August 2007 City of Richmond / Wayne County, IN CommunityID 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Underserved Because: Retailers focus on established growth areas The best site is selected rather than best trade area Outdated data sources don’t show current potential Sites and communities inventoried as far out as five years You are not on the radar screen You are not “pro-business”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/RestaurantSales in MillionsPreferred GLA Ann Taylor$2.445,000 Belk$ , ,000 Cost Plus World Market$4.0118,300 Lane Bryant$1.034,200-5,500 Linens & Things$5.4435,000 Pier One Imports$1.709,000-20,000 Talbot’s$1.673,700-5,000 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 Minute Drive Time Population9,94715,71525,583 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 Population9,947 Retail Potential $450 million Restaurant Sales$41 million Automobile Sales 3,243 vehicles City Limits 8 Mile Ring Population9,94715,715 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

Core Customers A retailer profile is then compared to your community profile. The blue bars represent the core segments for the retailer. Retailers Locate Near Customers

Now, customers can be identified based on:  Lifestyles  Purchase Behavior  Media Habits For retailers: It’s Customers, Not People Psychographics vs. Demographics

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 Application The 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

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 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

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

Psychographics focus on Customer Lifestyles Purchasing Behavior Segment 9 Big Fish, Small Pond Purchase Behaviors

Middle-class couples, years old Own home in a small-town Have a granola-and-grits lifestyle Read Country Living, Gourmet, Forbes Buy recreational vehicles and campers Segment 28 Traditional Times Psychographics focus on Customer Lifestyles Lifestyles

Psychographics focus on Customer Lifestyles Purchasing Behavior Segment 28 Traditional Times Purchase Behaviors

Singles and couples over 65 years old Own lower-middle-class, rural homes Held blue-collar jobs, pre-retirement Many served in the military Most members of veterans clubs Segment 38 Simple Pleasures Psychographics focus on Customer Lifestyles Lifestyles

Segment 38 Simple Pleasures Psychographics focus on Customer Lifestyles Purchasing Behavior Purchase Behaviors

Primary Trade Area Retail Trade Potential

Secondary Trade Area Retail Trade Potential

Retailers and Restaurants Matched

Bed Bath & Beyond 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