august 2007 city of richmond / wayne county, in communityid final report

August 2007August 2007

City of Richmond / Wayne County, INCity of Richmond / Wayne County, IN

CommunityCommunityIDID Final Report Final Report

• Ernst & Young Entrepreneur of the Year® 2007 Southwest Area

• Named Key Player in the Retail Industry for 2006 by Retail Traffic Magazine

• Selected as American Business Awards 2006 Most Innovative Company for up to 2,500 employees

• The largest provider and #1 expert in customer analytics solutions

• Over 450 years of retail experience

• Analyzed every type of retail, restaurant and service concept

• Modeled over 100,000 retail and restaurant locations

• Over 1,500 clients

About Buxton

Who Initiates Retail Projects?

TRADITIONALLY-• Developers• Land Owners• Retailers

TODAY-• Communities

Enhances residents’ (current and prospective) lifestyles with more shopping and dining choices

Increases property tax receipts

Decreases retail leakage

New, permanent jobs

Expands economic opportunities by attracting more people and businesses

Benefits of a Strong Retail Sector

Cities Can Be Underserved Because:

• Retailers focus on established growth areas

• The best site is selected rather than best trade area

• Outdated data sources don’t show current potential

• Sites and communities inventoried as far out as five years

• You are not on the radar screen

• You are not “pro-business”

Case Study – Rochelle, IL

Their Strategic Plan for Recruiting Retail:

• Commercial/Retail Development Coordinator• City Goals & Priorities• Buildings & Sites Database• Intentional Marketing Strategy• Public-Private Partnerships

Case Study – Marion, IN

Their Process for Guiding Development:

• Planning: master plan, potential sites, inventory

• Assessing: ownership and title status, community input, feasibility analysis

• Managing: site control, assembly, preparation, partnerships, funding mechanisms

• Implementing: assign to end user or developer, integrate use, construction

• Fun: watch developer make tons of cash

McKinney targeted retailers matching their trade area profile

Example: Match to World Market profile

Case Study – McKinney, TX

El Dorado Plaza

Case Study – McKinney, TX

Retailer/Restaurant Sales in Millions Preferred GLA

Ann Taylor $2.44 5,000

Belk $10.30 50,000-180,000

Cost Plus World Market $4.01 18,300

Lane Bryant $1.03 4,200-5,500

Linens & Things $5.44 35,000

Pier One Imports $1.70 9,000-20,000

Talbot’s $1.67 3,700-5,000

Over $1 million in public revenue!

Case Study – McKinney, TX

Key Steps in Strategy Development

Step 1. Delineate Your Trade Area

Step 2. Identify and Profile Your Customers

Step 3. Match Customers to Retailers

Step 4. Provide Customized Marketing Packages

City Limits

8 Mile Ring

15 MinuteDrive Time

Population 9,947 15,715 25,583

Retail Potential$450

million$750

million$1 billion

Restaurant Sales

$41 million

$64 million

$100 million

Automobile Sales

3,243 vehicles

4,522 vehicles

6,968 vehicles

Types of Trade Areas Compared

Drive Time Trade Area

City Limits

Population 9,947

Retail Potential$450

million

Restaurant Sales

$41 million

Automobile Sales

3,243 vehicles

City Limits

8 Mile Ring

Population 9,947 15,715

Retail Potential$450

million$750

million

Restaurant Sales

$41 million

$64 million

Automobile Sales

3,243 vehicles

4,522 vehicles

Core Customers

This profile represents the makeup of a community

Retailers Locate Near Customers

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Community Profile

Core Customers

A retailer profile is then compared to your community profile. The blue bars represent the core segments for the retailer.

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XYZ Company Community Profile

Retailers Locate Near Customers

Now, customers can be identified based on:

LifestylesPurchase

BehaviorMedia Habits

For retailers: It’s Customers, Not People

Psychographics vs. Demographics

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All U.S. households fall into 1 of 66 psychographic segments

Segmentation

The City of Richmond / Wayne County’s Purpose

To identify retailers and restaurants that best fit the market trade area

ApplicationThe City of Richmond and Wayne County can

now focus resources on recruiting specific retailers that match the trade area’s

consumers while working with existing businesses to grow the retail marketplace.

