Retail Marketing

Workshop
City of Anniston, AL

August 20, 2009

Copyright© 2009 Buxton Company. All Rights Reserv

Retail is in Our DNA

• Industry Leader in Customer Analytics

• 1,400+ Retail & Restaurant Clients

• 450+ Public Sector Clients

• 20M+ square feet of retail expansion by our community

clients
• Daily interface with senior retail real estate executives
We Speak Retail!

Success is insight.
Our Clients
• Retail Clients – 1,400+

• Community Clients – 450+

• Healthcare Clients – 100+

Success is insight.
City’s Goals

City of Anniston’s Purpose

To better understand the retail environment and
opportunities for the City

Application
Anniston now has a better understanding of its retail
trade area, customer base and retail potential. The city
can move forward with a very focused retail strategy to
capture retailers that are appropriate for its customers.

Success is insight.
Executive Summary

The following sites were submitted to Buxton for preliminary

analysis:

– Choccolocco Rd & Golden Springs Rd

– Greenbrier-Dear Road & South Quintard
– McClellan Blvd & New Summerall Gate Rd
– 15th Street & Noble Street

15th Street & Noble Street and Choccolocco Rd & Golden

Springs Rd. were then used for complete analysis and retail
matching.

Success is insight.
Key Steps in Strategy Development
Step 1. Defining Trade Area
Step 2. Identifying and Profiling Customers
Step 3. Understanding Retail Potential
Step 4. Matching Customers to Retailers
Step 5. Creating Customized Marketing Packages

Success is insight.
Step 1. Defining Trade Area

A 10-minute drive time was

established for each Site.

Factors considered when

selecting the drive time
include:
•Region
•Existing retail in
surrounding areas
•Density of the community

Success is insight.
Step 2. Identifying and Profiling
Customers
For retailers: It’s Customers, Not People

Customers are identified

based on psychographic
characteristics which
include:
•Lifestyles
•Purchase Behavior
•Media Habits

Success is insight.
 Segmentation
All U.S. households fall into 1 of
66 psychographic segments

0
1 3 5 7 9 1
1 1
3 1
5 1
7 1
9 2
1 2
3 2
5 2
7 2
9 3
1 3
3 3
5 3
7 3
9 4
1 4
3 4
5 4
7 4
9 5
1 5
3 5
5 5
7 5
9 6
1 6
3 6
5

Success is insight.
 Lifestyles
Psychographics focus on
Customer Lifestyles

Segment 28 Traditional Times

2
Middle-class couples, 50-60 years
old
Own home in a small-town
1
Have a granola-and-grits lifestyle
Read Country Living, Gourmet,
Forbes
0
1 3 5 7 9 1
1 1
3 1
5 1
7 1
9 2
1 2
3 2
5 2
7
Buy recreational vehicles and
2
9 3
1 3
3 3
5 3
7 3
9 4
1 4
3 4
5 4
7 4
9 5
1 5
3 5
5 5
7 5
9 6
1 6
3 6
5

campers

Success is insight.
 Lifestyles
Psychographics focus on
Customer Lifestyles

Segment 48 Young & Rustic

2
Young, restless singles
Lower income, high school educated
Rent tiny apartments in exurban towns
1
Service industry jobs and modest
incomes
0
Lifestyles centered on sports, cars,
1 3
dating
5 7 9 1
1 1
3 1
5 1
7 1
9 2
1 2
3 2
5 2
7 2
9 3
1 3
3 3
5 3
7 3
9 4
1 4
3 4
5 4
7 4
9 5
1 5
3 5
5 5
7 5
9 6
1 6
3 6
5

Success is insight.
 Lifestyles
Psychographics focus on
Customer Lifestyles

Segment 57 Old Milltowns

2
Retired singles and couples, downscale
incomes
Elementary or high school education
1
Live in pre-1960 housing in aged mining towns
Enjoy gardening, sewing
0
Socialize at veterans clubs, eat at casual
1 3
restaurants
5 7 9 1
1 1
3 1
5 1
7 1
9 2
1 2
3 2
5 2
7 2
9 3
1 3
3 3
5 3
7 3
9 4
1 4
3 4
5 4
7 4
9 5
1 5
3 5
5 5
7 5
9 6
1 6
3 6
5

Success is insight.
Step 2. Profiling Customers - Choccolocco Rd
and Golden Springs Rd 10 Minute Trade Area

