Transcript Document

12 Ways to Expand Your Sales Tax Base
C. Kelly Cofer, CEO - The Retail Coach
2012 Spring/Summer Conference | June 12
Washington Economic Development Association
Spokane, Washington
ABOUT
THE RETAIL COACH
Aaron Farmer
Vice President
We develop and
execute highimpact retail
recruitment and
retention
strategies
C. Kelly Cofer
Austin Farmer
President & CEO
Regional Project Director
From start to finish: retail recruitment is The Retail Coach’s only focus.
CONSUMER CONFIDENCE HITS THE
HIGHEST LEVEL IN OVER FIVE YEARS IN MAY 2012!
Highest level since October 2007, according to the Thomson Reuters/University of Michigan.
The index rose increased to 79.3 from 76.4 the prior month.
Decline in gas prices and an improving housing market is helping offset slower job growth
and volatile stock prices.
Source. www.retailingtoday.com
NATIONAL IMPACT OF RETAIL
• 24% of jobs in the United States are directly or indirectly supported by retail
• 2.5 Trillion: Retail’s total impact on America’s GDP
Source. www.retailmeansjobs.com
IMPACT OF RETAIL FOR
WASHINGTON STATE
71,939
602,477
881,938
$18,162
$33,402
$29,621
$56,782
Retail Establishments
Direct Retail Employment
Total Retail Employment Impact
Direct Retail Labor Income ($million)
Total Labor Income Impact ($million)
Direct Retail GDP ($million)
Total Impact GDP ($million)
Source. www.retailmeansjobs.com
RETAIL MEANS JOBS IN
WASHINGTON STATE
Retail supports
17%
Retail’s total impact on
Washington's GDP
1 in 4
Washington jobs are
supported by retail
Source. www.retailmeansjobs.com
881,938
jobs in Washington
Retail directly &
indirectly generates
16%
of labor income
in Washington
Washington Retail Trade Association is
aggressively seeking retail sales tax fairness
with online retailers, many of whom do not
collect sales tax.
• Affects brick-and-mortar site's ability to compete
• Affects retail industry's job creation
Source: www.retailassociation.org
WHAT CAN YOU DO IN YOUR COMMUNITY?
12 WAYS TO EXPAND YOUR SALES TAX BASE
#1
LOOK AT YOUR COMMUNITY THROUGH
THE EYES OF A RETAILER, DEVELOPER
AND/OR INVESTOR
FIRST IMPRESSIONS ARE IMPORTANT
- Community appearance
- Pride of ownership
(residential and commercial)
- Functional infrastructure
- Evidence of crime
- Codes and code enforcement
- Downtown vitality
Retailers look to minimize risk and maximize profit.
#1
RETAILERS ARE LOOKING FOR OPPORTUNITIES – NOT JUST SITES
Understand the retailer’s
essential location factors:
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Visibility
Accessibility
Regional exposure
Population density
Population growth
Operational convenience
Safety and security
Adequate parking
Adequate signage
A location/site must have each factor in order for a retailer to be successful.
#1
RETAILERS WANT TO LOCATE IN COMMUNITIES THAT OFFER RESIDENTS EVERYTHING
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Downtown district
Business activity
Commerce
Social life
Entertainment
#1
#2
KNOW YOUR COMPETITION
Know your competing
communities’ advantages and
disadvantages
Know the location of their retail
submarkets
Be familiar with their retail
recruitment programs
Know how your community stacks
up against competing
communities in terms of
socioeconomic factors
KNOW YOUR COMPETITION
Have an understanding of
what incentives communities
your size are offering retailers
and developers.
Be careful about entering the
incentives game.
#2
PERFORM A SWOT ANALYSIS OF YOUR COMMUNITY FROM A RETAILER’S PERSPECTIVE
Know your advantages and
understand your challenges.
Address challenges by coming up
with an actionable “to do” plan
based on priority.
Retailers, developers and/or
investors want to know that
something is being done.
Retailers, developers and/or
investors look for stable or
improving communities where
their risk is minimized.
#2
#3
KNOW YOUR RETAIL TRADE AREA
RETAIL TRADE AREA DYNAMICS
A Retail Trade Area is the
largest distance consumers
are willing to travel to
purchase retail goods and
services.
The size depends on the
variety of goods and services
offered in your community
and proximity to retail in
nearby competing
communities.
#3
RETAIL TRADE AREA MUST BE ACCURATE
An accurate Retail Trade Area
is the foundational tool for a
retail recruitment strategy.
Make certain it is accurate by:
Meeting with or interviewing
retailers
Interviewing survey customers
Confirming with license plate
survey
#3
RETAIL TRADE AREA MARKETING
Market your community to
retailers and real estate
developers as a Retail Trade
Area population, not a
community population.
#3
RETAIL TRADE AREA PRIMARY AND SECONDARY
Primary Retail Trade Area
Consumers who are likely to shop
in your community more than
once per week (where retailers
derive approximately 80 – 85% of
their business).
Secondary Retail Trade Area
Consumers who are likely to shop
in your community once per
week, or once every two weeks
(where retailers derive
approximately 15 - 20% of their
business).
#3
#4
KNOW YOUR DEMOGRAPHICS
DEMOGRAPHICS DAY AND NIGHT
Have knowledge of your
“area” daytime employment
and recognize the importance
to restaurants.
