City of New Smyrna Beach Retail Study

Transcription

1 City of New Smyrna Beach Retail Study Illustration 1: Downtown New Smyrna Beach s Canal Street is a walkable historic shopping district with many appealing stores and restaurants. Executive Summary While New Smyrna Beach has one of Florida s most picturesque urban historical waterfront settings, the commercial viability of many of New Smyrna Beach s businesses is challenged and its physical character alone will not secure its economic viability. The City of New Smyrna Beach has three commercial districts that offer distinctive historic walkable shopping areas. Canal Street is the City s original and historic downtown and includes restaurants, retail, office, residential and government buildings oriented to the community at large. The smaller Flagler Avenue commercial area is located on the barrier island adjacent to the ocean, and its businesses are geared towards tourists. The historic west Canal Street commercial area served the African American neighborhoods in the pre civil rights era and still offers a handful of local service and convenience businesses serving its surrounding residents. In addition, New Smyrna Beach has several post-war suburban commercial corridors located along Highway 44, U.S. 1 and U.S. A1A. These strip commercial areas are auto-oriented and include large format retailers such as Wal-Mart, fast food restaurants and free-standing shopping centers. 1

2 Each of these shopping areas has an interesting collection of small boutique stores and restaurants that appeal to local residents and recreational shoppers. However, the economic viability of the City s commercial areas is challenged. While some retailers have steady sales and profits, many of New Smyrna Beach s specialty stores report declining sales, resulting in an unsustainable business model. Illustration 2: Commercial areas of the New Smyrna Beach retail trade area. On the other hand, this study finds that the greater New Smyrna Beach community is generally underserved for many of its primary commercial goods and services, resulting in a potential to support up to 895,000 square feet of new retail development. This market growth potential is being artificially suppressed by non-market factors such as zoning, entitlements and a general public opposition to popular modern retailers and restaurants. Additional retail and restaurant development in or near New Smyrna Beach s commercial districts could improve sales for existing businesses by capturing residential and visitor spending that is leaving the region. For example, a new fishing equipment store that recently opened on Canal Street has had a strong opening by filling an unmet market void. Additional retail and restaurant development is needed for New Smyrna Beach s three historic commercial areas to be economically sustainable. Restricting new commercial growth to protect a few specific businesses is shortsighted and counterproductive for the region s economy as a whole. Purpose and Limits of Study GPG was commissioned by the City of New Smyrna Beach to conduct an independent third party analysis of the historic Canal Street, Flagler Avenue and west Canal Street commercial districts. The purpose of GPG s observations and recommendations is to explore potential opportunities and to increase commerce and retail sales in these historic areas. During this analysis, GPG visited the general entire New Smyrna Beach 2

3 region on May 11-15, 2009, touring each of the commercial areas, the surrounding shopping centers and neighborhoods. GPG also met with downtown property owners, business owners, the Chamber of Commerce, elected officials and city staff to gain insight into the local demographics and market preferences, and to hear their suggestions for the study area. The findings of this study are based upon RCLCo and GPG s market research, the four day planning Charrette, and brief interviews with the public and local stakeholders. The information received from the interviews has not been independently verified. This report s observations and recommendations should not be the sole basis of any master planning, design, land purchases, capital improvements, leasing, financing or development. Illustration 3: GPG s estimated total trade area for New Smyrna Beach extends approximately 9-10 miles, and is shown above inside of the red line. Trade Area This study estimates that most of New Smyrna Beach s commercial trade comes from tourists, seasonal residents and a relatively small geographic area extending less than 10 miles. In 2008, there were 94,488 persons and 41,256 households living inside this trade area. The residents living in this trade area have a high average household income of $65,400. Although several larger cities, including Daytona Beach, Orlando and Merritt Island are located within an hour s drive, the potential spending of the residents in these 3

4 cities is likely captured by existing businesses in their respective markets. New Smyrna Beach s historic commercial areas have the potential to gain market share from these surrounding cities by expanding its retail mix with marketing. Illustration 4: New Smyrna Beach is located a considerable distance from the surrounding urban centers. Business Mix Although the city of New Smyrna Beach has a variety of urban and suburban retail developments, its residents must drive to other cities for many of their primary goods and services. Tourists are likely disappointed in New Smyrna Beach s limited retail and restaurant offerings. In fact, it s rumored that several Orlando resorts promote New Smyrna s beaches because of its restricted shopping and dining competition. Many of the City s residents, business owners and employees expressed a desire for additional restaurants, grocery stores and specialty retail to be located in the historic downtown and west Canal Street. Presently, the west Canal and the historic Canal Street commercial areas do not have enough goods and services to be a destination shopping district. Instead, most of the Canal businesses rely on purpose-driven trips, where shoppers make a drive to an individual store or restaurant, rather than to the overall commercial district. The Flagler Avenue commercial area has reached a minimal threshold, where many visitors will drive to explore the shopping district as a whole. Flagler s businesses could achieve higher sales with additional select art galleries, retailers, restaurants and hotels that complement its resort and beach setting. 4