Trade Area Segmentation –

Psychographic profile of
customers within the trade
area

Dominant Segments –
Psychographic
segments that make
up at least 3% of the
trade area

Success is insight.
Step 2. Profiling Customers - 15th Street
and Noble Street 10 Minute Trade Area

Trade Area
Segmentation –
Psychographic profile of
customers within the
trade area

Dominant Segments –
Psychographic
segments that make up
at least 3% of the trade
area

Success is insight.
Step 3. Understanding Retail Potential -
Choccolocco Rd and Golden Springs Rd
10-Minute Retail Leakage/Surplus Analysis
• How many dollars are leaving
• What stores attract outside dollars
• How strong is our retail sector
• What are our retail opportunities
• What are the opportunities for local retailers

Example of Major Store

Type. Buxton analysis
details:
• 74 Store Types
• 36 Product Types

Success is insight.
Step 3. Understanding Retail Potential
15th Street and Noble Street
10-Minute Retail Leakage/Surplus Analysis
• How many dollars are leaving
• What stores attract outside dollars
• How strong is our retail sector
• What are our retail opportunities
• What are the opportunities for local retailers

Example of Major Store

Type. Buxton analysis
details:
• 74 Store Types
• 36 Product Types

Success is insight.
Step 4. Matching Customers to
Retailers
The Trade Area profile was matched to the profiles of over
4,500 retailers and restaurants.
A wide variety of categories were identified as good
opportunities for Anniston’s trade area, including:
• Children’s Apparel, Furniture/Beds
• Shoes
• Sporting Goods/Athletic Apparel
• Book Stores, CD/Music
• Hardware/Home Improvement
• Supermarkets

Success is insight.
Executing Anniston’s Retail
Strategy

Marketing is not an option – it’s mandatory

Market Anniston’s Retail Advantages:

• Location (Trade Area)
• Retail Potential (Leakage/Surplus report)
• Retailer’s customers in your trade area (Retail Match
Report)
• Your site compared to other locations (Retail Match
Report)

Success is insight.
 Step 5. Custom Marketing
Packages
Supporting
Contact Maps
Information

Profile
Match
Reports
Site Description
Marketing Packages can also be
created for developers, brokers,
and franchisees.

Success is insight.
CommunityID SCOUT 2.0
Market your community using SCOUT’s Enter SCOUT
dynamic online tools together with your
target retailer

Click to show your

site
Click to show your
trade area

Click to show the

retailer’s dominant
segment
households
Click to show
Google aerial map

Click to show
zoomed in aerial
map
Click Match Report
to show the retailer
you are
Success is insight. their target market
CommunityID SCOUT 2.0
Create a Leakage/Surplus Analysis Report
at any point in your community Enter SCOUT

Locate a site for

a Leakage
Surplus report

Right click your

mouse and
select Run Retail
Leakage/Surplus
Report Here

Fill in the
required field,
select type of
trade area and
click Run.
When the report
is completed,
select “View
Report” or
“Save Report.”
Success is insight.
 CommunityID SCOUT 2.0
Market your community using SCOUT’s dynamic
online tools
•Click on a
Retailer
Marketing
Package to show
all the data
relative to the
target retailer
and your
community

•You can send

this and other
reports
electronically to
your prospect

Success is insight.
Executing Anniston’s Retail
Strategy
There is no single marketplace…

Aggressively market to:

• Targeted Retailers
• Retail Developers
• Commercial Real Estate Firms
• Shopping Center Owners
• International Council of Shopping Centers
(Las Vegas and regional events)

Success is insight.
Executing Anniston’s Retail
Strategy

• Creating a retail-friendly climate

• Assembling and preparing sites
• Streamlining permitting and zoning
• Providing targeted incentives
• Offering opportunities for existing retailers via Leakage
data

Success is insight.
Executing Anniston’s Retail
Strategy

Use Buxton to stay current

• Client E-newsletter
• SCOUT- online marketing tool
• Educational Webcasts
• ICSC Support
• Client Services Team
• Additional Retail Matches and Data Updates

Success is insight.
 Understanding
the Retailer

Success is insight.
Retail Trends and Their Impact on
Communities

• Fewer choice sites

• Consolidation continues
• Reinventing/redeveloping/small concepts
• Sustainability
• Alternative uses
• Mixed-use projects multiply

Success is insight.
Retail Facts

• Retail $3.8 trillion in annual sales

• $4.2 trillion with food
• 95% of all retailers are single-store, yet they do less than
50% of annual retail sales

