugs, pain relief
medications and prescription glasses. In most categories, consumers are more likely to
purchase personal care items, diet supplements and visit a health specialist
 Sports – Households are big fans of anything related to NASCAR, college football, golf and
the Olympics
37
TRAFFIC AND ECONOMIC DRIVERS
Shallotte carries 23,000 VPD on US17 bypass and 22,000 VPD on US17 or Main Street.
There are currently two major projects underway. The first is the Mulberry Street Park and the
second is a riverfront development.
The Mulberry Street Park project will be a park, central to downtown, developed in phases with
walking trails and children’s play area. Projected opening date is Spring 2015. Development will
begin soon on an amphitheater, a memorial garden and an open area that will house events such
as the weekly farmer’s market.
Shallotte Vision Plan from 2008 lays out a master plan for downtown including a riverfront
development along the Shallotte River. The town officials believe a riverfront development will
further increase tourism and retail and restaurant options and are continue to work towards that
goal.
Area schools include:
Jessie Mae Monroe Elementary
School
Waccamaw School
Waccamaw School
Union Elementary School
Shallotte Middle School
West Brunswick High School
Ash
Ash
Ash
Shallotte
Shallotte
Shallotte
Area employers include:
Atlantic Telephone Membership
Brunswick Electric Coop - Shallotte
Food Lion LLC - Shallotte
Lowes Food Stores Inc - Shallotte
Lowes Home Centers Inc - Shallotte
Walmart Stores Inc - Shallotte
Brunswick Cove Inc
SHALLOTTE CUSTOM TRADE AREA - SEASONAL POPULATION INCREASE
SEASONAL
SEASONAL
POPULATION
POPULATION
ESTIMATED Q4 2013 ESTIMATED Q2 2013
12,468
38
15,117
SEASONAL
SEASONAL
POPULATION
POPULATION
ESTIMATED Q3 2013 ESTIMATED Q1 2013
28,261
2,386
Tourism and Seasonal Population note: Although category specific, the majority of chain concepts
are hesitant to rely heavily on tourism traffic for sales projections. They prefer to estimate sales
and success based on proximity to the local, existing population.
RETAIL OVERVIEW
The retail corridor at Main Street and Smith Avenue including Walmart Supercenter and Shallotte
Crossing is the largest retail node in Brunswick County.
The northeast quadrant of Main Street and Smith Avenue would serve as an excellent location for
a regional shopping center. Woodard Branch (Charles Branch) stream presents a challenge in
developing this property.
39
Shallotte Crossing has a GLA of 151,242, anchored by Belk, Home Depot, and Office Depot. Belk
completed an expansion in 2007. Additional tenants include Bath & Body Works, The Shoe Dept,
Dollar Tree, Petsense, Sally Beauty, GreatClips, and Chili’s. Two furniture stores, three pharmacies,
and BigLots are all located here. The center is currently being listed by Ashton Properties out of
Charlotte, NC. Shop space and a former restaurant are currently available for lease.
Office Depot could close or downsize within the next two years with room for expansion. The
potential for 40,000 – 80,000 square feet may be a possibility with a redevelopment design. Parking,
frontage and visibility will be a challenge and will determine how many square feet the redesign
can accommodate.
40
Suggestions for Home Depot / Walmart Retail Node: TJMaxx/Marshalls, Ross Dress for Less, rue21,
Hobby Lobby, Michaels, Hibbett Sports, Five Below, PetSmart, Petco, The Vitamin Shoppe, Vitamin
World, GameStop, Play & Trade Video Games
Shallotte Station at 5285 Main Street has a GLA of 27,000 sf with retail on the first floor and office
on the second floor. The center is currently listed by Coastal Properties with shop space available.
Shallotte Plaza at 4924 Main St is 22,805 sf building listed by Sloane Commercial Real Estate with
shop space available. Sloane Commercial is also listing a center with a GLA of 10,704 sf at 4764
Main St.
These centers and similar style strip centers in Shallotte are ideal for service categories of retail.
Service categories currently expanding include cell phone stores, fitness concepts, sandwich shops,
yogurt, insurance agencies, tax preparation, hair and nail salons, dry cleaners and other professional
services.
A city initiative for a Riverfront Development would be best served by local concepts and franchise
based businesses. Mast General Store or West Marine might serve as an anchor tenant, while the
remainder of the retail and restaurant mix would be best comprised of locally owned businesses.