5 Small independent retailers and restaurants are one of the hallmarks of New Smyrna Beach. Almost all residents and community groups expressed a strong appreciation for the existing local businesses. In fact, almost no one supported the introduction of leading regional or national chains into any of New Smyrna Beach s historic commercial areas. However, there was interest in attracting personal favorites such as Starbucks, Talbot s, a Pottery Barn, and several other popular brands along Canal Street, as long as they maintained a historical character to their stores. Illustration 5: Many of Canal Street s businesses rely on purpose-driven shopper visits. As a result, the downtown is not functioning as a casual shopping destination with significant cross-shopping between various businesses. In contrast, several small business owners contended that Canal Street s shopping area needed more retailers and restaurants, including leading regional and national brands, in order to achieve a large enough critical mass to become a destination shopping district. Some residents from the west Canal neighborhoods felt strongly that they were underserved for most retail goods and services and stated that they would support additional commercial development in the west area. General Recommendations New Smyrna Beach s three historic commercial districts should attempt to establish individual niches that complement each other, and attempt to better serve the needs and desires of the residents, visitors and employees. As much as possible, the three commercial areas should attempt to retain their existing unique retail mix, while attracting new businesses that service local residents and tourists. The City should seek brands and price points that appeal to New Smyrna Beach s residents, workers and tourists. 5

6 The City should develop an incentive to relocate first level office uses from prime retail corners. Illustration 6: GPG s proposed general merchandising plan for Canal Street and the west Canal neighborhood. Canal Street Recommendations Expand Canal Street s neighborhood services, and return it to its historic role as New Smyrna Beach s primary shopping destination. Continue to promote office and governmental uses along Canal Street (upper building levels preferred). Attract hotels along Canal Street s waterfront. Note, these new hotels should be located within an easy walking distance of New Smyrna Beach s historic shopping districts. Attract new neighborhood retailers such as banks, bakeries, carry-out food, florists, personal service, groceries, mail centers and restaurants along the western end of Canal Street (U.S. 1 Rush). Establish a general merchandise core of apparel, books, home furnishings, jewelry, sporting goods and shoes along the Canal s central area. 6

7 Seek junior anchor stores along Canal Street s central area (Rush to Live Oaks). Promote restaurants and hotels along the waterfront (eastern) edge of Canal Street. Relocate existing governmental offices at the northwest corner of Riverside and Canal. Encourage new appropriately sized and scaled hotels. Flagler Avenue Recommendations: Continue to reinforce Flagler Avenue s niche as a resort and tourist destination. Promote additional unique apparel stores, art galleries, restaurants, specialty gift shops and unique shops. Encourage new appropriately sized and scaled hotels. Illustration 7: The west Canal neighborhood has only a few businesses and could be better served with additional neighborhood stores and restaurants including: bakeries, carry-out food, groceries, a mail center, personal services, and professional offices. West Canal Street Recommendations Attract businesses that reinforce the needs of the local residents such as carryout food, groceries, personal care, restaurants and neighborhood goods and services along Canal (Chestnut to U.S. 1), and along Washington and Julia Streets. Encourage and assist new start up businesses from local residents. Seek day care, medical, real estate and local service businesses. 7

8 Illustration 8: New Smyrna Beach has numerous hard-working independent business owners who provide needed goods and services for the community. Small Business Operations Opening a business in an historic urban area presents several unique challenges usually not found in suburban shopping centers. Many business owners must self-finance their tenant improvements, reducing needed capital for operations, marketing and inventory. New Smyrna Beach is not a centrally managed business district; stores have various hours of operations and overlapping services and the area lacks strong marketing. Value-conscious and time-stressed shoppers often seek managed shopping centers. As a result, operating a business is less predictable along Canal and Flagler than in a wellmanaged shopping center. Some New Smyrna Beach rents and lease terms appear to be unreasonable for the existing levels of sales, often resulting in inexperienced business owners committing to leases that cannot be supported by their business. Recommendations Establish a public-private task force to identify and modify specific business restraints and opportunities for improved public-private cooperation including length of the business approval process, special-use permits for restaurants, employee parking, design standards and approval time-frame. Interview business owners to determine specific issues that are impeding their economic viability. For example, one business owner stated that his business experienced a sharp decline after an adjacent building made a minor change to its façade. Implement reasonable revisions to those impediments as quickly as possible. 8

