Attracting Retailers and SME’s to regions

Greg Davis taktics4.com.au

Retail Drives Behaviour

1. Isolation from family and friends

2. Reduced access to retail facilities and services

3. Reduced education for kids

Retail Drives Behaviour

Attract skilled

labourforce

Shops/Cafes

Services

I want more

I need more

Retain existing

community

Youth employment

Second incomes

Part time

employment

Heart

Sense of place

Vitality

Vibrancy

Confidence

Economic prosperity

Retail Spending

Regional residents

spend less on retail

Less need?

Less deserving?

Less income?

Less opportunity?

Less Impulse (60%)

Food and non-alcoholic beverages -17%

Tobacco products 7%

Clothing and footwear -30%

Household furnishings and equipment 3%

Household services and operation -10%

Medicines, pharmaceutical 35%

Recreational and educational equipment -15%

Animal expenses 19%

Personal care -20%

Miscellaneous goods and services -25%

TOTAL RETAIL EXPENDITURE -15%Household expenditure (ABS 2009/10) Retail Sales (ABS)

Difference in retail spending – Region v Urban

Retail and Income

Highest incomes earn 7

times more than lowest

incomes

Lowest incomes

40% smaller

2.6 to 1.6 people

Number of mouths

Household expenditure (ABS 2009/10)

Difference in retail spending – lowest to highest incomes

Retail Employment

Retail dominates regional

employment

Less employees/hhld

Less second and third jobs

Less disposable income

20% fewer retailers per

capita in regions

Less efficient employment

Difference in job reliance - Urban v Region

Census (ABS 2006)

Retail Targets

Majors

• Supermarkets

• Discount Department Stores

Brands

Chains

Franchises

Selling Out?

1 M customers p.a.

20,000 p.w.

3,000 p.d.

60% impulse

Supermarkets

70% of all food/grocery spending

Coles 740

Woolworths 820

Total 1,560

Adding 20 stores p.a.

Average Sales $30M p.a.

Supermarkets

90% urban population live

within 1.5km

1 store for every 13,000

people

23,000 people in typical

1.5km urban catchment

Not counting ‘top up’

stores

Supermarkets

90% urban population live

within 1.5km

1 store for every 13,000

23,000 people in typical

1.5km urban catchment

Not counting ‘top up’

stores

Department Stores

Big W 160

Kmart 170

Target 290

Country 120

Target 170

All 620

Average Sales $25M p.a.

Adding 20 stores p.a.

Department Stores

90% urban population live within

3.5km

1 store for every 33,000 people

3 stores in same catchment

100,000 people in typical 3.5km

urban catchment

Brands/Franchises/Chains

1,200 opportunities

Guaranteed Success

Leaders/Support

Will follow majors

Exploit

A Major’s Reasons for Smaller Regions

Growth Targets

Urban Saturation

Try New formats

Complete a supply chain

Blocking competitors

Protect sister businesses

A Major’s Reasons for Regions

Not palms trees in roundabouts

Three Part Attraction Plan

Political

Opportunity

Spatial

In parallel

Political

Agree on a vision

Community desire

Willingness to make it happen

Robust plan

Economical development

One crack!

Opportunity

Market Analysis

Population

Spending

Market share

Competition

Current offer

Retail Opportunities

Engage majors/not developers

Play one against another

Spatial Plan

Land Compilation

Right site for right uses

Flexibility/Plan B

Adjacent does not mean integrated

Car parking/infrastructure

Understand movement patterns

Design with majors

Staging and Timing

Summary

Regions are generally under shopped

Retail underpins attraction and retention of communities

Major retailers drive retail behaviour

Need a three part plan

Shared political and community vision

Economic driven not planning driven

Work the plan

No palm trees

Attracting Retailers and SME’s to regions

Greg Davis taktics4.com.au