Suggestions: Mast General Store, West Marine, Boardwalk Billy’s, Frozen Yogurt, Wags and
Whiskers, Ace Hardware, Fedex Office, Local or Regional Jewelry Store, Day Spa, Hallmark, Bella
Cucina
41
The retail node anchored by Lowe’s Home Improvement, Coastal Cinemas, and Planet Fun at US17
and Whiteville Road [NC130] has significant potential for retail and restaurant growth. Planet Fun
hosts indoor activities such as laser tag, bowling, mini-golf and arcade games. When tourists’
outdoor plans are cancelled due to weather, this node serves as an alternative. A regional shopping
center at this location would have opportunity to capture tourists and locals alike, providing
options for groups within close proximity. Nearby West Brunswick High School with over 1,300
students has the highest enrollment in the county.
Suggestions: Cracker Barrel, Buffalo Wild Wings, Chick-fil-A, The Grill, Sweet Frog, Sonic, Friendly’s
Ice Cream, Stack House, IHOP, Starbucks, Five Guys, Applebee’s, Cookout, Dunkin Donuts, Dickey’s
Barbeque, Denny’s, Mexican Lindo, Moe’s Southwest Grill, Mexican Lindo, East Coast Wings, Harbor
Freight Tools, Mattress Firm, Love’s, Sheetz
42
LEAKAGE
Gap
# of Retailers
Potential Square
General Merchandise
$15,541,084
1
25,000
Limited-Service Eating Places
$13,853,816
4
10,000
Family Clothing
$7,945,891
2
15,000
Office Supplies and Stationery
$4,533,991
1
10,000
Health and Personal Care
$4,007,834
1
10,000
Hobby, Toys and Games
$3,441,910
1
20,000
Hardware
$2,937,829
1
7,000
Jewelry
$2,880,582
1
4,000
TOTAL
$55,142,937
12
101,000
Category
Feet
Suggestions: The categories of leakage for General Merchandise will best be filled by a regional
shopping center near Walmart Supercenter or near Lowe’s Home Improvement. Limited-Service
eating places should focus on 1-2 acre parcels near Lowe’s Home Improvement. Family Clothing
should develop near Belk. Local, regional or franchise based businesses on the remaining categories
should be the focus for the new Riverfront Development.
43
11 SOUTHPORT, NC RETAIL OVERVIEW
DEMOGRAPHIC OVERVIEW
The City of Southport’s population was 2,833 as of the 2010 census. Within a 5 mile radius ring the
population is 14,808, with a median age of 58.2. This area includes Oak Island. In the identified
trade area, the current year population is 31,623. In 2000, the Census count in the area was 20,868.
The rate of change since 2010 was 3.67% annually. The five-year projection for the population in the
area is 34,484. Currently, the population is 49.6% male and 50.4% female. The median age in this
area is 52.7, compared to U.S. median age of 37.3. The household count in this area is 13,922 in
2013. The five-year projection of households is 15,286, a change of 1.89% annually from the current
year total. Average household size is currently 2.23. The number of families in the current year is
9,695 in the specified area. Current median household income is $46,534 in the area. Median
household income is projected to be $54,538 in five years. Currently, 44.9% of the 23,516 housing
units in the area are owner occupied; 14.3%, renter occupied; and 40.8% are vacant. Currently, in
the U.S., 56.5% of the housing units in the area are owner occupied; 32.1% are renter occupied; and
11.4% are vacant. The annual rate of change in housing units since 2010 is 2.53%. Median home
value in the area is $197,777, compared to a median home value of $167,749 for the U.S. In five years,
median value is projected to change by 5.04% annually to $252,887. In a 5 mile radius, median
home value in 2013 was $248,234 with 69% of the homes being owned by a person over the age of
55.
LIFESTYLES
The dominate Tapestry Lifestyle for Southport in the trade area is Rural Resort Dwellers, at 44% of
the households. Although retirement beckons, many of these residents still work. Six percent of
those who are employed work at home, twice the US rate. Because so many residents are aged 65
and older, receipt of retirement income and Social Security benefits is common. More than twofifths collect investment income; approximately 20 percent receive self-employment income.
Nearly one in four residents aged 25 years and older holds a bachelor’s or graduate degree; more
than half of the residents have attended college.
The number of households in these small, low-density neighborhoods are growing at 1.5 percent
annually. Seventy-eight percent of the houses are single-family structures; 15 percent is mobile
homes. Home ownership is at 80 percent. Of the Tapestry segments, Rural Resort Dwellers has the
highest percentage of seasonal housing, 16 times higher than the national level.