9 Illustration 9: The Flagler Avenue commercial area offers a casual group of small art galleries, retailers and restaurants that are geared towards tourists. Implement an effective Business Improvement District (BID) or equal organization for marketing and management of the City s business area. BID alternatives could include the U.S. Main Street program and/or expanding funding for existing agencies such as the New Smyrna Downtown Development Authority. Business Improvement & Recruitment GPG was surprised to meet several new retailers that had to wait years to find a suitable store location. In some cases, New Smyrna Beach s supply of suitable commercial space is less than the demand. Although New Smyrna Beach has excellent growth potential and offers a large underserved demographic base, it is not likely that leading regional and national retailers will stumble into New Smyrna Beach and deploy a new store. The City must develop an effective business recruitment plan and target select businesses that will match the region s opportunities with the values and needs of the community. Retailers are also experimenting with pop-up stores in tourist areas. Pop-up stores are located in movable containers or vacant storefronts, and open only during the prime season. Seasonal pop-ups are ideally located in surface parking lots or underutilized public spaces. Seaside, Fla., Miami Beach and New York City have successfully utilized these micro-stores for more than 20 years, with some 150 sf street retailers reporting more than $1 million in annual sales. 9

10 Recommendations Expand the existing public-private recruitment strategy to better identify potential key businesses and attract them to New Smyrna Beach. Implement a pilot program to encourage new retail and restaurant development along Canal Street, west Canal and Flagler Avenue. This program could allow for a limited number of new businesses to open in each area under a temporary relaxation of existing entitlement regulations such as parking and permit fees. Naples, Fla. implemented such an incentive-based program 15 years ago to jumpstart its stagnant downtown. Note: This program should not relax building design standards. Attempt to attract leading anchor retailers and restaurants into or adjacent to New Smyrna Beach s historic business districts. These anchors could include: apparel, books, groceries, home furnishings, neighborhood services, sporting goods, shoes and toys. Implement a business recruitment strategy to identify and recruit leading local, regional and national businesses to New Smyrna Beach Create a centralized database to list available New Smyrna Beach properties; include properties, sizes, condition, photographs, architectural drawings, lease terms, broker and estimated required improvements to meet appropriate building codes. Continue to sponsor the New Smyrna Downtown Development Authority s programs including the small business resources, special events seminars and business recruitment efforts. Consider implementing a For Rent contact number and website that will direct prospective businesses to the appropriate real estate broker or property owner (this plan was successfully implemented by the West Palm Beach, Fla. Downtown Development Authority (DDA)). Implement a plan for temporary pop-up stores in under-utilized locations. Parking Parking was often mentioned as one of the primary issues limiting new businesses downtown on both Canal Street and Flagler Avenue. However, the required parking for Canal and Flagler businesses is reduced in comparison to other commercial areas. On a whole, it appears that downtown New Smyrna Beach has an adequate amount of parking, given its existing commercial space. The existing parking management policies may need to be measured and fine-tuned to better respond to present shopper trends. For example, 2-hour free parking is presently allowed along Canal Street even though the entire downtown can be shopped in less than an hour. 10

11 Illustration 10: Canal Street, Flagler Avenue and west Canal have more than adequate parking to meet existing demands. Shown above is a private parking lot located on the south side of Canal Street. Recommendations Accurately measure the existing needs for parking along Canal Street and Flagler Avenue to determine actual shortages. Adjust parking standards to meet real demands. Assemble locations for potential future parking demands. Measure and record parking patterns and trends including: length of time, violations, and use of existing decks. Consider parking meters in prime spots, and then measure response to shopping habits. Consider establishing a Business Improvement District (or equal) to collect revenues to be spent on specific marketing and management efforts, to improve downtown sales and for future parking lots or decks. 11

12 Illustration 11: New Smyrna Beach has numerous well-designed historical commercial buildings that cannot be duplicated in modern shopping centers and that contribute to its appeal. Building Facades Historic downtown New Smyrna Beach has a variety of pre- and post-war buildings that combine to create a desirable urban shopping district. Such buildings are not only interesting, but help to make the commercial district unique and therefore competitive with modern shopping malls and future lifestyle centers. Recommendations Continue the existing policy of encouraging quality historic restorations to downtown buildings. Continue the use of creative modern new buildings, with the use of high quality materials and design. Encourage updates of signage, lighting and windows to promote more sustainable commerce. 12

