The Role of Retail in Downtown Redevelopment  
 

 

If your city is pursuing a downtown redevelopment project - and who isn't these days - carefully consider the role of retail in the success of the venture.

The reality is that retail enhancement is just one part of a successful redevelopment effort; it can't carry the burden alone and yet it does have an important place in your plans. Your redevelopment effort should be multi-functional to include shopping, eating, employment, tourism, entertainment, arts, government, religion and housing.

Redevelopment strategies may require you to redefine "retail" for downtown. If you're old enough, you may remember shopping in large downtown department stores. Up until the 1950s, and sometimes later, most mid-size and larger cities had one or more of these large multipurpose retailers. Their decline began in the middle of the last century when the great suburban land rush moved people farther away from the downtown center. Suburban shopping malls popped up to fill the needs of these consumers, leaving downtown department stores struggling. Today, most downtowns cannot support large department stores: the customer base is too small and parking facilities are insufficient...

The new model for downtown retail looks like that of 100 years ago when downtowns were dotted with small, specialty retailers and service businesses. Back then, most downtowns had a general store or two and perhaps a feed store, a saloon and a cafe. A market-driven approach was the key then, and it should be now. To translate this "old-time" concept into today's terms, you need to determine your downtown's current and potential consumers...

Your analysis should identify the lifestyles and buying habits of the people in the downtown area and beyond. Remember that a downtown redevelopment is different from redevelopment elsewhere in a city, because a downtown "belongs" to all the residents of the city. That means that downtown can be considered a destination in a way that other areas of the city are not.

Downtown retail expansion projects must be considered from the viewpoint of the retailer or developer:

1. Economic viability: You must be able to show prospective retailers and restaurateurs that your downtown is economically viable. You do this by demonstrating that you have the type of consumers targeted by specific businesses.
2. Customer density: Even if the population has declined, the key is to be able to show the retailer you have adequate density of "their" core customers.
3. Parking: Non-congested accessibility to downtown and adequate parking are critical.
4. Retail site selection policies: Many national and regional retailers operate on a suburban paradigm for finding new sites. Communicate closely with them to overcome any hesitation about locating downtown.
5. Construction costs: Renovation of existing buildings can be more costly, so provide incentives. Be careful that historical preservation doesn't make construction as well as maintenance prohibitively expensive.
6. Appearance: Retailers will leave existing locations just to have newer, up-to-date facilities, so a face makeover should be part of your overall plan. At the same time, be careful to preserve your downtown's unique physical identity.

In the past decade, we've seen an amazing renaissance in downtown development. Successful cities have nurtured a strong private/public partnership to get the process going and to sustain it over time. The private sector and investors will ultimately drive the downtown turnaround; they provide the right environment to bring in retailers. The public sector is well-positioned to tackle infrastructure issues as well as to bring in the other activities and services that invigorate a downtown area.

A strong retail base makes it easier to attract other businesses and to meet the goal of having a well-rounded downtown.

 

 

©Copyright 2004, Buxton.
   
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