These residents live modestly and have simple tastes. They often work on home improvement and
remodeling projects and own garden equipment to maintain their yards. They cook and bake at
home. Many households own multiple pets, particularly dogs and cats. Riding lawn mowers and
satellite dishes are familiar sights in these areas, along with multiple vehicles, including a truck.
Active participants in local civic issues, residents also belong to environmental groups, church and
charitable organizations, fraternal orders, unions, and veterans’ clubs. They go hiking, boating,
canoeing, hunting, fishing, horseback riding, and golfing. They listen to country radio and watch
Animal Planet, CMT, BBC America, the National Geographic Channel, and primetime dramas on
TV. The older residents focus on their general health care, prescription medications, and financialand retirement-related matters. Many residents actively manage or plan their investments and
retirement savings. The self- employed residents are more likely to have IRAs than 401(k) plans.
44
CONSUMER SHOPPING PATTERNS
 Pets – Residents are more likely to own a dog and much more likely to spend money on the health and welfare
of their pets
 Health & Medical – in comparison to households across the U.S. – area households are more likely to purchase
non-prescription medications, prescription drugs and prescription glasses. In most categories, consumers are
more likely to purchase personal care items, diet supplements and visit a health care professional/specialist
 Sports – Households are big fans of college football, NASCAR, college basketball, the NFL, major league baseball
and the Olympics
 Sports & Fitness – households are avid about the outdoors - anything related to the water – fishing (fresh and
salt water), power boating, and kayaking/canoeing. Residents are more likely than other households across the
U.S. to focus on fitness – primarily through walking and swimming
 Home Improvement – Home owners in this area are more likely to focus on the interior of their homes instead
of the exterior and in every category more likely to purchase home improvement tools
 Lawn & Garden – households show a much higher propensity to own lawn & garden equipment and spend
money on maintaining their yard & gardens
TRAFFIC AND ECONOMIC DRIVERS
The second highest traffic count in the county is 31,000 VPD on Southport-Supply Rd SE [NC211] in
front of Lowe’s Home Improvement and Walgreens. Long Beach Rd SE [NC133] carries 23,000 VPD
feeding into NC211.
Area Schools:
Southport Elementary School – 699 students
South Brunswick Middle School – 776 students
South Brunswick High School – 1,050 students
Area Employers:
Bald Head Island Club
Food Lion LLC - Oak Island
Town of Oak Island
Archer-Daniels-Midland Company
Food Lion LLC – Southport
Dosher Memorial Hospital
Lowes Food Stores Inc – Southport
Lowes Home Centers Inc – Southport
Progress Energy Inc
Securitas SEC Svcs USA Inc
Troon Golf LLC
Walmart Stores Inc – Southport
Bald Head Island
Oak Island
Oak Island
Southport
Southport
Southport
Southport
Southport
Southport
Southport
St. James
Southport
Southport has been a popular filming location for television and movies, including film adaptations
of the works of novelist Nicholas Sparks. The town can be seen in the television series Dawson's
Creek, Under the Dome, and Matlock, and in numerous movies, including I Know What You Did
Last Summer, Summer Catch, Domestic Disturbance, Crimes of the Heart, Nights in Rodanthe, A
Walk to Remember, and Safe Haven.
Southport is the location of the North Carolina Fourth of July Festival, which attracts 40,000 to
50,000 visitors annually to enjoy its parade, fireworks, vendors from around the country, and other
festivities.
45
SOUTHPORT CUSTOM TRADE AREA - SEASONAL POPULATION INCREASE:
Seasonal Population Seasonal Population Seasonal Population Seasonal Population
Estimated Q1 2013
Estimated Q2 2013 Estimated Q3 2013 Estimated Q4 2013
1,156
7,297
13,648
6,024
Both Oak Island and Southport bring thousands of tourist annually. The Bald Head Island Ferry is
in Southport. It transports thousands of people to and from Bald Head Island. The Island is only
accessible by ferry with electric golf carts and bikes being the primary form of transportation. The
ferry runs multiple times a day. Typically high-income families rent a house for one to two weeks
during the summer for a quiet and relaxing family vacation.
46
RETAIL OVERVIEW
There are four major retail nodes in the Southport area approximately eight miles apart on the
NC211 Southport-Supply Rd corridor.