CommunityID

CommunityID

Results:• Incorporated the drive time trade areas for primary & secondary trade area

• Incorporated the household profiles of the consumers in these trade areas

•Matched specific retailers with core customer profiles that are like your households

•Provided retail recruiting packages customized for each targeted retailer

•Developing an outdoor recreation destination retail analysis

CommunityID – Overview of Findings

•Strong demand for goods and services by consumers living in the primary trade area.

•Good overall mix of “core customers” within the trade areas.

•140+ retailers and restaurants identified as having a market in your area.

•Multiple access points/exits along heavily-traveled Interstate 70 a big plus in recruiting new business.

Trade Area: Overview Map

Overview: Secondary Trade Area

Segmentation: Primary Trade Area

Segmentation: Secondary Trade Area

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Upscale, empty-nesting couples College-educated professionals Leading citizens of their small-town community Maintain large investment portfolios Spend freely on computer technology

Segment 9 Big Fish, Small Pond

Psychographics focus on

Customer Lifestyles

Lifestyles

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Psychographics focus on

Customer Lifestyles

Purchasing Behavior

Segment 9 Big Fish, Small PondItem # Lifestyle Characteristics Index

1 Belong to country club 4472 Shop at Talbots 3983 Travel to Germany 3434 Buy women's slacks $100+ 2935 Own/lease new volvo 275

Over 4500 individual categories available

Purchase Behaviors

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Middle-class couples, 50-60 years old

Own home in a small-townHave a granola-and-grits lifestyle Read Country Living, Gourmet,

ForbesBuy recreational vehicles and

campers

Segment 28 Traditional Times

Psychographics focus on

Customer Lifestyles

Lifestyles

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Psychographics focus on

Customer Lifestyles

Purchasing Behavior

Segment 28 Traditional TimesItem # Lifestyle Characteristics Index

1 Drink Diet Rite Cola 3702 Own/Lease New Buick 3203 Own a Camper 2984 Travel to Alaska 2355 Order from L.L. Bean 230

Over 4500 individual categories available

Purchase Behaviors

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Singles and couples over 65 years old Own lower-middle-class, rural homes Held blue-collar jobs, pre-retirement Many served in the militaryMost members of veterans clubs

Segment 38 Simple Pleasures

Psychographics focus on

Customer Lifestyles

Lifestyles

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Segment 38 Simple Pleasures

Psychographics focus on

Customer Lifestyles

Purchasing Behavior

Item # Lifestyle Characteristics Index1 Belong to a Veterans Club 2852 Watch Jeopardy!,3-5 Times/wk 2503 Own Riding Lawn Mower 2084 Church board member 1885 Shop at Walmart 172

Over 4500 individual categories available

Purchase Behaviors

Primary Trade Area Retail Trade Potential

Secondary Trade Area Retail Trade Potential

Retailers and Restaurants Matched

Bed Bath & Beyond Match Report

Bed Bath & Beyond Match Report

Best Buy Match Report

Best Buy Match Report

A 60-minute drive-time trade area was defined to provide a snapshot of the destination retail potential.

Destination Retail – Trade Area

Destination Retail – Segmentation

Destination Retail – Dollar Demand

Strategy + Execution =

Success

•Retail specific material•Aggressive marketing•Developer relationship building•Use real estate brokerage community

Next Steps – Marketing to New Business

•Be realistic

•Remember … retailers come in many shapes and sizes

•Retail diversity is important

•Take some chances…don’t limit yourself

Next Steps – Marketing to New Business

•Realistic trade area delineation

•Retail trade potential of residential population identified and detailed

•Evaluation of consumer tendencies (PRIZM information)

•Opportunities, not Threats…

Next Steps – Marketing Opportunities for Existing Businesses

• ICSC (International Council of Shopping Centers)

• Focuses on:– Membership– Education– Research– Government Relations– Meetings/Conferences

• 56,000 members• Ongoing Buxton Support at the Las Vegas

conference

Leveraging ICSC

CommunityID SCOUT 2.0

Market your community using SCOUT’s dynamic online tools

Click to show your site

Click to show the trade area

Click to show the retailer’s

dominant segment

households

Enter SCOUT together with your target

retailer

Click Match Report to show the retailer you are their target

market

CommunityID SCOUT 2.0

Market your community using SCOUT’s dynamic online tools

Click on a Retailer Marketing Package to show all the data relative to the target retailer and your community

You can send this and other reports electronically to your prospect