RETAIL MARKET UPDATE LOCAL DYNAMICS & NATIONAL TRENDS. Copyright 2014 Buxton Company. All Rights Reserved.

Transcription

1 RETAIL MARKET UPDATE LOCAL DYNAMICS & NATIONAL TRENDS Copyright 2014 Buxton Company. All Rights Reserved.

2 Featured Speaker LISA MCCAY Senior Vice President Buxton

3 Overview Local Dynamics The Future of Retail Opportunities & How to Take Advantage of Them Case Study: Temecula, CA

4 LOCAL DYNAMICS

5 Local Dynamics: Riverside County Unemployment is down 5.5% Industrial Vacancy Rate: 4% 6,145 Housing Units

6 Local Dynamics: Inland Empire Market Statistics Key Transactions

7 Local Dynamics: Demographics Population: 493,308 Total Households: 156,049 Median Age: 35 years old Average Household Income: $89,321 Unemployment Rate: 6.5%

8 Local Dynamics: Psychographics 23.9% of households within Southwest Riverside County: Middle-class families living lively lifestyles in city-centric neighborhoods Financially curious, soccer fans, blue-collar income Ethnically-diverse, middle-aged families settled in new suburban neighborhoods Career-focused, professional sports fans, bilingual Mature, upscale couples and singles in suburban homes Retiring in comfort, art connoisseurs, experienced travelers

9 Local Dynamics: Leakage/Surplus

10 THE FUTURE OF RETAIL

11 Omnichannel Retail Definition: providing a seamless customer experience across multiple sales channels In-store Online Catalog

12 Clicks to Bricks Definition: online retailers opening brick and mortar stores

13 Experiential Retail Definition: the entertainment element of retail, which can take many forms How will this effect real estate requirements? Emphasis on unique architecture that creates an inviting space Possible increased demand for stock room space, as floor inventory is reduced

14 OPPORTUNITIES & HOW TO TAKE ADVANTAGE OF THEM

15 Retail Space Is Outpacing Supply Since demand for retail space is outpacing supply, retailers are having to spend more on each site. Community Opportunity: Prove that you are a good investment.

16 Some Retailers Are Struggling Financially While some retailers have strong financial momentum, others are struggling. Community Opportunity: Research the financial stability of the firms you are trying to recruit. This will help you to determine which ones will realistically consider new growth opportunities.

17 Lifestyle Centers Are In Retailers want to be in locations that foster an inviting customer experience. Community Opportunity: Consider mixed-use development that emphasizes community gathering places or redeveloping historic spaces with a unique aesthetic.

18 Brick & Mortar Isn t Dead Retailers are growing their online presence, but aren t giving up on brick-and-mortar stores. Community Opportunity: Don t assume that brick-andmortar retail is dead. There are still growth opportunities in this space.

19 Franchisees Fuel Growth With access to capital tight, many retailers require franchisees to fuel growth. Community Opportunity: Identify residents who are willing to invest in a franchise in order to speed up the recruitment process.

20 CASE STUDY: TEMECULA,CA

21 Temecula Case Study PROFILE: Southern Riverside County 111,024 Residents Diverse Population RESULTS: Nestle Toll House Café By Chip, DSW Shoes, Total Wine & More Promenade Temecula Bolstered Business Attraction & Retention Efforts We've been so pleased with the type of data that Buxton has provided for us. They are innovative, they re fresh in their ideas and the way they present their data, and it was what we needed to push us to that next level. SCOUT helps us in realizing that there are different ways to look at demographics and different ways to analyze what business needs today and how we can fulfill those needs as far as site locations, and providing them our statics in a way they can understand and realize that it s going to fit their need. I see a great future with [Buxton] because that s the way cities have to grow or they die. MARYANN EDWARDS MAYOR

22 QUESTIONS? LISA MCCAY