47

Lowe’s Home Improvement area

Walmart Supercenter

Downtown

The proposed Lowe’s Food anchored center at Midway and NC211
211 MIDWAY COMMONS
Currently Long Beach Rd [NC133] is the feeder road to St. James and Oak Island. Within Brunswick
County, St. James ranks among the top census tracts in housing density, income, age 55+ and retail
expenditures. The existing tenant mix at the intersection of NC211 and NC133 does not properly
cater to the consumer spending habits of the population existing in close proximity to the retail
development node. To answer this demand, site work began on a new shopping in July of 2013 with
estimated completion in 2016. 211 Midway Commons, being developed by Wakefield & Associates
based in Raleigh, will be a 90,000 - 110,000-square-foot shopping center at Midway Road and N.C.
211 at the entrance to the Swain’s Cut Bridge to Oak Island. Anchoring the new shopping center
will be a 44,000-square-foot Lowes Foods, which will have an accompanying fuel station.
Approximately nine outparcels ranging from 2,500 – 6,000 square feet are included in the master
plan. A new Holiday Inn Express opened in Summer of 2014 near the site.
Suggestions for this area would be to build a high-end tenant mix with a strong combination of local
businesses that will serve as a community center to the St. James and Oak Island residents. Categories
for the tenant mix should include pharmacy, sporting goods, hardware, home décor, coffee, yogurt,
spa, fitness, casual dining, fast casual, health & wellness, specialty foods, and family clothing.
48
LOWE’S HOME IMPROVEMENT AREA
Overall, the intersection has some of the highest traffic counts, the most tourists, and closest
proximity to the wealth and density in the county. The existing retail development does not fully
capitalize on the highest and best use of the land. Power lines to the west of Lowe’s prevent perhaps
the best property from being developed on a large scale. The new 211 Midway Commons
development will create a challenge to fully develop this intersection to its maximum potential.
Relocations of existing retail will also prove to be a challenge. Given the current retail landscape,
it is best to continue to focus on value, convenience, and service oriented retail.
Several build to suit opportunities ideal for quick service restaurants, casual dining, convenience
stores, and hotels. Should relocations cause vacancies, backfilling existing space could be fitness,
churches, medical uses, veterinarian, vacation rentals and events, and other service oriented uses.
WALMART SUPERCENTER AREA
Tidewater Plaza, listed by Rivercrest Realty Investors, is the dominate shopping center in this retail
node, anchored by Walmart Supercenter. Currently, the vacancy rates here are considerably low;
however, there is ample property available for development along Southport- Supply Road [NC211].
49
50
The listed properties are a long term strategy for Southport to prepare for the build to suit
opportunities for retail along the NC 211 corridor. The development of Midway Commons will
determine the future development of retail between Walmart Supercenter and downtown. Traffic
patterns will change as a result of the new development. Currently, traffic is nearly 10,000 VPD
higher south of NC 133, traveling to and from Downtown Southport, than north of NC 133.
DOWNTOWN SOUTHPORT
Downtown Southport is quaint and vibrant with more than 30 retail shops ranging from antiques
and gifts to art and jewelry. The recommended retail mix for downtown is to maintain the local
and unique character.
Suggestions for downtown would entail a strong partnership with SBA to foster successful small
businesses. In addition, there is a heavy focus on the arts and culture of coastal Carolina. Finally, a
focused effort is in effect to market Downtown Southport through social media.
LEAKAGE:
Gap
# of
Retailers
Potential Square
Feet
$20,313,978
2
30,000
$11,201,111
4
10,000
Hardware Stores
$10,691,808
1
10,000
Family Clothing Stores
$5,442,845
1
20,000
Specialty Food Stores
$4,315,094
1
18,000
Office Supplies and Stationery Stores
$3,266,319
1
10,000
Sporting Goods Stores
$3,197,323
1
8,000
Cosmetics, Beauty Supplies, Perfume
Stores
$2,828,341
1
5,000
Jewelry Stores
$2,481,769
1
4,000
Health and Personal Care Stores
$2,260,330
1
10,000
$65,998,918
14
125,000
Category
General Merchandise Stores
Limited-Service Eating Places
TOTAL
It is recommended that downtown focus on potential businesses for entrepreneurs to open with an
emphasis on jewelry, specialty goods, stationary, beauty supplies and family clothing. 211 Midway
Commons should capitalize on the leakage in general merchandise, hardware, eating places,
specialty food stores, sporting goods, cosmetics and health stores. The Lowe’s Home Improvement
retail node should focus on limited-service eating places and general merchandise.
