view downtown retail positioning strategy

Retail Market Analysis & General Positioning Strategy

Retail Market Analysis & General Positioning Strategy

PresentationNovember, 2009

Mike BerneMJB Consulting

Retail Market Analysis and General Positioning StrategyNovember 2009


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IntroductionIntroduction

MJB Consulting– Retail planning and real estate consulting firm– Based in New York City, but works across all of North America

• Particularly active in Canada– Downtown Yonge BIA (Toronto)– Downtown Kitchener BIA– Saskatoon “Cultural Crescent”

» BIA’s of Downtown, Riversdale and Broadway

– Michael J. Berne, President

MJB Consulting– Retail planning and real estate consulting firm– Based in New York City, but works across all of North America

• Particularly active in Canada– Downtown Yonge BIA (Toronto)– Downtown Kitchener BIA– Saskatoon “Cultural Crescent”

» BIA’s of Downtown, Riversdale and Broadway

– Michael J. Berne, President



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MJB Consulting– Three-phase effort

• Market analysis and positioning strategy

• Tenant recruitment campaign

• Roles and responsibilities implementation plan

– Completed first phase in May 2009• With funding from the following:

– Downtown Winnipeg BIZ– Exchange District BIZ– The Forks/North Portage Development Corporation– Centre Venture Development Corporation– City of Winnipeg

MJB Consulting– Three-phase effort

• Market analysis and positioning strategy

• Tenant recruitment campaign

• Roles and responsibilities implementation plan

– Completed first phase in May 2009• With funding from the following:

– Downtown Winnipeg BIZ– Exchange District BIZ– The Forks/North Portage Development Corporation– Centre Venture Development Corporation– City of Winnipeg



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MJB Consulting– Asked to look at four specific sub-districts

• Exchange District

• Waterfront

• Portage Avenue

• Graham Avenue

MJB Consulting– Asked to look at four specific sub-districts

• Exchange District

• Waterfront

• Portage Avenue

• Graham Avenue



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Scope-of-work– Extensive amount of time on site (three visits, two weeks)– Review of previous studies, articles and blogs– Assessment of “site-specific” factors– Review of competing districts/centres– Interviews with local retail brokers and other stakeholders– Analysis of trade area demgoraphic/psycho-graphic profiles– Consideration of other relevant “traffic drivers”– Start-up meeting and final presentation to Downtown BIZ Retail

Steering Committee– Written product (111 pages total)

Scope-of-work– Extensive amount of time on site (three visits, two weeks)– Review of previous studies, articles and blogs– Assessment of “site-specific” factors– Review of competing districts/centres– Interviews with local retail brokers and other stakeholders– Analysis of trade area demgoraphic/psycho-graphic profiles– Consideration of other relevant “traffic drivers”– Start-up meeting and final presentation to Downtown BIZ Retail

Steering Committee– Written product (111 pages total)



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Presentation– Summarizes findings and recommendations of Phase One only

• Provides general direction on appropriate retail mixes

– Analysis as an essential first step• Grounds more implementation-oriented later phases in a realistic

understanding of the market potential

Presentation– Summarizes findings and recommendations of Phase One only

• Provides general direction on appropriate retail mixes

– Analysis as an essential first step• Grounds more implementation-oriented later phases in a realistic

understanding of the market potential



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Exchange DistrictExchange District

Well-positioned for lunch trade Well-positioned for lunch trade



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“Fast-casual” food purveyors– Quick-service format, but…

• Healthier, higher-quality ingredients

• More stylish setting

• Slightly more expensive price point

“Fast-casual” food purveyors– Quick-service format, but…

• Healthier, higher-quality ingredients

• More stylish setting

• Slightly more expensive price point



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Should offer more dining/nightlife for today’s young professionals (an alternative to Canad Inns)– Artsy reputation– Historic architecture– Distinctive atmosphere

Should offer more dining/nightlife for today’s young professionals (an alternative to Canad Inns)– Artsy reputation– Historic architecture– Distinctive atmosphere



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Exchange DistrictExchange District “Casual-chic” restaurant chains

– Embrace a stylish, relentlessly contemporary aesthetic– Tap aspiration to feel young, hip and modern