13 Illustration 12: The Little Drug Co. is a favorite destination for many in the New Smyrna community. The pharmacy offers a cafeteria and anchors the Canal Street business area. Performance Measurements Given the region s weak economy, New Smyrna Beach will likely face challenges to maintain the viability of its walkable commercial districts. Declining sales figures reported to GPG during the May workshop indicate that new actions must be attempted by the public and private sectors. Recent store closings and present vacancies represent an opportunity for new businesses to locate along Canal and Flagler. An organized analysis with a planning management strategy, if implemented, could provide for a more consistent and speedy improvement to New Smyrna Beach s historic downtown area. Recommendations Begin an accurate program to measure and record shopper and economic trends in the downtown, including: vehicular and pedestrian circulation, retail sales, employment, rents and consumer habits. Consider a detailed analysis of the downtown s hotel, office, residential, restaurant and retail market potential. Based upon realistic market options, consider selecting a desirable commercial segment to specialize in: restaurants, apparel, home furnishings, entertainment, neighborhood goods and services, etc. Seek out a database of successful historic building adaptations implemented by leading retailers and restaurants. Collect data from other historic communities that have successfully implemented historic re-use of commercial buildings. 13

14 Commercial Demand GPG estimates that presently New Smyrna Beach has the potential to support up to an additional 895,000 square feet of restaurant and retail growth. This opportunity reflects New Smyrna Beach s substantial residential, employment and tourism demographics, combined with its quality historical character. Note that this figure is higher than RCLCo s estimate that only included demand generated from the City itself. GPG estimates that New Smyrna Beach s additional supportable retail includes: 2009 New Smyrna Beach Additional Supportable Retail Apparel & Shoes $30 million 100,000 sf Stores Electronics $23 million 55,000 sf 3-5 Stores Department Stores $34 million 135,000 sf 1-2 Stores General Merchandise $80 million 280,000 sf Stores Grocery Stores $35 million 70,000 sf 2-3 Stores Hardware $10 million 44,000 sf 2-3 Stores Home Furnishings $2 million 10,000 sf 2-3 Stores Full Serv. Restaurants $8 million -20,000 sf 3-6 Restaurants Limited Serv. Rest. $52 million 140,000 sf Restaurants Totals $274 million 814,000 sf Stores This additional commercial development could generate up to $274 million in annual retail and restaurant sales in 2008, representing captured consumer spending that is presently leaking outside of New Smyrna Beach. Expanding New Smyrna Beach s market share will require numerous management and physical improvements to be implemented by both the private and public sectors. Tourism Expenditures Shopping is the most favored holiday-time activity of travelers. While on vacation, 77% of U.S. tourists and 89% of foreign visitors go shopping. More than half of traveling U.S. adults named shopping as their primary or secondary reason for travel. Clothing and shoes are the leading items purchased by tourists in the United States. One-third of the average tourist budget is spent shopping, with an average of $333 spent on shopping during each trip taken. Tourists shop for several reasons, including authenticity, boredom, functional needs, to extend the travel experience and for gifts. For example, General Growth Properties, the largest U.S. mall developer, reported that 31% of their 2001 total annual sales revenues were from tourists. New Smyrna Beach has an opportunity to increase tourist spending by expanding its marketing and store offerings to include leading brands that its visitors shop for at home. While this may seem counterintuitive, vacationers universally spend more time shopping and dining than any other activity, including cultural events, visiting historic sites, museums and parks and attending sporting activities. Tourist shopping behavior is different than when at home; they tend to spend more money and are seeking the highest quality possible. Both unique items and familiar name brands are preferred by tourists. Purchasing name brands also makes gift-buying less risky, as the item can easily be returned at home. This relatively recent trend is a 14

15 result of shopping becoming a new form of entertainment and a way to spend time with family and friends. In addition, most households are too busy to shop while at home and prefer the more relaxed vacation setting. Research indicates that there is a direct relationship between visitor satisfaction and their spending level. Tourist Shopping Illustration 13: Shopping is the most popular activity of U.S. and foreign tourists in the U.S. Recommendations Expand the existing marketing campaigns to promote New Smyrna Beach as a shopping and dining destination for tourist groups both prior to and after arriving in the region. Assist small independent businesses in orienting their merchandise and services for tourists, as well as their existing customer base. Identify the purchasing preferences of New Smyrna Beach s regional, national and international tourists, including brands, stores, price-point, and categories. Cross-reference preferred visitor brands with stores desired by local residents to determine an ideal list of businesses that have the broadest possible appeal. Implement a business recruitment strategy to approach preferred retailers and restaurants and to coordinate with leasing opportunities. Feature leading national brands, retailers and restaurants on marketing materials and promotional efforts. 15

