1. 1 Finding the Retail Niche October 2004

2. 2 Agenda Who is Buxton? Why recruit retail? How do you currently sell your community? How should you be selling your community?

3. 3 Customer research firm specializing in retail site selection Over 400 years of retail experience Analyzed virtually every type of retail concept Over 2.5 billion square feet of analysis in 2003 Over 1,000 clients including retailers, restaurants, developers and communities We Speak Retail!

4. 4

5. Economic Development

6. 6 Only recruit companies that export goods and services such as: Manufacturing Distribution Warehousing Call Centers Tourism Traditional Economic Development

7. 7 11.7 % of all jobs 11.5 % of all jobs Manufacturing and Retail Trade “Tradition” is Making Way for Reality In 1960, there were nearly three manufacturing jobs for every retail job. In 2004, retail employment now exceeds manufacturing employment.

8. 8 Just 16 randomly selected Buxton retail clients… Represent over 6,000 potential new locations nationwide, Generating more than $10 billion in sales, Creating over 108,000 jobs, With a payroll exceeding $3 billion. Retailers have to grow to survive Reality is Retail

9. 9 Increase sales and property taxes Create new, permanent jobs Bring new dollars into the community Retain dollars that are currently spent outside the community Satisfy citizens desires to shop at home Retail is Revenue Are you getting your fair share?

10. Traditional Retail Recruitment The focus is on people, not customers

11. 11 Age Sex Race Income Demographic Methodology Traditionally, locations were selected based on:

12. 12 City Limit Trade Area DemographicsCity Limit 2003 Est. Population27,365 Population Growth, 1990-2000 10.49% 2003 Est. Households9,947 2003 Average Household Income $61,537 2003 Residential Property Value $207,057

13. 13 Ring Trade Area 8 Mile Ring Households15,715 Retail Potential$750 million Restaurant Sales$64 million Automobile Sales 4,522 vehicles

14. 14 Truth of Traditional Methodology Demographic data is too general and too stale Identifies people not customers Does not explain what people like to buy Does not define a true trade area Retailers have this information… for free Retailers may have already “passed” on your community Does not differentiate you from other communities

15. Retail Recruitment Today The focus is on customers, not people

16. 16 Retailers no longer decide by “location, location, location ” -Keynote speaker at 2004 ICSC Location decisions are based on the density of customers In the next two years, only 11 new malls will open ICSC statistic Age and mobility dynamics keep customers close to home Understand the Market

17. 17 Understand the Retailer Retailers have to open new stores comp store gains do not satisfy revenue requirements Retail development has changed dramatically lifestyle centers, neighborhood shopping… convenience Retailers typically plan new stores two years in advance permitting, construction, staffing, advertising, inventory

18. 18 Understand the Technology Sophisticated computer technologies Multiple databases GIS mapping systems Online satellite photos

19. How To Identify Trade Areas

20. 20 Retailers Locate Near Customers Shortest route is calculated in minutes for each customer 1 Min 2 Min 3 Min Customers think in terms of time and convenience… they “think” drive time.

21. 21 Drive Time Trade Area Variable:City Limit 15-Minute Drive Time 2003 Est. Population 27,36571,483 Population Growth, 1990-2000 10.49%19.47% 2003 Est. Households 9,94725,583 2003 Average Household Income $61,537$62,119 2003 Residential Property Value $207,057$218,544 City Limit vs. Drive Time

22. 22 Drive Time Trade Area Variable: 8 Mile Ring 15 Minute Drive Time Households15,71525,583 Retail Potential$750 million$1 billion Restaurant Sales$64 million$100 million Automobile Sales 4,522 vehicles 6,968 vehicles Ring vs. Drive Time

23. How To Identify Customers

24. 24 Now, customers can be identified based on: Lifestyles Purchase behavior Media habits Psychographics, not Demographics It’s Customers, not People

25. 25 20 terabytes of data on over 100 million households Customer Data Managed in-house

