An Inquiry into Tempe Downtowns Merchandising

by: Charlette Padilla

by: Charlette Padilla

Outline

• Introduction – “An Inquiry into Downtown Redevelopment Efforts of Six Western Cities”

• History of Downtowns

• Differences of Downtown & Shopping Centers

• Central Place Theory

• Questions

• Factors affecting flourishing downtowns

• Retail Mix Characteristics

• Sidewalk Zones

• Conclusion

• Questions from the Audience

History of Downtowns

• Tarjan market (100-110 AD)– downtowns were nerve center of community • Exist in public spaces • Filled democratic need for different people to discussion an open forum • Tolerant of cultural innovation and deviation from convention

• Subcultures • Thrive on urbanism

• Basically part of civic life • Heart of city • World War II- downtowns first things Nazis and communists destroyed • Decisions to locate downtown profound public impact on civic life • Downtown retailing public concern • Downtown mixed with trade, civic activities and socializing makes it a central place for

exchanging not just merch. ,food but also ideas

Viability of Downtowns

• Flourishing Downtowns

1. Will not collapse & exist for upcoming generations

– Stores capable of staying open longer than 5 years

– Growth in downtown population despite population decline in the city

2. Change and stability need to be balanced by human control

– Businesses operating earn a profit

Comparison of CBD with Shopping Center

• Shopping Center

Open Space Unbalanced Distribution of Stores

(Higher & Lower order goods)

Places of activity owned by the public

Individual Stores

Ideas

Controlled Environment Balanced distribution of stores (Higher & Lower order goods)

Private Real Estate Owned

Uniformity

Buy

•Downtown

Definition of a Downtown

• Downtown size within different cities will vary from several square miles to several city blocks

• All downtowns are universal in the concept that they are their city’s central business district (Sohmer & Lang, 2001)

• The term downtown for the purpose of this presentation will be substitutable with central business district (CBD)

Central Place Theory(CPT)

• CPT explains how cities & towns develop hierarchies of economic

activity based on size of population & distance inhabitants are prepared to travel for goods & services

• Range max. distance consumer travel purchase higher & lower goods

• Threshold Minimum population needed for an establishment selling

the good to stay in business

Large threshold Higher order Goods

Larger Population

$ Purchase/Infrequent

Small Threshold Lower Order Goods

Smaller Population

Purchase/Frequently

• Hierarchy of economic some goods & service are purchased

more frequently(lower -order goods & services) - Higher-order goods & services (jewelry, consultant services, etc.) are purchased less often

Central Place Theory (cont)

Multipurpose & One Stop Shopping

• To reduce time & cost, consumers detour from closer stores to visit cluster of stores for different types of higher & lower order goods on same trip (Craig,Ghosh,& Mclafferty, 1984)

• Interconnection of retail stores-mutual dependency between different shops (Thills,1992)

• Added to Christaller’s concepts of hierarchical order of goods, threshold, and range w/attention mix of retailers (Thills,1992)

Questions Core Questions

– In your view, please describe the most important characteristics of downtown Tempe?

– How have these characteristics contributed to the success and failure of the Tempe CBD?

– Please describe the strategies that you use to draw shoppers to your store

• Follow-up Questions

– Does Tempe offer cultural activities in the CBD? If some please describe them. Do all the retailers in Tempe CBD market themselves as one shopping unit? Why or why not, and if yes, please describe their marketing efforts?

– Is a system of centralized retail management used by the retailers in Tempe CBD? If yes, please describe the system used.

Economic Development Factors related to Flourishing CBDs

Infrastructure of Downtown Area Pedestrian friendly downtown -Walking most important mode (Robertson, 1997)

Presence of Plaza shoppers not know indirectly being guided (Pun-Cheng &

Chu,2000)

Presence of Cultural Activities CPT certain retail establishments are dependent on other retail activities w/in same location (Shonkwiler,1996)

Population Trends Underlying CPT is the relationship between population & number of establishments in a central place (Mushinski &

Weiler,2002) 1950 many US cities retail establishments declined along with population

Parking Accessibility Shoppers will not walk more two hundred feet from their parked car to destination (Crow,2003)

Presence of Historical District -Survey “very important” for the utilization of historic buildings (Filion, Hoering & Sanda,1997)

Retail Mix Factors related to Flourishing/Struggling CBDs

• Integrated Shopping Unit- range of benefits,

ease of access, & areas market position (Houston & Nevin,

1980)

• Complementary Image Among Stores-CPT

poses that consumers utilize multi-stop shopping,

well-developed market areas, interconnected stores (Thill,1992)

• Consumers’ Value & Convenience – Same

working hours –pedestrian-friendly environment-the value of pedestrian activity received considerable amount of attention in downtown planning

Downtowns –have distinct sidewalk zones

• Utility zone

• Thru way zone

• Browsing zone

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Beginning, Middle & End Downtowns –have distinct sidewalk zones

• A single message at the entrances is most effective

• Cluttering with lots of products& signage can create confusion " decompression zone”

• Customers are making adjustments-taking off sunglasses, closing umbrellas & developing visual impression

• Reception

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Middle

• The middle of the store comes from inside

• Store designs leads a customer through a journey

• Once they pass through the decompression zone they go to the right

• This referred to as the “strike zone”

• Most compelling merchandise

• Right hand high GMROI merchandise

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End • Cash wrap or checkout counter is the grand finale

• Easy purchase merchandise & conclude their store visit

• Impulse products : purchases without prior plans

• Lasting impression to your customer

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Silo - Thill –One stop w/multiple shops

• Go home to family member & complain

• Unite as one

• Window display event – Shop Hop fabric stores and quilters – Get together twice year

• Vote for best window /punch cards

• Go inside store to vote

• Store most vote –mall management

• Winning Store-products to the raffle winner

• All windows choose same color

THEMES ASSOCIATED W/ FLORISHING CBDS

Existence of design plan for downtown • Walking environment & space design, existence of

historical preservation & existence of design plan & building renovation

• Tucson no design standards ,no architectural committee w/ authority

Provision for cultural activities & attractions • Provide shopping w/varied multiple consumer

experiences, attract businesses operate in the downtown, special events to draw traffic patronize downtown businesses & frequency of events

• Tucson no retail mix create different shopping experiences-Special events not successful in bringing consumers to downtown businesses

Conclusion: CPT states lower-order goods,-purchased more frequently, develop near neighborhoods located adjacent to CBDs. Higher-order goods, specialized goods have ability to draw shoppers into the downtown. Therefore, a CBD that offers a broad range of both higher & lower -

order goods may be considered a destination for shoppers .

Flourishing CBDS: Strong infrastructures, offer cultural activities, provide central management, functions as

an integrated retail mix these efforts extend the range or maximum distance consumers are willing to travel to purchases goods &

services

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10 Lessons 1. Build on repeat customers

2. Word of mouth is powerful

3. Do not compete on price -cherry pickers

4. Compete on Service

5. Inventory is accurate

6. Customer service is an investment not an expense

7. Stay focused

8. Do not be secretive & do not worry about falling behind- work as a unit

9. You need to actively manage your companies image

10. Be wary of so-called experts including me