16 Business Improvement District New Smyrna Beach s small retailers and restaurants individually lack the resources to compete with major shopping centers and districts. Just having a unique store selling desired goods and services is not enough for the business owner to earn a reasonable living. With the exception of Flagler Avenue, most of New Smyrna Beach is not functioning as a cohesive shopping district. In spite of all of New Smyrna Beach s vehicular and pedestrian traffic, there is little actual cross-shopping or impulse buying occurring. Many of New Smyrna Beach s businesses depend on single-purpose visits, with the bulk of their customers coming to visit a specific store or restaurant. Numerous veteran store owners reported that many of their first-time visitors had just discovered their store, even though they may have walked past it for years. New Smyrna Beach s merchants and property owners also need an organized advocate to promote the best interests of the business district to the community and region. Important disputes over signage rights, the entitlement process, parking, special events, maintenance and security need to be addressed carefully, with the businesses point of view effectively represented. Illustration 14: New Smyrna Outfitters offers fishing equipment and active wear, and has an effective storefront that highlights its specialiity niche. 16

17 A Business Improvement District (BID) is an organization of property owners in a commercial district who tax themselves to raise money for neighborhood improvement (Heather MacDonald, Civic Bulletin 5/1996). BIDs have a clear appeal to their economic stakeholders as devices for controlling and enhancing areas in which they have a common economic interest by setting and implementing their own priorities (Laurence O. Houston, APA). In essence, those who benefit pay all the costs; those who do not benefit do not pay. Property assessments are by far the major source of BID revenues. The cost per square foot of commercial space averages cents per square foot, while costs expressed through a percentage of paid property taxes tend to hover around 5-6%. The key to BID s accomplishments lies in their dissimilarity to big-city governments. They operate without civil service rules and red tape. They are a fresh start it is easier for them to discard old, failed methods for novel approaches. They may be able to operate outside the rigid rules and procedures that stand as an obstacle to more effective governance in older municipalities. They can hire and fire employees based on performance, not civil service status or other government mandates (MacDonald). Recommendations More than ever, New Smyrna Beach needs to adopt the proven management and marketing techniques of leading shopping districts in order to remain competitive, vital and an amenity for the community. This is not to say that New Smyrna Beach should become transformed into a shopping mall. In fact, just the opposite is true: the City s unique historical character and numerous independent businesses will prove to be a competitive advantage over newer lifestyle centers, but only if modern marketing and management practices can be implemented (see GPG s recommendations on page 10 and the following recommendations on pages 18-19). BIDs have been proven to effectively improve the viability of urban shopping districts. BIDs are funded by special assessments on the property located within their improvement boundary. These funds are placed into separate accounts and controlled by a Board made up of property and business owners located within the BID. These funds can be utilized for specific management and marketing efforts as deemed appropriate by the BID Board. Typically, these funds are utilized to implement the following: Advertising campaigns for individual retailers and the district as a whole. Lighting improvements for the streetscape and individual businesses signage systems. Improved maintenance and security. Business improvement seminars. Metrics and measurements of pedestrian counts, sales figures and shopper surveys. Business retention and recruitment through place making efforts. 17

18 Grant applications. Community consensus-building and representation. While it may be difficult to implement, a professionally managed BID or equal organization is necessary for New Smyrna Beach to compete with modern shopping areas. This study finds that New Smyrna Beach has significant potential to increase market share and sales with this management tool. The importance of an effective BID type of organization cannot be over-emphasized. Marketing New Smyrna Beach s stakeholders and property and business owners agree that the City needs significant advertising and marketing to compete with the region s other commercial districts. Given the priority that tourists place on shopping for known brands and stores, New Smyrna Beach should implement a balanced marketing strategy that includes the leading retailers. Promote New Smyrna Beach s retail and dining district to convention and tourist visitors prior to and during their trip. Develop cross-promotion campaigns with businesses, such as discounts during special events. Include national retailers and restaurants in marketing materials. Measure marketing efforts and focus resources on the most effective methods. Wayfinding Signage All three commercial areas are difficult to find from Highway 44. An effective wayfinding signage system, beginning from I-95 to the various shops will significantly improve shopper traffic and sales. Illustration 15: Signage is an important tool for retailers and restaurants. Above, left is a sidewalk sign for a New Smyrna Beach business; above, right is a street sign in Winter Park, Florida. 18