26. 26 Telecommunications Consumer Profiles Shopping Centers Trade Potential Restaurant Data Automobile Data Business Data Segmentation Demographics Consumer Data Street Data Over 185 Databases In-House

27. 27 Current Affairs/Politics Cycling Diet/Weight Control Do-It-Yourself Domestic Travel Electronics Electronic Games Fashion Clothing Financial Investing Fishing Fitness/Exercise Foreign Travel Gardening Golf Grandchildren Health/Natural Foods Health/Vitamins Home Decorating Home Entertainment Home Furnishings Home Improvement Lifestyle Data Astrology Automotive Work Baking Bird Feeding Bird Watching Boating/Sailing Books - Non Fiction Books - Fiction Bowling Camping/Backpack Career Goals Casino Gambling Charities Collect Art/Antiques Collect Stamps/Coins Collectibles Cooking Crafts Crossword Puzzles Cultural/Art Events Home Video Home Workshop Horseback Riding Hunting Hunting - Shooting Internet Usage Money Making Motorcycles Movie Going Music/Dance Nation’s Heritage Needlework Personal Computers Photography Play Sports Pre-Recorded Videos Quilting Racquetball Recipes Records/Tapes/CD’s Recreational Vehicle Running/Jogging Science/New Tech. Self-Improvement Sewing Snow Skiing Soccer Swimming Symphonies, Attend Tennis Travel TV - Watch Cable TV - Watch PBS TV - Watch Sports TV - Shop Via Vacation Cruises Video Viewing Volunteer Work Walking for Health Wildlife/Environment Wines Woodworking

28. 28 Electronics ELECTRONICS Buy Any TV Buy Any Video Game System Buy Blank Audio Tapes Buy Blank Video Tapes Buy Computer System Buy Home PC at Computer Store Buy Stereo Equipment Buy TV for $300+ Make Internet for Purchase for Business Most Recent TV Set is Large (27"-35" Own 2+ Video Cassette Recorders Own 3+ Television Sets Own Any Video Game System Own Camcorder Own Cassette Recorder/Player Own CD-Rom Drive for PC Own DVD Player Own Electronic Personal Organizer Own Entertainment/Games Software Own Fax Machine Own Home Theater System Own Large/Projection Screen TV (27+") Own Laser Printer Own Laserdisc Player Own PC Speakers Own Pocket-Sized Radio/Cassette Own Portable CD Player Own Portable Radio/Tape Player Own Receiver Own Satellite Dish Own Speakers Own Standard CD Player Own Stereo TV Own TV Monitor with Input/Output Jacks ELECTRONICS Buy Any TV Buy Any Video Game System Buy Blank Audio Tapes Buy Blank Video Tapes Buy Computer System Buy Home PC at Computer Store Buy Stereo Equipment Buy TV for $300+ Make Internet for Purchase for Business Most Recent TV Set is Large (27"-35" Own 2+ Video Cassette Recorders Own 3+ Television Sets Own Any Video Game System Own Camcorder Own Cassette Recorder/Player Own CD-Rom Drive for PC Own DVD Player Own Electronic Personal Organizer Own Entertainment/Games Software Own Fax Machine Own Home Theater System Own Large/Projection Screen TV (27+") Own Laser Printer Own Laserdisc Player Own PC Speakers Own Pocket-Sized Radio/Cassette Own Portable CD Player Own Portable Radio/Tape Player Own Receiver Own Satellite Dish Own Speakers Own Standard CD Player Own Stereo TV Own TV Monitor with Input/Output Jacks Purchasing Behavior Data

29. 29 Identification All U.S. households fall into 1 of 50 psychographic segments

30. 30 Typically are married with few if any children Live primarily in the suburbs Have above average incomes Are likely to lease their most recent vehicle Tend to have a great deal invested in their homes Segment 10 - Home Sweet Home Psychographics focuses on Customer Lifestyles Media Habits Lifestyles

31. 31 Psychographics focuses on Customer Lifestyles Media Habits Purchasing Behavior Segment 10 - Home Sweet Home Purchase Behaviors