Restaurants must have
healthy dinner and lunch
business in order to be
successful.
#4
#5
KNOW YOUR PSYCHOGRAPHICS
Psychographics and lifestyle
segmentation have become
increasingly important to
retailers as they seek to
perfect the site selection
process.
THE RETAIL ECONOMIC IMPACT OF COLLEGE STUDENTS
Conduct a student
survey to identify:
Primary source of income
Purchasing habits/frequency
% of purchases in/near campus
Retailer-type preferences
Specific retailer preferences
Monthly retail expenditures
#5
#6
KNOW HOW MUCH RETAIL
OPPORTUNITY EXISTS
RETAIL OPPORTUNITY IDENTIFIES LAND USE
Consider highest and best use
of existing properties and
developments, as well as
green field sites.
#6
#7
DEVELOP MARKETING AND
FEASIBILITY STUDIES
Make certain that all real
estate brokers, developers
and investors use the same
market information.
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Retail Trade Area
Retail Trade Area population
Demographics
Psychographics
Retailer gap information
Traffic counts
Eliminate confusion and
minimize questions.
PRESENT A CLEAR IMAGE
Have a current aerial photograph of
your community and surrounding area
highlighting:
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City limit and ETJ boundaries
Major thoroughfares
Major retailers/developments
Planned/platted residential developments
Schools/universities
Planned/proposed roads
Parks, hospitals
Major employers/business parks
#7
BE READY TO SEND INFORMATION IMMEDIATELY
Upload all retail information
on your website and make
certain it is accurate, current
and easy to find.
This is becoming more and
more important.
Retailers and developers may
visit your community without
your knowledge.
#7
#8
REACH OUT TO RETAILERS
SELL YOUR COMMUNITY FIRST, THEN SELL THE SITES
Goal: Get the retailer to the
community.
Have knowledge of sites that may
interest the retailer prior to
making the call.
#8
THE IMPORTANCE OF ALCOHOL SALES TO RESTAURANTS
Moral issue or economic
development issue?
Extremely important to
restaurant recruitment
Alcohol sales: 10-20% of a
restaurant’s total sales
Potential economic impact is
significant
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#9
REACH OUT TO DEVELOPERS
THE IMPORTANCE OF DOWNTOWN DEVELOPMENT
Smaller communities must work
harder to attract attention
Do not abandon downtown
Maintain strong residential
support around downtown
Have a downtown redevelopment
strategy
Downtowns have become
entrepreneur-driven
Entrepreneurism increases during
economic downturns
#9
WHO YOU KNOW MAKES A DIFFERENCE
Know the real estate brokers
and developers who are
active in your area:
Have in-house broker functions
Make it easy for brokers: they are
transaction-oriented
Consider a bus tour to showcase
properties
#9
#10
BE SEEN AT ICSC EVENTS
Create a target list of those
retailers you would like to meet
and set up appointments 60 days
in advance
Make new contacts with retailers
expanding into your area and
nurture the relationships
GO IN WITH A PLAN
Have a minimum of two people at
the show; one person to attend
the booth and one to seek-out
prospects
Have a strategic plan for making
new contacts
Set up appointments
Have attainable goals and realistic
expectations
#10
KNOW ABOUT UPCOMING EVENTS
ICSC Next Generation
Program & Reception
20 June, 2012
Spokane, WA
ICSC Pacific Northwest Idea
Exchange
1-2 August, 2012
Stevenson, WA
#10
MANAGING PLAN EXPECTATIONS
Understand your
community’s retail
recruitment and retention
potential and work to
manage the expectations of
your board and the
community.
Confidentiality among staff
and board members is
important.
#10
ENGAGE AND EMPOWER EXISTING RETAILERS
Have a retail retention program.
Network with retailer managers as
often as possible. They can be your best
ambassadors when prospective retailers
are in your community.
- Drop-in regularly
- Schedule breakfasts
- Invite them to retreats and board meetings
- Appoint to committees/board positions
#10
COMMUNICATE YOUR PLAN WITH ALL STAKEHOLDERS
#11
COMMUNICATE YOUR PLAN WITH ALL
STAKEHOLDERS
Articulate your community’s
retail strategy to everyone,
everywhere.
Make certain independent
businesses understand the overall
strategy and how they fit in. Make
every attempt to get their buy-in.
Rule of Thumb: “If they are
not in on it – and up on it –
they will be down on it.”
#12
FOLLOW UP, FOLLOW UP, FOLLOW UP
Retail Recruitment is
a Process and
Retailers Must be
Recruited
Be persistent – a “no” today
might be a “possible maybe”
in six months.
12 WAYS TO BUILD YOUR COMMUNITY’S SALES TAX BASE
1. Look At Your Community Through Their Eyes
2. Know Your Competition
3. Know Your Retail Trade Area
4. Know Your Demographics
5. Know Your Psychographics
6. Know How Much Retail Opportunity Exists
7. Develop Marketing And Feasibility Studies
8. Reach Out To Retailers
9. Reach Out To Developers
10. Be Seen At ICSC Events
11. Articulate Your Plan With All Stakeholders
12. Follow Up, Follow Up, Follow Up
www.theretailcoach.net
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