2023-05-10 CC Packet - Laserfiche WebLink

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LOC CONSULTING Market Analysis for Downtown Redevelopment City of Centerville Economic Development Authority April 3, 2023 And consumers responded and adopted these new methods of transaction. Even as consumers demand more experiential retail at brick -and -mortar locations, they continue to demand the conveniences that evolved during the pandemic. Curb -side pickup and delivery are here to stay. 3. Weak and struggling retail concepts will continue to disappear from the market. Retailers who lacked cash, have heavy amounts of debt, or who were already suffering sales declines were forced into bankruptcy in 2020 and 2021 to levels not seen in more than a decade. Some retailers that were able to stay afloat during this period because of rent concessions or stimulus payments are continuing to struggle and may ultimately go out of business. 4. Grocery and convenience retail will continue to be viewed as an essential anchor for other retailers. Community and neighborhood shopping centers with a grocery anchor did well in the pandemic and indoor shopping malls did terribly. Consumers are spending more of their discretionary and essential spending online, but grocery stores and other convenience retail have been able to maintain sales. Smaller retailers will look to position themselves near these convenience traffic drivers. And malls will continue to consider adding grocery stores as anchors. S. Direct to consumer brands and online -only retailers will continue to look for traditional brick -and -mortar space to leverage their consumer relationship. Continuing a trend that began before the pandemic, online -only retailers are seeking out brick and mortar locations to leverage their presence in a market. They have realized that an actual physical presence boosts online sales. Many of these retailers look to unique and interesting shopping districts, like Grand Avenue, 501h and France, and North Loop, to capture the attention of their target market. This trend may present an opportunity for local entrepreneurs in Downtown Centerville. 6. E-commerce will continue to grow but will experience growing pains. With the dramatic acceleration of e-commerce, the cracks began to show. Employee shortages at distribution centers, a taxed postal service, and technology glitches and crashes meant that consumers were often left feeling disappointed. And, because of the cost structures, online retail is often much less profitable than an in-store transaction. Retailers know they must do e-commerce to be competitive, but the overall trend is driving down the bottom line. Retail Overview in the Downtown Centerville PMA Map 4.1 shows restaurants and retail in the City of Centerville. The city is served by several convenience stores, liquor stores, and a few specialty retailers. For restaurants, there are two pizza restaurants, two bars that serve food, one cafe/caterer, and an Asian restaurant. The city does not have a grocery store, general merchandise store, or pharmacy. Map 4.2 shows an overview of the restaurants and retail that serves the Centerville PMA. The map includes grocery stores, general merchandise stores, and national pharmacy chains—Walgreens and CVS—along with points showing restaurants and retailers in the area. Grocery Stores and Neighborhood Shopping Centers Page 163 The closest grocery store to the City of Centerville is Festival Foods at the Hugo Marketplace in Hugo. The 54,000-square foot store is located 2.0 miles from Downtown Hugo. The store is a full - service grocery store but does not have a pharmacy. Shopping centers and retail nodes anchored by grocery stores are called neighborhood retail. These shopping areas tend to be smaller and serve trade areas of about 20,000 people, typically within about three miles of the shopping center.