7.0. HRSR 06-28-1999 - Laserfiche WebLink

Home Browse Search

• { INTRODUCTION In the past several decades,America's Main Street's have gone through a staggering economic transition.Once the community's primary(if not only)source of retail goods and services,many traditional downtown commercial districts found themselves facing intense competition from shopping malls—competition not only for customers,but for businesses themselves. Lured by the promises of ample customer parking, unified facades and a steady stream of shoppers attracted to the mall's anchor stores,some downtown merchants left the traditional business district for the new development. The vacant spaces they left behind were joined by new vacancies as other downtown businesses,unable to adapt to sudden changes in the local market, closed their doors for good. • Without tenants,downtown's buildings fell into disrepair and,consequently,the downtown's image with customers suffered. Property owners need tenants--arid regular rental income—to maintain and,hopefully,rehabilitate their buildings. But too often,well-meaning downtown leaders,anxious to simply fill vacancies,grabbed any business in sight,giving little thought to what the business could contribute to the downtown's retail mix or whether its probable sales volume could generate the rent levels necessary to support the building's maintenance and, if needed,its rehabilitation. • Today,most Main Streets have many opportunities to bring customers back downtown. But, the process is a complicated one. Because of the market erosion downtown and neighborhood commercial districts have suffered over the years, the revitalization group must carefully examine the district's market possibilities and build an economic development strategy based• on the most promising options. Consumers' expectations have changed,too. Accustomed to the high-quality promotion and inviting merchandise shopping malls offer,customers expect similar benefits downtown. To be competitive, the revitalization organization must make shopping on Main Street a unique,enjoyable experience. Understanding the basics of retail market analysis can help guide the revitalization program in making educated decisions about the types of businesses the commercial district might be able to support,the customers it can probably attract,the ways it should promote the district's assets, and the pace at which the district's economy might change. A retail market analysis is not a detailed blueprint for action. In fact,retail market analysis isn't an"exact"science at all. For example,there are no ten numbers that can be crunched that will show with any certainty what kind of businesses will succeed in your community. Even if research showed that there were no similar stores within 500 miles,a store could still fail if it didn't have what local customers wanted.The interpretation of market data takes knowledge of local market trends, customer preferences, local experience, and common sense. Market analysis is simply a tool for making the best possible educated guesses about an area's potential STEP BY STEP MARKET ANALYSIS-I