51
12 REGIONAL SHOPPING CENTER OPTIONS
REGIONAL SHOPPING CENTER POTENTIAL
If Brunswick County could support a regional shopping center that would locate in Supply or
Shallotte, they would pull from a much larger regional trade area. The identified combined trade
area extends from the southern border of Brunswick County and along the coast line to the east to
Winnabow. The 2013 population for the trade area is 81,826. The five-year projection for the
population in the area is 89,436 representing a change of 1.79% annually from 2013 to 2018. Currently,
the population is 49.1% male and 50.9% female. The median age in this area is 52.4, compared to
U.S. median age of 37.3. The household count in this area has changed from 34,239 in 2010 to 36,350
in the current year, a change of 1.86% annually. The five-year projection of households is 39,980, a
change of 1.92% annually from the current year total. Average household size is currently 2.23. The
number of families in the current year is 24,987 in the specified area. Current median household
income is $43,021 in the area. Median household income is projected to be $51,341 in five years,
compared to $56,895 for all U.S. households. Currently, 41.8% of the 66,453 housing units in the
area are owner occupied; 12.9%, renter occupied; and 45.3% are vacant. High vacancy rates are a
result of vacation homes. Currently, in the U.S., 56.5% of the housing units in the area are owner
occupied; 32.1% are renter occupied; and 11.4% are vacant. The annual rate of change in housing
units since 2010 is 2.48%. Median home value in the area is $180,158. In five years, median value is
projected to change by 5.46% annually to $234,986.
Typically, retailers like to cluster together in order to capitalize on cross-shopping. This suggests a
regional shopping center should be built in Shallotte or Leland. A shopping center in Leland would
not stop the retail leakage in the southern portion of the county. Also, it does not offer enough
separation from Wilmington to support a new large regional shopping center development. Lowe’s
Food in Leland is only 12 miles from Target in Wilmington.
Supply and Shallotte allow for the best highway network and separation from Wilmington and
Myrtle Beach to support a regional shopping center. If a shopping center were developed in Supply
or Shallotte to capture the regional trade area and tourists, the gross leasable area (GLA) would
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need to be in excess of 150,000 square feet. The critical mass would make the shopping center a
destination and overcome the lack of density in population. The retailers would need to be new to
market concepts that would be more convenient in drive time and convenience than the retail
shopping hubs in surrounding areas.
Brunswick County does not have dominate national brand sporting goods, pet stores or hobby
stores. These are categories that appeal to retirees as well as tourists. Having only Belk in Leland
and one Peebles in Southport, leaves a gap in the soft goods category. Belk completed an expansion
in 2007.
An entertainment component would help secure the long term success of the project. The center
should have the option to incorporate indoor activities for locals and tourists as an alternative to
weather preventing outdoor activity. Coastal Cinemas in Shallotte is a ten screen theater, and
Planet Fun offers a variety of indoor activities. It would be better for the region if Coastal Cinemas
were renovated than for a new theater to open in Supply. Additionally, an urgent care concept
should be considered for the convenience of the transient population, and for the convenience of
the older population.
The challenge with Shallotte is that traffic is divided by Main Street and US 17. US 17 carries more
traffic, bypassing the Belk and Walmart Supercenter retail node. Lowe’s Home Improvement,
Coastal Cinema and Planet Fun are located on the southeast quadrant of US 17 and NC 130
Whiteville Road. If land were developable with easy access and good visibility, this would be the
best location in Brunswick County for a regional shopping center.
The second best location would be in Shallotte at the northeast quadrant of Main Street and Smith
Avenue. The existing retail mix in close proximity to the site would capitalize on the critical mass.
The third best location would be in Supply at the southeast quadrant of NC17 and NC 211. The
highway network and traffic counts are strong in this area. The lack of development will be a
hindrance for retailers to approve the site. The risk for a profitable store is high in areas where
there is not proof other stores are profitable.
Factors such as land cost, site work expense, approvals and a variety of other items may drive up
the cost of the development to a point that the project is not profitable. Public/private partnership
can help bring down the development costs to keep rents affordable for tenants.
If there are not enough anchor tenants interested in a new shopping center development containing
more than 150,000 GLA, then the focus should be on filling existing vacant space in the county, or
on developing a smaller center near 211 Midway Commons in Oak Island.