32. How To Identify Matching Retailers

33. 33 Trade Area Profile Dominant Segments These eight dominant segments represent 81 percent of all households in the trade area

34. 34 Retailer Profile Applebee’s

35. 35 Trade Area Matches Retailer Trade Area Comparison Applebee’s Average Trade Area Anytown, USA Site Trade Area Total Population 63,97571,483 Total Households 25,219 25,583 Applebee’s Dominant Segment Count 13,20515,211 Dominant Segments

36. 36 Trade Area Does Not Match Retailer Trade Area Comparison AutoZone Average Trade Area Anytown, USA Site Trade Area Total Population 63,26071,483 Total Households 22,269 25,583 AutoZone Dominant Segment Count 9,5954,361 Dominant Segments

37. In Partnership With The National League of Cities In Partnership With The National League of Cities Retail Recruiting Program

38. 38 What is CommunityID? Matches the specific retail and restaurant concepts to the buying habits and lifestyles of the consumers living in your trade area Is the only program of its kind that can factually identify exactly which concepts should be in your community

39. 39 Where is Community ID ? Community ID Over 100 Communities in 27 States

40. 40 Response to Community ID “Be advised we are very interested in this town and would be happy to talk as to what is available. If you have others in these parameters we would be willing to look as well.” Roy Saunders, Vice President of Development Fastrip Food Stores “With the results of CommunityID, I have been able to put together a great package of information that is timely, detailed and strongly supports the opportunity for business growth in this area… One retail broker told me that he had never seen the support and knowledge about a city that we have.” Linda Little Director of Business Retention & Expansion, McKinney Chamber of Commerce

41. 41 Match Trade Areas We identify retailers with existing locations in trade areas like yours Customers Existing Location Your Trade Area

42. 42 Major Categories – Consumer ProductsDollars/Trade Area Children’s Apparel$18,927,218 Men’s Apparel$23,887,995 Women’s Apparel$37,058,263 Personal Services and Household Items$129,886,940 Groceries$18,402,005 Alcohol$103,006,107 Restaurants and Bars$16,137,765 Tobacco Products$22,380,366 Home Improvement and Household Services$41,948,249 Furniture, Appliances and Décor$14,412,147 Automotive$45,488,177 Fuel$54,030,857 Electronics$43,761,382 Recreation$42,108,206 Entertainment$30,455,139 Other$522,993,222 TOTAL$1,201,521,318 Sample Trade Area Demand

43. 43 Sample Tenant Match Retailer and RestaurantPreferred GLA Applebee's Neighborhood Grill5,000 Baskin-Robbins Ice Cream1,500 – 2,500 Blimpie's Restaurant500 – 2,500 Blockbuster Video2,500 – 4,800 Crescent Jewelers1,100 Dollar Tree6,000 – 12,000 Foot Locker1,800 – 10,000 General Nutrition Center1,000 International House Of Pancake4,200 – 5,000 Payless Shoe Source2,400 – 3,000 Pier 1 Imports9,000 – 20,000 Play It Again Sports2,500 – 3,200 Ross Stores Inc30,000 Sally Beauty Supply1,200 – 1,800 Staples The Office Superstore10,000 – 25,000 Sunglass Hut150 – 4,000 Target126,000 – 175,000 Victoria’s Secret3,900 – 4,500 Wienerschnitzel700 – 2,000

44. 44 Sample Score Sheet

45. 45 Sample Score Sheet

46. 46 Summary Differentiate your community’s retail recruitment approach Sell your trade area, not your community It’s about customers, not people Be proactive in your community’s economic future

47. 47 Trade Area “A” Remember: Customers, Not People Trade Area “B” Total households Pier 1 Customer Count: 14,672Pier 1 Customer Count: 14,396 Customers Total Households: 25,982 Total Households: 109,930

48. 48 Retailer Recruiting Packages Just as you would prepare data to market your community to the industrial sector, you need the type of data retailers use to make location decisions.

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