19 Recommendations Side-street businesses (both name and logo) should be illustrated on polemounted signboards located along Canal and Flagler. Install pairs of street-name signs at each intersection; label the cross-street with at least two street-name signs to improve pedestrian and vehicular orientation. STORE BUSINESS PRACTICES This study concludes that many of New Smyrna Beach s retailers and restaurants could increase sales by implementing proven modern store planning and merchandising practices. Urban shopping districts are perceived (unfairly) by shoppers to be more expensive and to have less selection than average shopping centers. While most of the stores offer attractive exteriors, signage and interesting merchandise, they often fall short of meeting the desires and needs of today s busy shoppers. New Smyrna Beach has four primary shopper groups: local, regional, worker and tourist. While each of these groups has specific shopping habits and desires, the four general practices that follow should be considered by individual business owners. Specialty Niche Focus It is difficult for small businesses to offer a wide range of goods and services with the appropriate depth of merchandise. Instead, small businesses can focus on a specialty niche product or service, in a shop that carries a full selection of the good or service. Such a selection can allow for the business to be competitive with large-format discounters that typically have limited selections. Recommendations Determine a specialty retail product or service category that has a reasonable appeal and demand such as collectibles, children s books, handmade cosmetics, shoes, etc. Design the business branding, name, signage, colors, fixtures, music, marketing and staff training to reinforce the brand; give the store the look and feel of the niche culture and characteristics appropriate to the product or service category. Update store name to match the business service. Maintain an extensive depth of merchandise in the selected niche; for example, a full selection of styles, colors and sizes, but in a specific category. Hold seminars and educational sessions on the store s product or service; make the store the go-to place for a particular product or service. Extended Hours Research indicates that more than 70% of all U.S retail purchases are made after 5:30 p.m. and on Sundays. Most of New Smyrna Beach s retailers and businesses are closed in the evening during these times and during the popular Saturday farmer s market. Closing early reduces the stores market share, while also creating a lifeless streetscape in the evening. The reduced sales revenue limits the businesses ability to hold extended hours. In other words: The stores cannot maintain evening hours because they are not open in the evening. 19

20 Time is the new luxury. Modern households are often single parents, two-income families or just too busy to shop during the daytime. Regular extended hours are a major reason why many of New Smyrna Beach s residents and even tourists shop in the surrounding malls and large-format retailers. Recommendations Extend weekday business hours until 7:00 p.m. minimum and maintain regular Sunday hours. Promote the extended hours with a marketing campaign; note that it will take more than one year for shoppers to adjust to the extended hours. Encourage closed stores to maintain illuminated window displays and signage until 11:00 p.m. to animate the street and promote window shopping. Consider special sub-districts or groups of businesses that offer extended hours if late hours prove impractical for a majority of New Smyrna. Attract leading retailers and restaurants that maintain extended hours to New Smyrna, to better serve the needs of the surrounding neighborhoods and contribute to a more active evening streetscape. Store Maintenance There is a direct correlation between the goods and services sold and the quality of the store s maintenance. A dirty, cheap-looking store does not suggest a good value in fact, it suggests just the opposite. Recommendations Maintain clean stores, including all surfaces, windows and fixtures; clean display windows weekly and the front door daily. Keep the front door and storefront freshly painted and clean; front doors often need painting monthly -- END of REPORT -- 20

21 New Smyrna Beach, FL Site Map

22 Demographic and Income Profile Prepared by Gibbs Planning Group New Smyrna Beach, FL Site Type: Polygon Summary Population 78,212 94, ,678 Households 34,146 41,265 45,364 Families 23,264 27,392 29,561 Average Household Size Owner Occupied HUs 28,439 34,683 37,794 Renter Occupied HUs 5,707 6,582 7,570 Median Age Trends: Annual Rate Area 0 National Population 1.87% 0.00% 1.23% Households 1.91% 0.00% 1.26% Families 1.54% 0.00% 1.05% Owner HHs 1.73% 0.00% 1.07% Median Household Income 2.58% 0.00% 3.19% Households by Income Number Percent Number Percent Number Percent < $15,000 4, % 4, % 3, % $15,000 - $24,999 5, % 4, % 3, % $25,000 - $34,999 5, % 4, % 4, % $35,000 - $49,999 6, % 7, % 6, % $50,000 - $74,999 6, % 9, % 11, % $75,000 - $99,999 2, % 4, % 6, % $100,000 - $149,999 1, % 3, % 5, % $150,000 - $199, % 1, % 1, % $200, % 1, % 2, % Median Household Income $38,203 $48,876 $55,514 Average Household Income $50,174 $65,404 $76,991 Per Capita Income $21,959 $28,768 $33, Population by Age Number Percent Number Percent Number Percent 0-4 3, % 3, % 3, % 5-9 3, % 3, % 4, % , % 4, % 4, % , % 4, % 4, % , % 3, % 3, % , % 7, % 8, % , % 9, % 9, % , % 14, % 14, % , % 16, % 19, % , % 13, % 16, % , % 9, % 10, % 85+ 1, % 3, % 4, % Race and Ethnicity Number Percent Number Percent Number Percent White Alone 74, % 87, % 94, % Black Alone 2, % 3, % 4, % American Indian Alone % % % Asian Alone % % 1, % Pacific Islander Alone % % % Some Other Race Alone % % % Two or More Races % 1, % 1, % Hispanic Origin (Any Race) 1, % 2, % 4, % Data Note: Income is expressed in current dollars. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and ESRI