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13 RECOMMENDATIONS
CUSTOMIZED TOURISM STUDY
A specialized tourism study would add great value to the overall analysis and better determine the
true identity of Brunswick County. While it is known that tourism accounts for a large portion of
the population, it is imperative to gain an understanding of their spending habits and their
disposable income. Having this information will help Brunswick County to relay this information
to retailers, brokers, and developers who are looking to open new stores in the community. Each
retailer has specific criteria that they look for in their site selection process, and lacking a full
understanding of your population hinders your ability to effectively recruit new retailers. This data
needs to be collected from a source that specializes in focused studies in order to provide the
highest level of accuracy.
SPECIALIZED TRAFFIC STUDY
We recommend that the Economic Development Commission hire an engineering firm with
expertise in conducting traffic surveys and the analysis of traffic data. Since NCDOT calculates
traffic counts during the off-season, the tourists are not accounted for, causing the numbers to be
inaccurate. Furthermore, NCDOT did not provide traffic counts for Leland, causing the current
analysis to be skewed. Traffic patterns between Shallotte and Supply, Southport and Supply, and
from the coastal areas associated with the retail trade areas of Shallotte and Southport will shed
additional light on the regional draw of consumers and tourists. A study of traffic flow patterns
into and out of the unincorporated area of Supply will provide complementary research to the
possibility of a regional power center. It will determine the likelihood that such a development can
successfully draw consumers from both Shallotte and Southport.
A traffic survey and analysis of traffic flow patterns into and out of the Leland area will determine
the likelihood that consumers from Wilmington are 1) shopping in Leland for goods and services,
2) show a willingness to travel into the Leland retail trade area for unique or destination retailers,
and 3) identify Leland residents traveling to Wilmington during morning and evening commutes
and on weekends.
EXISTING RETAILER OUTREACH
We recommend that customized research be made available to all current retail and restaurant
businesses operating throughout Brunswick County. In addition to identifying missing retail
concepts within a market, a GAP analysis is also helps to identify a lack of product and service
offerings. Businesses within each category may identify additional products, services or even new
franchise opportunities from the retail GAPs and Consumer Behavior and Attitudes data.
We have also found in many communities that local businesses are not always aware of the market
or trade area for their goods and services, and as a result have limited their marketing efforts.
Access to basic demographic data like population, households, population by age, population by
male/female by age, and income levels may provide businesses with a better understanding of their
customer base. This then allows them the opportunity to expand their business through better
branding, additional product offerings, and more targeted marketing.
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RETAIL RECRUITMENT
In today’s retail environment, retailers have choices. Retailers and restaurant chains with
aggressive expansion plans have many more potential locations than planned new stores. We
believe it is important that communities have a pro-active retail recruitment plan in place and the
infrastructure to implement the plan.
The “infrastructure” includes, but is not limited to:
 Research that goes significantly beyond demographics and maps
 Staff or an outside consultant focused entirely on Retail Recruitment
 Retail Property Database
 Marketing and Retail Conference Attendance
Research requires differentiating the opportunities for retail expansion in your communities from
your competition. Understanding a retailer’s parameters for selecting a site, pro-actively providing
detailed consumer data at the household level, knowing that a retailer has shown a propensity to
locate in peer communities, the ability to benchmark a retailer’s existing store locations versus
potential sites – provides you the ability to market your community, through fact based analysis, as
an appropriate location for a retailer’s new store or restaurant.
A pro-active Retail Recruitment initiative is critical. Again, retailers have choices and those
economic development organizations that have hired either an in-house staff person or an outside
retail recruitment consultant are more likely to see measureable results from pro-active marketing
and outreach to retailers and restaurant concepts.
We would encourage the Economic Development Commission to analyze the cost of an in-house
retail recruiter versus an outside consulting firm. Salary, travel, conference fees are just some of
the expenses associated with hiring someone internally. In the event the decision is made to hire
a staff member, that person should have retail real estate experience. The ability to communicate
with commercial real estate brokers, developers, tenant reps, site selectors is crucial to building and
cultivating relationships with targeted prospects. Understanding project analysis, incentives, deal
structure, economic impact, etc. create a level of comfort with those involved in making a retail
project come to fruition.
A retail consultant provides a more cost effective solution. The EDC gains the benefit of having a
“team” focused on pro-actively recruiting retail to all communities, representation at dozens of
retail conferences, relationships with commercial realtors, tenant reps and, more importantly,
developers throughout the region and access to resources to facilitate the site selection process. In
the event the EDC determines a consultant best fits the long-term direction of its retail focus, we
would recommend that the consultant’s team include licensed real estate professionals.
