Success is insight. Copyright© 2011 Buxton Company. All Rights Reserved.

Business Retention and Local Business Development Best

Practices

Lisa Hill, Buxton

Success is insight.

Speakers

Brad Dunlap

Community Development DirectorCity of Porterville

Lisa Hill

Vice PresidentBuxton

Success is insight.

Who We Are

• National leader in customer analytics• 500 years of retail management and site selection

experience• 1,900+ clients including 600 community clients• 35 million sq. feet of retail expansion by our

community clients• Daily interface with senior retail real estate

executives

Success is insight.

Our Clients• Retail Clients – 2,000+

• Community Clients – 650+

• Healthcare Clients – 150+

Success is insight.

Overall

• Coming off of a fairly successful holiday season, retailers will need to remember to continue to compete they need to keep merchandising exciting and strategically use marketing dollars

• International Council of Shopping Centers predicts same-store sales to be up 3 to 3.5% in 2011

• Job market struggles– Avg. weekly worker earnings fell .4% in Dec

2010• Of 318 retailers surveyed, 41% said they intend to

increase domestic store expansions (up from 25% in 2010)

Success is insight.

Smaller Retail Footprint

• Target introducing new concept – half the size of its current stores today

• Old Navy seeking 15,000 sq ft. sites – down 10,000 sq ft.

• Walmart opening stores 188,00 sq ft. vs 220,000 sq ft.

• Lowe’s introduced its smaller footprint (117,000 sq ft.) in 2010. Allows for:– Capitalization on untapped urban markets– Emersion into smaller, secondary markets that

had previously been overlooked

Success is insight.

Grocery Segment

• Eradication Food Deserts– Typically an urban and/or low-income area with

little access to fresh or affordable groceries. Fast food predominant in these areas.

– What can your community do?

Success is insight.

Grocery Segment

• Smaller footprint for entry into urban/rural markets– Walmart Neighborhood Market– Kroger Marketplace– Safeway’s Market– Supervalue’s Urban Fresh– Save-A-Lot– Aldi– Sunflower Farmer’s Market

Success is insight.

Luxury Segment

• Affluent shoppers have recovered far more quickly than middle and lower income consumers

• Luxury sales continue to improve– Saks same-store sales rose 11.8% in December

2010– Tiffany & Co and Jared’s both experienced double-

digit percentage gains and raised profit outlook for 2011

• Affordable luxury companies also benefitting from upper-middle class– Polo Ralph Lauren shares hit an all-time high in

December– Coach opening additional outlet locations due to

demand

Success is insight.

Franchise Industry Poised For Growth

• The International Franchise Association (IFA) expects – Total # of franchises to grow from 765,723 to

784,802—an increase of 19,079 new establishments in 2011.

– Create 194,000 new jobs– Largest segments of growth include:

• Lodging• Automotive• Retail Products and Services

• Encourage franchising among the entrepreneurs in your community

Success is insight.

Business Retention-Private Sector Practices• Become a pro active partner to local business

owners• Understanding leakage/surplus to help local

businesses understand sales gap and market potential

• Understand customers in market trade area for sustainable growth and strategic merchandise decisions• How do my customers like to be messaged?• What are the brand loyalties in my market

trade area?• What potential market share can be gained?

Success is insight. Copyright© 2011 Buxton Company. All Rights Reserved.

Case Study:Porterville, California

Success is insight.

Success is insight.

Success is insight.

Primary Trade Area Population: 66,628Total Households: 19,207Average Household Income: $49,412

Secondary Area Population: 109,807Total Households: 31,002Average Household Income: $51,780

Unemployment: 16.3%

Demographics

Success is insight.

Success is insight.

Success is insight.

• Downtown– Historic– South County Justice Center

• Henderson Avenue– Established Retail Trade Area

• Jaye Street & Highway 190– New Commercial Development

Retail Centers

Success is insight.

• Chamber Economic Development Committee• Sierra View District Hospital• Porterville Civic Development Foundation• Buxton

Partnerships

Success is insight.

• Community Development Block Grant Loan Programs– Small Business Revolving Loan– Large Scale Assistance

• Permit Streamlining• Fee Payment Plans• Fee Deferral• Enterprise Zone• Redevelopment Area• Website• ICSC Events

Tools

Success is insight.

Success Stories

Success is insight.

• Gateway to:– Trail of 100 Giants– Success Lake– Eagle Mountain Casino

• Visitors Center• Fairplex • Sports Complex • Eating Establishments• Hotels

Leveraging Tourism

Success is insight.

Questions?

Success is insight.

Questions?

• Contact Brad Dunlap bdunlap@ci.porterville.ca.us

• Contact Lisa Hilllhill@buxtonco.com