3/2/2016. RETAIL RECRUITMENT BOOTCAMP What You need to Know to Succeed
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1 RETAIL RECRUITMENT BOOTCAMP What You need to Know to Succeed 1
2 Speakers: Cody Howell VP & General Manager Buxton Christine Damko Economic Development Analyst Temecula, CA Lisa McCay Senior Vice President Buxton 2 2
3 SITE SELECTION DECISIONS 3
4 The retail mindset: more than demographics Demographics only tell a piece of the story Not actionable Limited application DEMOGRAPHICS Age: Income: $75 100k Married DEMOGRAPHICS Age: Income: $75 100k Married 4 4
5 Understand who the customers are Get beyond demographics Talk about customers Understand consumer behavior Household level PSYCHOGRAPHICS DEMOGRAPHICS Ben Age: Shaw Income: Imperial Way $75 100k Shops Married at Sam s Club Drives GMC Eats at Chili s One Child Netflix Subscriber PSYCHOGRAPHICS DEMOGRAPHICS Tom Age: King Income: Center St $75 100k Married Shops at Costco Drives Volvo Eats at P.F. Chang s Three Children Prefers Movie Theaters 5 5
6 Understand who the customers are Determine your drive-time trade area Thinking like A retailer People shop convenience Accounts for geographic boundaries The heart of your day-in, day-out customer base 6 6
7 What other variables explain performance? Factors include: Drive-time 7 7
8 What other variables explain performance? Factors include: Drive-time Cannibalization 8 8
9 What other variables explain performance? Factors include: Drive-time Cannibalization Competition 9 9
10 What other variables explain performance? Factors include: Drive-time Cannibalization Competition Format 10 10
11 What other variables explain performance? Factors include: Drive-time Cannibalization Competition Format Market type / region 11 11
12 SITE SELECTION 12
13 Restaurant brand Flex-casual and delivery service models 45%/55% lunch to dinner Lease 2,600 3,000 SF Highly visible end cap, leased Start up cost $550K-$600K Average unit volume $1.2mm 15 locations nationally, 8 more by end of year 13 13
14 A01 A02 A03 A04 A05 A06 A07 B01 B02 B03 B04 B05 B06 C01 C02 C03 C04 C05 D01 D02 D03 D04 E01 E02 E03 E04 E05 E06 F01 F02 F03 F04 F05 G01 G02 G03 G04 H01 H02 H03 H04 I01 I02 I03 I04 I05 J01 J02 J03 J04 J05 K01 K02 K03 K04 K05 K06 L01 L02 L03 Segment Percent Customers Trade Area Customer profile
15 Development process Identify potential markets for development Secure qualified franchise partner for market (or larger area) Work together with franchise partner on site selection process Confirm qualitative and quantitative inputs for site Approve site and sign lease Construction and design process Train and open to public 15 15
16 Market selection Qualified franchise partner interest Quantitative Buxton market analysis Economic growth in retail, residential, commercial areas Multiple retail submarkets (3 legs) 16 16
17 Market selection Demand for product (not over saturated in segment) City easy to do business with Established and active chamber of commerce and other related organizations 17 17
18 Site selection Site economic model and timing of delivery Qualitative access, visibility, parking, co-tenants Quantitative Buxton site analysis and scoring variables Complementary uses and competitor analysis Trade area analysis 12+ min drive-time, day time and residential traffic 18 Delivery analysis 8 min drive-time 18
19 Obstacles to development Availability of quality property/space Access to capital Availability of adequate workforce Permitting complexities Timing, inspections, signage, etc. Licensing complexities Alcohol, business, etc. Other costs and complexities Taxes, utilities, insurance Minimum wage levels (state v. federal) 19 19
20 BEFORE YOU START COLD-CALLING 20
21 Before you start cold-calling Step 1 - Know what you need Step 2 - Identify the targets Step 3 - Set the stage 21 21
22 Understand who you are 22 22
23 Assess your current retail state 23 23
24 Assess your current retail state 24 24
25 Compare your community City Population Metro Area Population Bloomington- Normal Champaign- Urbana 129, , , ,891 Decatur 76, ,900 Peoria-East Peoria 138, ,590 Springfield 117, ,