23 emographic and Income Profile Prepared by Gibbs Planning Group New Smyrna Beach, FL Site Type: Polygon 3.5% Trends Area Annual Rate 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% U.S. 0.0% Population Households Families Owner HHs Median HH Income 25.0% 20.0% Population by Age Percent 15.0% 10.0% 5.0% 0.0% Age Groups 2008 Household Income 2008 Population by Race 9.0% 2.6% 3.3% 10.0% 11.7% 100% 90% 80% 11.8% 70% 11.7% 60% 50% 22.3% 17.6% 40% 30% 20% 10% < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ 0% White Alone Black Alone American Indian Alone Asian Alone Pacific Islander Alone Some Other Race Alone 2008 Percent Hispanic Origin 3.0% Two or More Races Source: ESRI forecasts for 2008 and ESRI

24 Retail MarketPlace Profile Prepared by Gibbs Planning Group New Smyrna Beach, FL Site Type: Polygon Summary Demographics 2008 Population 94, Households 41, Median Disposable Income $40, Per Capita Income $28,768 Industry Summary Demand Supply Retail Gap Leakage/Surplus Number of (Retail Potential) (Retail Sales) (Demand - Supply) Factor Businesses Total Retail Trade and Food & Drink (NAICS 44-45, 722) $1,078,791,865 $655,126,178 $423,665, Total Retail Trade (NAICS 44-45) $929,262,483 $556,315,390 $372,947, Total Food & Drink (NAICS 722) $149,529,382 $98,810,788 $50,718, Demand Supply Leakage/Surplus Number of Industry Group (Retail Potential) (Retail Sales) Retail Gap Factor Businesses Motor Vehicle & Parts Dealers (NAICS 441) $235,971,954 $146,047,064 $89,924, Automobile Dealers (NAICS 4411) $213,411,736 $102,339,817 $111,071, Other Motor Vehicle Dealers (NAICS 4412) $8,039,177 $38,207,948 -$30,168, Auto Parts, Accessories, and Tire Stores (NAICS 4413) $14,521,041 $5,499,299 $9,021, Furniture & Home Furnishings Stores (NAICS 442) $38,212,246 $36,241,570 $1,970, Furniture Stores (NAICS 4421) $23,307,678 $19,649,070 $3,658, Home Furnishings Stores (NAICS 4422) $14,904,568 $16,592,500 -$1,687, Electronics & Appliance Stores (NAICS 443/NAICS 4431) $31,778,244 $8,442,746 $23,335, Bldg Materials, Garden Equip. & Supply Stores (NAICS 444) $39,741,070 $29,481,259 $10,259, Building Material and Supplies Dealers (NAICS 4441) $38,312,511 $28,826,912 $9,485, Lawn and Garden Equipment and Supplies Stores (NAICS 4442) $1,428,559 $654,347 $774, Food & Beverage Stores (NAICS 445) $174,159,676 $138,466,562 $35,693, Grocery Stores (NAICS 4451) $168,047,836 $132,852,354 $35,195, Specialty Food Stores (NAICS 4452) $2,088,324 $1,780,197 $308, Beer, Wine, and Liquor Stores (NAICS 4453) $4,023,516 $3,834,011 $189, Health & Personal Care Stores (NAICS 446/NAICS 4461) $36,698,698 $25,837,716 $10,860, Gasoline Stations (NAICS 447/NAICS 4471) $131,219,722 $78,661,535 $52,558, Clothing and Clothing Accessories Stores (NAICS 448) $45,460,211 $15,756,794 $29,703, Clothing Stores (NAICS 4481) $36,254,016 $11,902,068 $24,351, Shoe Stores (NAICS 4482) $5,845,467 $1,548,051 $4,297, Jewelry, Luggage, and Leather Goods Stores (NAICS 4483) $3,360,728 $2,306,675 $1,054, Sporting Goods, Hobby, Book, and Music Stores (NAICS 451) $12,249,955 $4,986,592 $7,263, Sporting Goods/Hobby/Musical Instrument Stores (NAICS 4511) $6,082,609 $4,387,685 $1,694, Book, Periodical, and Music Stores (NAICS 4512) $6,167,346 $598,907 $5,568, Data Note: Supply (retail sales) estimates sales to consumers by establishments. Sales to businesses are excluded. Demand (retail potential) estimates the expected amount spent by consumers at retail establishments. Supply and demand estimates are in current dollars. The Leakage/Surplus Factor presents a snapshot of retail opportunity. This is a measure of the relationship between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents leakage of retail opportunity outside the trade area. A negative value represents a surplus of retail sales, a market where customers are drawn in from outside the trade area. The Retail Gap represents the difference between Retail Potential and Retail Sales. The North American Industry Classification System (NAICS) is used to classify businesses by their primary type of economic activity. Retail establishments are classified into 27 industry groups in the Retail Trade sector, as well as four industry groups within the Food Services & Drinking Establishments subsector Source: ESRI and info USA ESRI