“Casual-chic” restaurant chains– Embrace a stylish, relentlessly contemporary aesthetic– Tap aspiration to feel young, hip and modern



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Exchange DistrictExchange District “Casual-chic” restaurant chains

– Offer clearly successful, relatively straight-forward model…– … which local/independent operators can emulate and adapt

“Casual-chic” restaurant chains– Offer clearly successful, relatively straight-forward model…– … which local/independent operators can emulate and adapt



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Exchange DistrictExchange District “Psycho-graphics”

– Describing consumers not just in terms of quantitative data (e.g. age, income) but also, qualitative characteristics

• Lifestyle• Sensibilities• Aspirations

– Plays an important role today in determining where they shop, eat and drink

“Psycho-graphics”– Describing consumers not just in terms of

quantitative data (e.g. age, income) but also, qualitative characteristics

• Lifestyle• Sensibilities• Aspirations

– Plays an important role today in determining where they shop, eat and drink



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Exchange DistrictExchange District “Psycho-graphics” “Psycho-graphics”



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Hipsters– Creative types and alternative thinkers who set trends and pioneer

neighborhoods• United not by an occupation, but a common sensibility

– Artists as well as architects, graphic designers, film-makers, computer programmers and students

Hipsters– Creative types and alternative thinkers who set trends and pioneer

neighborhoods• United not by an occupation, but a common sensibility

– Artists as well as architects, graphic designers, film-makers, computer programmers and students



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Yupsters– Combination of “hipster” and “yuppie”– Mainstream professionals who…

• Earn decent salaries• Prefer to live in a relatively established and affluent part of town

– … but who…• Integrate creative and alternative sensibilities into their lifestyles

and consumer preferences

Yupsters– Combination of “hipster” and “yuppie”– Mainstream professionals who…

• Earn decent salaries• Prefer to live in a relatively established and affluent part of town

– … but who…• Integrate creative and alternative sensibilities into their lifestyles

and consumer preferences



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Exchange DistrictExchange District Hipster prospects

– From other (perhaps gentrifying) parts of Winnipeg• Typically do not expand beyond home cities, “keep it real”• Might not want to replicate an existing concept

– The operator, not the business, is the target

Hipster prospects– From other (perhaps gentrifying) parts of Winnipeg

• Typically do not expand beyond home cities, “keep it real”• Might not want to replicate an existing concept

– The operator, not the business, is the target



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Exchange DistrictExchange District Yupster prospects

– “Chain-lets”• Small chains with 2 to 10-units

– Local, from Winnipeg– Regional, from other cities and

have shown a willingness to expand beyond home market

Yupster prospects– “Chain-lets”

• Small chains with 2 to 10-units– Local, from Winnipeg– Regional, from other cities and

have shown a willingness to expand beyond home market



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Exchange DistrictExchange District Yupsters

– Gravitate to areas initially rediscovered by artists…• Drawn to the creative vibe there

– … and displace the original pioneers• Rents increase, landlords become more selective

Yupsters– Gravitate to areas initially rediscovered by artists…

• Drawn to the creative vibe there

– … and displace the original pioneers• Rents increase, landlords become more selective



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Exchange DistrictExchange District Wholesale displacement = dangerous

– The most stable districts draw a diverse mix of consumers• Especially critical in Winnipeg, where:

– Combined market may be limited…– … and is already spread across a number of districts

Wholesale displacement = dangerous– The most stable districts draw a diverse mix of consumers

• Especially critical in Winnipeg, where:– Combined market may be limited…– … and is already spread across a number of districts



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WaterfrontWaterfront

Sit-down eateries focused on breakfast, brunch and lunch Destination businesses

– Example: lashlove

Concepts deriving large % of revenue from non-retail sources– Example: Zcafe

Ones that can trade on peaceful park-land/waterfront setting– Example: day spa

Professional office uses– Example: psychotherapist. Architects, Legal, Accounting, other

Sit-down eateries focused on breakfast, brunch and lunch Destination businesses

– Example: lashlove

Concepts deriving large % of revenue from non-retail sources– Example: Zcafe

Ones that can trade on peaceful park-land/waterfront setting– Example: day spa

Professional office uses– Example: psychotherapist. Architects, Legal, Accounting, other



