retail webinar
DESCRIPTION
News educationTRANSCRIPT
1© Copyright Buxton, 2009 – Private & Confidential – Not for redistribution without prior approval.
Kim Pendergraft
Affiliate Services Coordinator
Texas Municipal League
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Bill Shelton
Partner
CommunityID, Buxton
Amy Wetzel
Senior Vice President
CommunityID, Buxton
Bryan Spain
President
Buxton Development
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• Retail Development in a Changing Economy• Community and the Development Partner• Round-Table Discussion with Developer Bryan
Spain
Today’s Agenda
4© Copyright Buxton, 2009 – Private & Confidential – Not for redistribution without prior approval.
Retail Developmentin a Changing Economy
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Starbucks To Close 600 Stores
What Makes Headlines
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What Didn’t Make Headlines
Planned Store OpeningsWalgreen’s - 495JCPenney - 36William-Sonoma - 51Lowe’s - 75Whole Food - 34Tractor Supply - 70
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Challenges and Opportunities
Outlets and Factory Centers35 new ones by January 201118 expanding in 2009-2010
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Challenges and Opportunities
Downsizing: Mid-and Smaller SizesCheesecake Factory - 2,000 sq. ft.Wal-Mart’s Neighborhood Markets - 40,000 sq. ft.Home Depot - 28,000+ sq. ft.Walgreens - 5,000 sq. ft.Office Max - 2,000 sq. ft.
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Challenges and Opportunities
Discount Retailers ScoringDollar General - up 10.1%McDonald’s - same store sales up 7.1%Family Dollar - up 6.4%Sam’s Club - up 6.2% (excludes gasoline)
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Challenges and Opportunities
Luxury Stores Find OutletsSaks Off 5th - 4 storesNeiman Marcus Last Call - 3 storesNordstrom Rack - 10 stores
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Challenges and Opportunities
Off-Mall LocationsJCPenney - Smaller stores off-mallsKirkland - 15-20 new stores off-mallsSears - Retooling to outside of mallsSears - Converting Kmart into MyGofer; a drive-
thru warehouse
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Challenges and Opportunities
U.S. Retail Market AttractiveIkea - SwedenTesco Fresh & Easy - BritainH&M - Sweden
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Challenges and Opportunities
Challenge: Keeping PerspectivePent-Up Shopping DemandAuto Dealerships - Reuse OpportunitiesSmaller Concepts - New Markets
14© Copyright Buxton, 2009 – Private & Confidential – Not for redistribution without prior approval.
Community and theDevelopment Partner
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Community Retail Challenges
• Growth/development/progress/image• Lacks customer base• Risky investment (real or perceived)• Competition outside trade area• No dedicated champion
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The Retail Challenge for Communities
Lack of retail understanding and muscle
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Attracting the Developer Partner:Build a Compelling Story
• Validate the market potential (unmet need)• Align incentives and financing to share risks• Streamline regulatory processes• Assemble sites with retail potential
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First CutCustomersVisibleAccess Second Cut Size, Shape Infrastructure
Competition Third Cut Zoning Ownership Impact
Sites With Retail Potential
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Understanding the Developer Partner
A developer must take extraordinaryrisks to develop in unproven markets.
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The Community’s Role
Extraordinary efforts are required tolessen developer’s risks.
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• Lack of customer density• Low income/spending levels• Unproven or stagnant markets• Lack of comparable existing businesses
Overcoming Risks
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Build Community Commitment• Avid and vigorous commitment• Developers want predictability• Good planning attracts development
Extraordinary Efforts
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• Leadership’s long-term commitment• Continuity of programs and policies• Speed-to-market• Manage development like well-run shopping malls• Cooperative marketing efforts
Sustainable Community Efforts
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• Incorporate city’s vision into development• Site planning in context of community• Marketing & leasing• Developing the property
The Developer Partner’s Role
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Selecting the Developer Partner
• Create and send RFP• Perform due diligence• Select the developer
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Texas Municipal League Annual Conference
Positioning Your Community for Retail:Maximizing Retail Opportunities
Tuesday, October 22, 20099:00 – 10:15Fort Worth, Texas
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Texas Municipal League~ Educational Calendar of Events ~
June 29, 2009 Texas Municipal League Legislative Wrap-Up Austin
July 17, 2009 Texas Municipal League Small Cities’ Problem-SolvingClinic
Alpine
July 24-25, 2009 TML-AMCC Newly Elected City Officials' Orientation Austin
August 7-8, 2009 TML-AMCC Newly Elected City Officials' Orientation Austin
August 14, 2009 Texas Municipal League Small Cities’ Problem-SolvingClinic
Canyon
September 3-4, 2009 Texas Municipal Human Resources Association:Employment Law Seminar
Galveston
September 11, 2009 Texas Municipal League Small Cities’ Problem-SolvingClinic
Tye
October 21-23, 2009 Texas Municipal League Annual Conference andExhibition
Fort Worth