25 Retail MarketPlace Profile Prepared by Gibbs Planning Group New Smyrna Beach, FL Site Type: Polygon Demand Supply Leakage/Surplus Number of Industry Group (Retail Potential) (Retail Sales) Retail Gap Factor Businesses General Merchandise Stores (NAICS 452) $137,890,862 $57,849,275 $80,041, Department Stores Excluding Leased Depts. (NAICS 4521) $56,188,485 $21,880,227 $34,308, Other General Merchandise Stores (NAICS 4529) $81,702,377 $35,969,048 $45,733, Miscellaneous Store Retailers (NAICS 453) $15,618,435 $10,926,618 $4,691, Florists (NAICS 4531) $2,534,716 $1,135,231 $1,399, Office Supplies, Stationery, and Gift Stores (NAICS 4532) $6,666,297 $2,497,391 $4,168, Used Merchandise Stores (NAICS 4533) $1,414,908 $2,867,387 -$1,452, Other Miscellaneous Store Retailers (NAICS 4539) $5,002,514 $4,426,609 $575, Nonstore Retailers (NAICS 454) $30,261,410 $3,617,659 $26,643, Electronic Shopping and Mail-Order Houses (NAICS 4541) $21,381,078 $0 $21,381, Vending Machine Operators (NAICS 4542) $879,276 $2,244,949 -$1,365, Direct Selling Establishments (NAICS 4543) $8,001,056 $1,372,710 $6,628, Food Services & Drinking Places (NAICS 722) $149,529,382 $98,810,788 $50,718, Full-Service Restaurants (NAICS 7221) $52,172,223 $60,555,066 -$8,382, Limited-Service Eating Places (NAICS 7222) $78,937,454 $27,118,305 $51,819, Special Food Services (NAICS 7223) $7,750,992 $3,977,530 $3,773, Drinking Places - Alcoholic Beverages (NAICS 7224) $10,668,713 $7,159,887 $3,508, Leakage/Surplus Factor by Industry Subsector Motor Vehicle & Parts Dealers Furniture & Home Furnishings Stores Electronics & Appliance Stores Bldg Materials, Garden Equip. & Supply Stores Food & Beverage Stores NAICS Industry Subsector Health & Personal Care Stores Gasoline Stations Clothing and Clothing Accessories Stores Sporting Goods, Hobby, Book, and Music Stores General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers Food Services & Drinking Places <--Surplus--Leakage--> Source: ESRI and info USA ESRI

26 Retail MarketPlace Profile Prepared by Gibbs Planning Group New Smyrna Beach, FL Site Type: Polygon Leakage/Surplus Factor by Industry Group Automobile Dealers Other Motor Vehicle Dealers Auto Parts, Accessories, and Tire Stores Furniture Stores Home Furnishings Stores Electronics & Appliance Stores Building Material and Supplies Dealers Lawn and Garden Equipment and Supplies Stores Grocery Stores Specialty Food Stores Beer, Wine, and Liquor Stores Health & Personal Care Stores Gasoline Stations Clothing Stores Shoe Stores Jewelry, Luggage, and Leather Goods Stores Sporting Goods/Hobby/Musical Instrument Stores NAICS Industry Group Book, Periodical, and Music Stores Department Stores (Excluding Leased Depts.) Other General Merchandise Stores Florists Office Supplies, Stationery, and Gift Stores Used Merchandise Stores Other Miscellaneous Store Retailers Electronic Shopping and Mail-Order Houses Vending Machine Operators Direct Selling Establishments Full-Service Restaurants Limited-Service Eating Places Special Food Services Drinking Places (Alcoholic Beverages) <--Surplus--Leakage--> Source: ESRI and info USA ESRI