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Portage AvenuePortage Avenue Focuses on “commodities”

– Brands that can be found in virtually every sub-market in a given metropolitan area

• Consumers will shop at the location most convenient to them

Focuses on “commodities”– Brands that can be found in virtually every sub-market in a

given metropolitan area • Consumers will shop at the location most convenient to

them



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Portage AvenuePortage Avenue Commodities

– Trade area = the area within which Downtown would be the most convenient option

• Map and assess primary commodity-filled competitors– At what point would it be more convenient for residents to head

inward to Downtown (rather than outward)

Commodities– Trade area = the area within which Downtown would be the

most convenient option• Map and assess primary commodity-filled competitors

– At what point would it be more convenient for residents to head inward to Downtown (rather than outward)



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Portage AvenuePortage Avenue Trade area characteristics

– Population = 97,845• Typical mall = 200,000 to

250,000– Median Household Income =

mid to high $20,000’s• Far below the City as a

whole ($43,383)…• … and the five-km rings

surrounding each of the five other major shopping districts

Trade area characteristics– Population = 97,845

• Typical mall = 200,000 to 250,000

– Median Household Income = mid to high $20,000’s

• Far below the City as a whole ($43,383)…

• … and the five-km rings surrounding each of the five other major shopping districts



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Portage AvenuePortage Avenue Traffic drivers for commodity retail

– Largely low-income resident base• Connected by bus and Downtown Shuttle

– Budget-conscious U of W students– Library-goers, likely with a skew towards immigrants and those of

modest means– Conventioneers, from which patronage would be limited– Office workers

• … and that is not enough

Traffic drivers for commodity retail– Largely low-income resident base

• Connected by bus and Downtown Shuttle

– Budget-conscious U of W students– Library-goers, likely with a skew towards immigrants and those of

modest means– Conventioneers, from which patronage would be limited– Office workers

• … and that is not enough



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Portage AvenuePortage Avenue Recommendations

– Redouble efforts to improve demographics of and increase densities in close-in neighborhoods…

– … for which Downtown is the most convenient option• South Point Douglas• In-migration to existing neighborhoods

– West Broadway, Spence, Lord Selkirk Park

Recommendations– Redouble efforts to improve demographics of and increase densities in

close-in neighborhoods…– … for which Downtown is the most convenient option

• South Point Douglas• In-migration to existing neighborhoods

– West Broadway, Spence, Lord Selkirk Park



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– Better-performing Bay anchor• Would generate more traffic from relatively healthier neighborhoods

to the north and east…• … as long as it did not alienate core middle-market customer

Recommendations– Better-performing Bay anchor

• Would generate more traffic from relatively healthier neighborhoods to the north and east…

• … as long as it did not alienate core middle-market customer



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Portage AvenuePortage Avenue Portage as City’s highest-profile street

– Shapes perceptions of the city among visitors, of Downtown among Winnipeggers

– More visibility due to new Canadian Museum for Human Rights

Aim for dilution, not elimination

Portage as City’s highest-profile street– Shapes perceptions of the city among visitors,

of Downtown among Winnipeggers– More visibility due to new Canadian Museum

for Human Rights

Aim for dilution, not elimination



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– Increase mid-market foot traffic with “cross-over” retail• Discount, not deep-discount

Recommendations– Increase mid-market foot traffic with “cross-over” retail

• Discount, not deep-discount



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– Many “cross-over” concepts require…• Large floor-plates (i.e. 15,000 sq.ft.+)• Incentive packages (from the public sector)

Recommendations– Many “cross-over” concepts require…

• Large floor-plates (i.e. 15,000 sq.ft.+)• Incentive packages (from the public sector)



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Portage AvenuePortage Avenue Evening potential

– Well-known food/drink brands targeting a mid-market clientele, with…

• … broadly popular concepts• … unpretentious interiors• … moderate price points

– Not as self-consciously trendy or aspirational as casual-chic

• Feel less overtly “yuppie” and more “down-to-earth” to the average Winnipegger

Evening potential– Well-known food/drink brands targeting a

mid-market clientele, with…• … broadly popular concepts• … unpretentious interiors• … moderate price points