The retail recruiter or consulting firm should also be focused on Broker/Developer outreach
through timely, consistent communication and marketing.
ONLINE PROPERTY DATABASE
An On-line Retail Property Database provides retailers, commercial real estate professionals, site
consultants and local entrepreneurs access to available retail properties and land available for retail
development.
At minimum, the following information should be included for each property:
Location [Address or Intersection, City]
Size [GLA or Acres]
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Type of Property [Land or Existing Center]
Point of Contact [Name, Company, Email, Phone]
MARKETING MATERIALS
The most effective way to market retail opportunities will be through analyzing the key highlights
of the data and customized maps. Aerial maps providing the locations of the existing national retail
businesses is critical. Traffic counts will show traveling patterns in relation to the highways and
existing retail nodes. Daytime population can be reflected through plotting the major employers
and schools within the county.
At minimum, the following information should be included:
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Demographics [Population, Median Household Income, Project Growth]
Aerial Map [Existing Retail and Traffic Counts]
Economic Drivers [Schools, Hospitals, Major Employers]
Local Story [Growth Rate, New Development, Tourism]
UTILIZE RETAIL LEASE TRAC
The Brunswick County Economic Development Commission has a subscription to Retail Lease Trac.
This is a tool that should continue to be utilized to easily identify which retailers are expanding in
your state/region, what their market and site criteria is, and the appropriate point of contact,
including their phone number and/or email address. This will increase your knowledge base on the
retail industry, as well as escalate your efficiencies in your retail development efforts.
INVOLVEMENT IN INTERNATIONAL COUNCIL OF SHOPPING CENTERS (ICSC)
The International Council of Shopping Centers (ICSC) is the largest retail commercial real estate
trade organization in the world. The organization provides research, advocacy, education and
networking opportunities. Active involvement in the organization is recommended as a tool to
further seize the Brunswick County opportunities the marketplace currently presents.
The ICSC Membership has over 66,000 members. Annual membership fee for the Public Sector is
a discounted rate of $100. Jim Bradshaw of Brunswick County Economic Development Commission
is currently a member actively involved.
Although ICSC has numerous events and options to network, the three most beneficial to
Brunswick County would be as follows:
 Southeastern Conference – October 2014 – Atlanta GA
 Carolinas Idea Exchange – March 2015 – Charlotte NC
 RECON – May 2015 – Las Vegas NV
FRANCHISE FOCUS: FIND OPERATORS/ OWNERS
There are approximately 750,000 franchise establishments in the United States with over 2,000 in
the 7th Congressional District of North Carolina. The data shows franchise business opportunities
are a safer bet for long-term success than startups or existing business purchases. With thousands
of concepts in multiple categories, narrowing down the franchise that is right for an entrepreneur
takes a great deal of due diligence. A potential business owner may be discouraged and confused
by the process and not pursue the opportunity.
Dozens of franchise based businesses could open in Brunswick County should the proper owner
and/or operator be identified. A sampling of online resources includes:
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www.franchise.org
www.franchise.com
www.franchising.org
www.franchiseopportunities.com
www.franchiseamerica.com
www.franchiseconnections.com
www.ownyourownfranchise.com
www.topfranchises.com
www.franchisedoc.com
www.franchiseregistry.com
startup.wsj.com
www.bison.com
It is recommended that Brunswick County host a Franchise Workshop (led by firms such as FranNet
or FranChoice). This would be an educational session using franchise consultants. The attendance
at such a workshop should include the regional population interested in owning and/or operating
a franchise in Brunswick County. Prime candidates for a successful franchise owner are Veterans
and Retirees. The workshop could include personal assessments for potential owners to match
them with the franchise concept that will best match their personal and financial goals for long
term success. There is a variety of financing options to purchase a franchise that should be covered
in the Franchise Workshop.
The Economic Impact of Franchised Businesses report, conducted by Price Waterhouse Coopers,
estimates the amount of economic activity generated both within and because of franchised
businesses.
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USE OF BASECAMP
Basecamp is a web-based project management platform that will be provided to the County as an
easy way to access the research in one place. The County’s account will be password protected and
the main point(s) of contact can identify which individuals should have access to this account.