Success is insight.
Understanding the Retailer

Primary Location Goal

Select sites that can sustain profitability throughout the
life span of the store or shopping center

Success is insight.
Understanding the Retailer

Important data needed for new site selection:

• Profile of customers in the trade area
• Competitive information
• Traffic patterns
• Co-tenancies and adjacencies
• Available real estate

Success is insight.
Understanding the Retailer

In addition to selecting new sites, location decisions can

include:
• Lease renewals
• Relocations in trade area
• Store remodeling/refreshes
• Stores closings

Success is insight.
Understanding the Retailer

An average of ten sites are screened for every one selected:

• 36% are approved in the field
• 59% are approved by a real estate committee

Success is insight.
Understanding the Retailer

Key decision makers on the real estate committee

VP Real Estate – 67%

CEO – 58%
CFO – 47%
VP Store Operations – 37%
COO – 27%

Success is insight.
Executing Your Retail Strategy

Most Communities have a marketing disability

How do you overcome a marketing disability?

Execution
Execution
Execution

Success is insight.
Executing Your Retail Strategy

Crafting a marketing strategy is one thing…

Making it work (execution) is another.

Success is insight.
 The Execution Roadmap
The Marketing Strategy
• Anniston’s Goals/Desired Results
• Define Roles and Schedule
• Focus Programs and Activities
• Set Promotional Mix
• Allocate Resources

Success is insight.
The Execution Roadmap

Remove barriers to entry

• Assemble Sites
• Invests in Infrastructure
• Formulate an incentive policy
• Streamline rules and regulations

Success is insight.
What Hinders Execution

• Empty commitments or inadequate resources

• Lack of understanding retailer’s needs
• Changing leadership, staff and priorities
• Confusion over expectations and desired results
• Conflicting accountabilities

Success is insight.
 Buxton Survey –
10 High-
Performance
Cities
Success is insight.
How High-Performance Cities Execute

• An unwavering focus on desired results

• An understanding and commitment to serve retailer’s
unique needs
• Align programs, incentives and resources to marketing
strategy
• Staffs that are marketing-savvy
• Civic leaders involved in execution

Success is insight.
How High-Performance Cities Execute

Most productive marketing efforts:

1. Direct selling to retailer/developer
2. Direct selling to commercial real estate firms
3. Attending regional ICSC meetings
4. Websites
5. Attending ICSC – Las Vegas

Success is insight.
How High-Performance Cities Execute

Poorest performing marketing efforts

1. Direct mail
2. Media advertising

Success is insight.
How High-Performance Cities Execute

Do you keep in contact and continue to market to retail

chains already located in your community?
Yes – 85%

Success is insight.
How High-Performance Cities Execute

80% Conduct retention and expansion programs for

local retailers

Success is insight.
How High-Performance Cities Execute

Is retail development a component of your community’s

economic development strategy?
Yes – 85%

Success is insight.
From Buxton 2008 Survey

72% of communities have offered incentives for retail

development

Success is insight.
Marketing in the Location Decision
Cycle

Cycle Marketing role

Interested Promotion
Seriously interested Presentations
Decision Selling
Speed to market Follow up

Success is insight.
Marketing Lessons

• Public/private partnerships build retail successes

• Each win provides a new opportunity - success breeds
success
• The organizational structure that supports execution must
be in place
• If you are not in it for the long haul, you are better off not
starting

Success is insight.
 Making the
Presentation
Work for You

Success is insight.
Your Challenge

Making your message…

STICK

Success is insight.
Understand Who You Are Pitching

1 Knowledge about the

Company

Success is insight.
1 Understand Who You Are
Pitching
On one side
ANALYTICAL
LOGICAL
LINEAR
NUMERICAL
VERBAL

Success is insight.
1 Understanding Who You Are
Pitching
On the other side
INTUITIVE
EMOTIONAL
SPATIAL
VISUAL
PHYSICAL

Success is insight.
2 Your message is…

what VALUES
YOU PROVIDE

Success is insight.
3 Making it STICK

Distinctive
Believable
Addresses my needs
Brief

Success is insight.
 BE DIFFERENT

Success is insight.
Execution Means

• Not just doing marketing tasks

• Not just installing marketing programs and systems

Achieving Anniston’s Goals

Success is insight.
Thank You
Joe Fackel, Senior Vice
President
Bill Shelton, Partner,
CommunityID

Success is insight.