Retail as a Catalyst for Economic Development

ICSC RECon retail economic development session.

LAS VEGAS—As neither property owners nor brokers, public and non-profit officials who seek to improve downtown districts face a significant challenge in the effort to manage optimal tenant mix. Yet, the mix of goods and services is one of the most significant drivers of customer visitation. That was according to one of Monday’s ICSC RECon 2016 sessions. Lacy Beasley , president & COO of Retail Strategies LLC at Birmingham, AL, one of the speakers, said that traditional thinking in economic development was that you didn’t necessarily plan on retail as an expansion, but that has really changed. “Retail is so important to create that vibrant community. And it really helps you on industrial recruitment,” she explained. “Retail is a catalyst for economic development.” And it isn’t just the big sexy malls and mixed-use centers, Beasley said. Fast food brings in millions of dollars and many jobs, she said. Moving forward, what is really influencing our industry is e-commerce, but it is still only 9% of retail sales, Beasley said. “But omni-channeling is the big buzz word right now and you really have to have both to thrive.” One of the things that Terrie Battuello , chief of business development at the Port of Everett in Washingon, is seeing in many communities is that the industrial centers of the 1980s are not the places people want to locate. “People are looking for neighborhood retail and activities they can do during the work day, so while retail follows roof tops, jobs follow retail.” She added that “Retail is an important thing for a community that wants to define your community.” So where are the opportunities for retail? Beasley said that the assumption is that there will be about 42,000 new store locations coming online. “The ones that are struggling right now are things that have been hit hard by e-commerce like bookstores, video stores, do-it-yourself home stores, mid-priced apparel, mid-priced grocery, office supplies, consumer electronics, stationary/gift shops etc.,” she said. “Everything that is average is challenged right now.”