Once logged in, all of the reports and analysis provided by Retail Strategies will be accessible at
your fingertips. This platform provides a quick and easy way to communicate. You have the ability
to post individual messages, as well as comments on the files. Additionally, you can create and
assign tasks under the “To-Do” tab, which enables your team to delegate and stay organized.
Basecamp can be accessed through your PC or laptop through their website, or you can download
their app and access it through your iPad, iPhone, or Android. Basecamp also integrates with email.
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PUBLIC/PRIVATE PARTNERSHIPS
It would be highly beneficial for the county to be well informed on how developers operate, as
well as ways to form a public/private partnership that benefit both the developer and the county.
Traditional economic development will tell you that people follow jobs, and retail follows people.
Therefore, most municipal economic development efforts allocate resources to, and focus
primarily on, recruiting high-paying jobs while allowing self-supporting retail growth. Struggling
to find new jobs and offset decreasing budgets during the Great Recession, municipalities shifted
their focus to retail growth. Retail brings to a community new jobs, increased tax revenues and,
most important, quality of place; the latter is a critical component of civic satisfaction.
Retailers are hungry for new space. More than 40,000 additional stores have been announced, but
where will they locate? Vacancy rates are at a six-year low in class-A retail nodes. So will the
expansion spill over to class-B and -C locations, or will new construction answer the demand? The
square footage of shopping center space added from 2005 to 2008 was 84.1 million square feet,
versus recession numbers of 20.3 million square feet from 2009 to 2012, according to Cassidy
Turley Research/CoStar. The pent-up demand for new construction is being answered by only a
conservative increase in new centers.
Developers are forced to be creative. The rising cost of land and construction financing would
suggest higher rents as the answer for new development to meet the required margins. However,
in today’s environment, retailers are unlikely to pay such rents. In several cases, this squeeze is
being answered by public-sector participation. An additional 758 centers, totaling 120.5 million
square feet a year, will be added to the U.S. inventory over the next three years, with more than
two-thirds expected to be completed this year alone, according to published sources.
Progressive municipalities that understand the positive economic impact of new retail development
are partnering with developers to offer incentives to offset costs and drive rents down. When
structured correctly, this can be a winning situation for all participating parties. The way incentives
can be structured for a retail project will vary by state. To see a guide for state-by-state incentives,
please refer to the following recently published article: http://businessfacilities.com/state-by-stateincentives-guide/.
Retail Strategies recommends Brunswick County draft an “Open for Business” policy. The policy
establish the goals of a public/private partnership and invite the private sector to ask what tools are
available from the public sector to create a partnership. The policy should not provide specific
promises, as each project should be assessed individually for the economic impact it may have on
Brunswick County.
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14 CONCLUSION
Brunswick County is underserved in certain retail categories; therefore, it can support additional
retail stores and restaurants. The tourist and retiree population challenge the retail sales estimate
projections conducted by the retailers. The retail real estate industry is on the upswing, as many
retailers are announcing expansion plans. With the proper contacts and research Brunswick
County should aggressively market their opportunities in order to remain competitive in the retail
arena. Brunswick County should market the four intersections addressed in this report to local
and regional developers to make them aware of these potential regional shopping center
development locations.
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15 SOURCES
Software Applications:
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Research360/Tactician
STDB/ESRI
SiteReports/Claritas
REGIS
Demographic Data Providers and Online Resources
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Applied Geographic Solutions
ESRI
Claritas
PopStats (Synergos)
Census
Bureau of Labor Statistics
Bureau of Economic Analysis
Dun &Bradstreet Business Location Data
Tapestry Segmentation
MRI Consumer Behavior & Attitudes
Brunswick County Planning Department
The 2013 Economic Impact of Travel on North Carolina Counties
National Center for Education Statistics
Wikipedia
All information provided in this Study is for informational purposes only. The information
obtained is from sources deemed reliable, but no guarantee is made that the data is complete or
entirely accurate. Any party using this information does so at its own risk. No guarantee for success
is being made by this data. Decisions made on real estate matters are at the risk of the developer
and shall not be attributed to the data or evaluation contained in this report.
For additional information – please contact:
Jim Bradshaw
Brunswick County Economic Development Commission
Executive Director
Phone: 910-253-4429
E-mail: jbradshaw@brunswickedc.com
Mailing Address: P.O. Box 158
Bolivia, NC 28422
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Jim Bradshaw
jbradshaw@brunswickedc.com
910-253-4429
Lacy Beasley
lacy@retailstrategies.com
205-490-2829
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