26 Before you start cold-calling Step 1 - Know what you need Step 2 - Identify the targets Step 3 - Set the stage 26 26
27 Understand your community s thumbprint 27 27
28 Your community s thumbprint + = Consumers Drive-Time Trade Area Your Retail Trade Area s Unique Thumbprint 28 28
29 Identify specific retailers for pursuit 29 29
30 Before you start cold-calling Step 1 - Know what you need Step 2 - Identify the targets Step 3 - Set the stage 30 30
31 Prepping for retail Streamline the approval process 31 31
32 Prepping for retail Develop shovel-ready sites 32 32
33 Prepping for retail Pre-determine incentive policies 33 33
34 Prepping for retail Identify differentiators and make information easy to access 34 34
35 Speak like a retailer: know your terms Drive-time Competition & co-tenancy 35 Store size & format Market type/region 35
36 36
37 Running the Retail Race Temecula s story of running smarter.not faster Christine Damko City of Temecula Office of Economic Development DIRECT christine.damko@cityoftemecula.org 37
38 Who is Temecula? LOCATED BETWEEN SAN DIEGO & L.A. MEDIAN AGE: 34 AVERAGE HOUSEHOLD INCOME: $85,839 MEDIAN HOME SALES PRICE (JAN 2016): $435,000 TOP 10% OF SAFEST CITIES IN US (PER FBI) TVUSD TEST SCORES: TOP 20% IN CA TOURISM: 2.6M ANNUAL VISITORS 38 $660M VISITOR SPENDING 38
39 Retail Stats 39 39
40 Temecula Retail Expenditures % Spent Above U.S. Average Women s Apparel 30% Men s Apparel 31% Children s Apparel 35% Household Furnishings 34% Dining at Restaurants 30% Entertainment/Recreation 31% 40 40
41 Some of our Retailers 41 41
42 Queens & Kings of Retail, so we thought
43 So, is this the retail pinnacle? IS THIS IT FOR TEMECULA RETAIL? HOW DE WE REMAIN A RETAIL LEADER? HOW DO WE EVOLVE WITH CONSUMER BUYING HABITS? HOW DO WE GET THOSE MOST WANTED RETAILERS ON OUR LIST? 43 43
44 Start of our Retail Recruiting Race Developed a Most Wanted Retailer List and started calling.. Developed marketing material - touted central location - access to 12 million people within 1.5 hours drive - promoted luxury and high-end - high quality of life 44 44
45 Start of our Retail Recruiting Race ICSC: RECON Vegas - Scheduled targeted meetings with retailers - Brought each retailer a bag: - Three brochures - Mini-bottle of champagne - glass flute 45 45
46 Start of our Retail Recruiting Race The Retailer Me, chasing retailers 46 46
47 Lessons Learned Needed a targeted approach- stop wasting time on retailers that have NO plans on coming to Temecula in the next few years! Needed sophisticated data- specifically demographics Promote a realistic trade area Really understand who our consumers are and what they are buying Develop retail recruitment ambassadors ICSC RECon: Present target information to each meeting, less stuff 47 47
48 Running smarter - Giving honest demographic numbers - Specifically drive time population 48 48
49 Running smarter - We "matched our demographics to retailers that look for similar stats - Intense recruitment of 10 retailers 49 49
50 Running smarter Ally with commercial real estate brokers, land developers, mall and large shopping center owners Provide them with same demographic data, will create specific reports on their request Quarterly meetings individually with ambassadors RESULT= More people doing quality retail recruitment outreach! 50 50
51 Running smarter ICSC RECon: - Pre-Meetings with partners, ambassadors- develop gameplan - Demographics/Marketing Material on flash drives - Meeting and Information is tailored to each retailer meeting - No more bags of STUFF - Immediate follow-up after conference 51 51
52 Results Finishing up 1 st year of running smarter with: In-depth conversations with identified retailers Correct demographic data Efficient, savvy approach to ICSC RECon City of Temecula, partners, ambassadors on same page - united approach 52 52
53 Questions? Christine Damko City of Temecula Office of Economic Development DIRECT 53
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