Franklin Retail Market Study Preliminary Recommendations August 4, 2010

Today’s Presentation Input Review Recap of the market study findings Strategic Themes Recommendations

Process Background Review Interviews and Focus Groups – Roughly 60 Participants Zip Code Survey Market Findings Recommendations

Input -- Strengths Setting and proximity. Fiber loop. Phil Drake’s investments in Franklin. Appalachian Trail. Young people are proud to be from here. Several museums in town. Gem mines.

Input -- Strengths Certified Entrepreneurial Community. “Economic Center West of the Balsams.”

Input -- Challenges 56% of the tax bills go out of the county. Dependency on construction has been a hard hit during the recession. Specialty retail is spread out in a number of districts. Multiple messages – Shop Franklin First, Affordable Franklin, Discover Us, Mountain Treasures, etc.

Input -- Challenges Older population demographic Nothing to keep young people here

Input -- Opportunities Capitalize on affinity groups: –Hikers on the AT –Bikers –Families Tap into Blue Ridge National Heritage Area. Market to “lone wolf” consultants. Realign businesses along the river. Food related businesses.

Input – Desired Uses More variety of accommodations. Restaurants downtown. Belk’s or Kohl’s. Mast General Store. Drug Store. Small meeting facility. Microbrewery. Lone Star, Outback.

Market Analysis - Zip Code Survey Survey Held June 23-July 3 17 Retail Participants Tallied 1988 Recorded Visits 524 Unique American Zip Codes (574) 31 States (36)

Where are they from?

The Trade Area Definition

Retail Market Potential

Refining the Message: Marketing Recommendations Building Critical Mass: Retail Recruitment Recommendations Retail Development Strategies for Franklin Preparing for Investment: Organizational Strategy

Franklin has created and has launched a “brand” identity – (new Hiker logo) Yet there are still multiple branded statements for the community and the region. There is little focus on Franklin as a shopping and dining destination. There are also multiple markets to target. Marketing Issues

The local Franklin resident The seasonal customer The regional customer The visiting customer Marketing Targets

Implement wayfinding ASAP. Work on a “shopping and dining” page for the Town’s webpage: –include a link for shopping and dining on Facebook. –Coordinate and link with Shop Franklin First Consider reinventing print material for the community: –Launch a shopping and dining guide, AND/OR –Work collaboratively on a high quality magazine guide Develop a marketing matching grant for businesses. Marketing Recommendations

First year: $10,000. Matching “allocation” for ads that use the Franklin brand. Merchants may choose preferred media. Web tracking (not discounts) to check progress (particularly important to reconnect to markets that are targets). Consider guerilla marketing tactics. The Marketing Grant Explained

Consider and coordinate all events: –Consider after hours event to promote shopping and dining downtown: art/gallery/shop crawl. –Consider a special event or promotion to recognize seasonal visitors. Marketing Recommendations, Cont’d

Franklin is demonstrating significant retail leakage in several retail categories and significant retail gain in others. Franklin has numerous retail districts within downtown and along the by-pass. There is no single district that has “critical mass” as a gathering spot, a browsing district. Downtown comes closest. Recruitment Issues

Clothing Restaurants Sporting Goods Food related retail Gifts, Jewelry: some of this is already a strength. Retail Targets for Franklin

Consider targeted recruitment of store types: –Anchor/catalyst store for downtown –Outdoor outfitters, sporting goods –Full service restaurant downtown – consider slow food, locally grown, etc. –Retail catalyst: single point of sale craft cooperative or similar Consider signing and marketing of “districts” –Downtown. –River District (Depot Street and Highlands Road). –Heritage Hollow, lower Palmer Street area. Consider “Lone Wolf” office catalyst in upper floors. Consider community meeting space, reception space. Recruitment Recommendations

Franklin has a number of partners working to market and improve the community: –Main Street –Town TDA, County TDC –Chamber of Commerce –Smoky Mountain Host –Blue Ridge National Heritage Area –Shop Franklin First –The Whistle Stop –Center for the Performing Arts There is an opportunity for stronger collaborations and a more consistent message. Franklin should continue to engage young professionals. Organizational Issues

Appoint a volunteer “recruitment team” to solicit interested businesses in locating in Franklin using information from this study. Work on a “young professionals” group to encourage involvement from new people, initiate projects, etc. Consider an annual Franklin Marketing Summit to share ideas and deploy strategies. Host a familiarization tour of Franklin for shopkeepers/stakeholders. Organizational Recommendations