DOWNTOWN SALEM RETAIL PLAN - PRESENTATION TO SRA- MAY 9, 2007Downtown Salem Retail Plan
Presentation to
Salem Redevelopment Authority
May 9, 2007
Karl Seidman Consulting Services
ConsultEcon, Inc.
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Study Goals
Understand downtown markets:
Residents, visitors, workers, students
Analyze downtown business mix:
Strengths, clusters and gaps
Inventory vacancies
Formulate strategies and action plan
Secure buy-in for implementation
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Study Components
Consumer market segment analysis
Downtown businesses inventory
Telephone survey of 360 households
Stakeholder focus groups
Working Group meetings
SRA presentation and public meeting
Prepare Interim and Final Reports
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Consumer Market Analysis:
Trade Area Demographics
Trade area: Salem and 5
surrounding communities
Population: 194,000 and
79,000 households
Median age: 40.5—above
Essex County or Boston region
Higher income: 41% of
households above $75,000
63% of households are one or
two people
33%
16%
21%30%
Trade Area Households by Size
4 or More 1-Person
2-Person
3-Person
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Consumer Market Analysis:
Spending by Segment
$1.45 billion in combined retail & restaurant
spending by residents, visitors, downtown
workers & students
Residents are biggest market: $1.3 billion
(88%)
Visitors are 2nd largest: $124 million (9%)
Salem State students spend $36.5 million
Downtown workers are an $8 million market
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Spending by Retail Category
Largest consumer markets are:
Groceries ($324 million)
Restaurants ($264 million),
Entertainment ($191 million)
Apparel & related services ($157 million)
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Consumer Market Analysis:
Shopping Patterns
Downtown Salem is a shopping & dining destination:
61% of trade residents visit downtown to dine or shop
59% come at several times per month
Downtown ranks first as the primary destination to
dine (59%) and to shop for gifts & crafts (35%)
North Shore/Liberty Tree Malls are key competition
and primary shopping destination for most goods
Saturdays & afternoons are the most common
shopping times
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Customer Evaluation of
Downtown
Customers rate downtown positively
60% rate it good or excellent for 9
of 15 items
80% cite restaurant quality &
selection as good or excellent
Physical attractiveness rated highly
Traffic/parking received lowest
marks: 30-32% rated them poor
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Key Ways to Expand Resident
Shopping Downtown
More diverse shopping options
Clothing and gift/specialty stores are most
likely to draw more shoppers
Expanded arts and cultural offerings
Live music and performances are most
popular
Improved traffic and parking information
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Visitor Trends
Estimated 700,000 tourists annually--26%
of tourists to Essex County
Salem Maritime Site draws 650,000 to 800,000
visitors annually
Salem Witch Museum draws 400,000 per year
July, August, October are peak seasons
Opportunity to increase shoulder season
visitation, esp. in June and September
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Monthly Visitation to Salem
Maritime Site
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Downtown Business Mix
Category Number
of Firms
Square Feet
Retail 107 206,000
Accommodation & Food 61 133,000
Arts & Entertainment 15 105,000
Total 349 819,000
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Downtown
Business Concentrations
55 restaurants
15 attractions
45 gift/souvenirs stores
60% are not witch-themed
Shops exist in most retail categories
Spatial clusters:
Attractions/souvenirs on Essex St. & Pickering Wharf
Clothing stores on Essex St. & Museum Place Mall
Front Street knitting/needle arts cluster
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Downtown Vacancies
28 downtown vacancies, representing
63,000 square feet (SF)
13 vacancies are seasonal spaces or not
available
16 spaces or 38,000 SF currently available
All are less than 5,000 SF
Most are under 2,000 SF
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Sales Gap Analysis
Compares sales to demand to identify store types
where demand exceeds supply.
Sales (supply) exceed demand in almost all retail
categories
Unmet demand for 6 store types that fit
downtown:
Specialty food, shoes, used goods, clothing
accessories, sewing/needlework,
jewelry/leather goods
Salem can add 63,000 SF in retail space by
growing its market share and filling store gaps
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Key Issues and Opportunities
Gain market share among trade area residents to
expand downtown retail base
Grow visitor market especially in May, June and
September
Downtown is best positioned to expand in
Specialty Retail and Dining/Entertainment
to create an unique shopping center
Enhance the appeal of its historic character and
buildings
Grow downtown housing & resident market
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Downtown Retail Strategies
Retail Development Strategy
Experience
Enhancement
Strategy
Market
Development
Strategy
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Retail Development Strategy
Proactive recruitment to attract targeted
businesses
Restaurants, specialty foods, clothing, gifts & crafts,
entertainment
Attract new branches of successful regional stores
Expand entertainment options and branding
Improve permitting process for small businesses
Support business growth and retention
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Retail Development Action Plan
Create downtown recruitment team & tools
Contact target businesses to pitch downtown
location
Establish ombudsperson & permitting team for
small projects
Start one stop application for café permits and
coordinated process for new liquor licenses
Organize signature entertainment event
Continue & expand workshops, expert counseling
and loan programs for downtown businesses
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Market Development Strategy
Unified comprehensive marketing campaign
Targeted marketing to Salem State students &
large employers
Build retail market with downtown housing
Expanded promotions to increase spending by
trade area residents
Year round events program to attract visitors in
off-peak months and boost local shopping
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Market Development
Action Plan
Create downtown marketing campaign:
Cooperative advertising
Single map, guide & web site
Establish monthly night time promotions
Organize loyalty shopping program
Implement Chamber events calendar
Incorporate downtown retail, dining and
entertainment in visitor marketing
Maintain zoning policies to encourage
downtown housing development
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Experience Enhancement
Strategy
Better signs and information
to navigate downtown
Revitalized Essex Street Mall
Sustained façade, cleaning
& beautification programs
Guidance and information
for downtown visitors
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Experience Enhancement
Action Plan
Install kiosks at key locations
Implement way finding system
Create plaza & window displays
on Essex Street Mall; formulate
urban redesign plan
Form & fund downtown clean-up
squad & ambassador’s program
Continue design guidelines and
façade improvement program
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Implementation:
Roles & Responsibilities
Collaboration among city agencies, Main Street
program, chamber, business & property owners
Main Street Program: coordinate overall
implementation and lead key initiatives
City of Salem: leadership, funds and staff to
implement, lead physical improvements &
permitting
Chamber of Commerce: support for events,
promotion & marketing
Business/property owners: use plan to guide their
actions; fund & participate in Main Street program
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Implementation: Resources
A diverse & entrepreneurial
approach to funding
Strategic use & coordination of
existing ad budgets
State grants
Foundation grants
Corporate, utility and institution
funding
Donations and pro bono services
Karl Seidman Consulting
Services/ConsultEcon Downtown Salem Retail Plan
Conclusion
Salem is well positioned to strengthen its
downtown retail base and expand its market
Downtown has solid cultural, economic physical
and organization assets to leverage
Retail Plan provides a shared strategy and blue
print for action
Three Cs are the key to implementation:
Commitment, Coordination and Creativity