– Not as self-consciously trendy or aspirational as casual-chic

• Feel less overtly “yuppie” and more “down-to-earth” to the average Winnipegger



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Portage AvenuePortage Avenue “Urban Entertainment Center” (UEC) format

– Found in downtowns of a number of U.S. cities– High-octane mix of entertainment, dining and retail

• Multiplex anchor• Mid-market restaurant/bar hybrids• Fast food offerings• Theme-appropriate/casual-chic retailers

– Would synergize with MTS Centre and Convention Centre– Also draw locals looking for “one-stop shop” for their evening fun

“Urban Entertainment Center” (UEC) format– Found in downtowns of a number of U.S. cities– High-octane mix of entertainment, dining and retail

• Multiplex anchor• Mid-market restaurant/bar hybrids• Fast food offerings• Theme-appropriate/casual-chic retailers

– Would synergize with MTS Centre and Convention Centre– Also draw locals looking for “one-stop shop” for their evening fun



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Graham AvenueGraham Avenue

Independents focused on minority/immigrant sub-markets– Help to improve perceptions of city’s ethnic diversity– Could figure in a broader tourist strategy anchored by new Canadian

Museum for Human Rights

Independents focused on minority/immigrant sub-markets– Help to improve perceptions of city’s ethnic diversity– Could figure in a broader tourist strategy anchored by new Canadian

Museum for Human Rights



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Graham AvenueGraham Avenue

Independents focused on minority/immigrant sub-markets– Ones ready to “graduate” from neighborhoods to a more central location

• Focus on aesthetics/cosmetics to make more accessible– Requires technical and financial assistance

Independents focused on minority/immigrant sub-markets– Ones ready to “graduate” from neighborhoods to a more central location

• Focus on aesthetics/cosmetics to make more accessible– Requires technical and financial assistance



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Next StepsNext Steps Phase Two: tenant recruitment campaign

– Securing of “buy-in” from landlords and brokers (2A)– Lobbying government officials for a retail incentives program (2A)– Creation of a vacancy database– Content for a retail leasing brochure– Canvassing for retail prospects– Development of a list of fifteen (15) prospects, complete with “detail

sheets” on each one– Initial round of “exploratory calls” to each prospect– Preparation of a job description for an in-house retail recruiter, interviews

with possible candidates– Training of in-house retail recruiter (using the canvassing for and

exploratory calls to a second list of prospects)– Guidance on conferences and trade shows– Ongoing hand-holding and check-in’s

Phase Two: tenant recruitment campaign– Securing of “buy-in” from landlords and brokers (2A)– Lobbying government officials for a retail incentives program (2A)– Creation of a vacancy database– Content for a retail leasing brochure– Canvassing for retail prospects– Development of a list of fifteen (15) prospects, complete with “detail

sheets” on each one– Initial round of “exploratory calls” to each prospect– Preparation of a job description for an in-house retail recruiter, interviews

with possible candidates– Training of in-house retail recruiter (using the canvassing for and

exploratory calls to a second list of prospects)– Guidance on conferences and trade shows– Ongoing hand-holding and check-in’s



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Next StepsNext Steps

Phase Two: tenant recruitment campaign– Not trying to supplant the role of the broker

• Paid by flat fee, not commission• Realize that Downtown might not be a top priority• Would direct interested prospects to landlords/brokers• See ourselves as providing support to your efforts

Phase Two: tenant recruitment campaign– Not trying to supplant the role of the broker

• Paid by flat fee, not commission• Realize that Downtown might not be a top priority• Would direct interested prospects to landlords/brokers• See ourselves as providing support to your efforts

Contact InfoContact InfoWith ANY comments or questions…

Michael J. BernePresident, MJB Consulting

216 W 99th Street, Suite #19New York, New York 10025

Office | 212 794 0148E-Mail | [email protected]

Web | www.consultmjb.com

With ANY comments or questions…

Michael J. BernePresident, MJB Consulting

216 W 99th Street, Suite #19New York, New York 10025

Office | 212 794 0148E-Mail | [email protected]

Web | www.consultmjb.com

mailto:[email protected]

mailto:[email protected]

2009 MJB Consulting

view downtown retail positioning strategy

Documents

tenant recruitment

house retail

chic restaurant

exchange district

canadian museum

exploratory

human rights

independents