Generation of retail trade area maps with demographic, socioeconomic and psychographic profiles (consumer lifestyle and purchasing behaviors)
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1 Office of Economic Development 211 South Williams Street Royal Oak, MI The Retail Coach Contract Extension September 23, 2015 The Honorable Mayor Ellison and Members of the City Commission: On March 18, 2013, the city commission created the downtown task force, whose membership consisted of community leaders, property owners, and other interested groups. As part of its final report, the task force recommended that the city enter into a contract with a third party firm to create a retail market analysis and development plan. On September 8 th, 2014, The Retail Coach was unanimously chosen by the city commission to implement this plan. A premier national retail recruitment and development consulting firm with over 28 years of experience and expertise, The Retail Coach has completed the following tasks during the course of the last year: Generation of retail trade area maps with demographic, socioeconomic and psychographic profiles (consumer lifestyle and purchasing behaviors) Calculation of a retail gap/opportunity analysis showing the retail dollars flowing in and flowing out of Royal Oak Creation of an interactive online retail dashboard for Royal Oak Analysis of bar/restaurant impact in the central business district Identification of two Royal Oak trade areas for retail recruitment emphasis (downtown and the Woodward corridor) and creation of site profiles for business opportunities in those location Recruitment of national retailers and retail developers with customized marketing packages focusing specific site selection criteria Representation of Royal Oak at national retail conferences Recruitment of actual retailers began on March 11, 2015, and to date, five retailers have requested more information about the city and available sites. Retail recruitment takes time, and under the terms of its proposed contract extension (Attachment 1), The Retail Coach will spend most of the next year focused upon retail recruitment and representation of the city at national trade shows and conferences. The contract extension will also ensure that all data generated for the city remains up-to-date. The annual budget allocated $70,000 for this project, and The Retail Coach s initial contract was considerably less at $48,000. It has proposed $24,000 for a one-year contract extension, which was allocated in this year s budget, nearly all in part, from last year s savings.
2 We request and recommend the following motion be adopted: Be it Resolved, the Royal Oak City Commission hereby approves the 12-month contract extension with The Retail Coach for services indicated in its September 11, 2015 Retail Economic Development Plan. Respectfully submitted, Todd E. Fenton Economic Development Manager Approved, Donald E. Johnson Ciry Manager 1 Attachment
3 RETAIL ECONOMIC DEVELOPMENT PLAN 12- MONTH EXTENSION Royal Oak, Michigan September 11, 2015
4 Attachment 1 DEMAND ASSESSMENT COMMUNITY ANALYTICS CONSUMER ANALYTICS Extensive research will be performed to provide a clear picture of the factors shaping the retail environment in Royal Oak including demographic, socioeconomic and psychographic profiles; the workplace population; and consumer spending patterns. An assessment of Royal Oak s primary retail corridors will reveal new development and redevelopment opportunities. The findings of this research combined with a Retail Gap/Opportunity Analysis calculating estimated potential sales (demand) will support the development of specific recommendations for positioning Royal Oak to achieve its retail expansion and development goals. METHODOLOGY Demographic Profile (2015/2016 Update) We produce comprehensive summary demographic profile and trend reports encompassing the Retail Trade Areas (primary and secondary) and the Royal Oak community. The profiles include the following characteristics: Population and Population Growth Population Trends Average Annual Population Growth Ethnicity Income Age Households and Household Growth Educational Attainment Retail Gap/Opportunity Analysis (2015/2016 Update) We calculate estimated potential retail sales (demand) for the Retail Trade Area and compare these figures to estimated actual sales figures (supply) to estimate retail dollars coming in or flowing out of Royal Oak. We identify retail sales surpluses and/or leakages for 75+ different retail sectors. This distinguishes the retail categories that have the highest propensity for success in Royal Oak and quantifies their retail potential. We develop and provide summary tables and graphs of each retail sector illustrating potential sales versus estimated actual sales.
5 RETAIL STRATEGIES RETAILER MATCHING RETAIL EXPANSION POSITIONING COMMUNITY MARKETING With unparalleled access to national and regional retailers, we cross- reference preferred customer and site selection criteria with the findings from Royal Oak s area market analysis and Retail Gap/Opportunity Analysis. Customized community marketing tools and site profiles are developed to position for targeted recruitment of the retailers who are most likely to be successful in Royal Oak. METHODOLOGY Retailer Matching (2015/2016 Update) We will identify regional and national retailers whose essential location factors match the sites identified in Royal Oak. We provide a preliminary list of targeted retailers based on the matching of their site selection criteria to our findings from the area market analysis, competition assessment, Retail Trade Area determination, demographic and psychographic profiles, and Retail Gap/Opportunity Analysis. Retail Expansion Positioning We use the market insight gathered through our research in Royal Oak to establish the strongest position for successful retail recruitment. The first and most critical step in reaching out to targeted retailers is providing the information corporate real estate directors and site selectors need to make initial decisions about locating in Royal Oak. We produce a comprehensive Retail Feasibility Package that includes: Community Overview Location Map Retail Trade Area Map Retail Trade Area Demographic Profile Summary Existing Community Retailers Retail Gap/Opportunity Analysis Summary Table Retail Trade Area Psychographic Profile Retail Trade Area Demographic Profile Community Demographic Profile The content of the Royal Oak Retail Feasibility Package will be used to develop an engaging campaign. The customized will include a link to the community portal at The link may also be placed on Royal Oak s City and economic development websites. We provide a Retailer Recruitment Status Report that includes each retailer s complete contact information and any comments resulting from our outreach activities. The Retail Coach, L.L.C. 2
6 DEVELOPER STRATEGIES DEVELOPER IDENTIFICATION & MARKETING Using our access to national and regional developers, we determine the development opportunities based on Royal Oak sarea market analysis. Customized developer marketing materials are created to position Royal Oak for success in a targeted recruitment of the developers. METHODOLOGY Developer Identification (2015/2016 Update) The Retail Coach will identify 40 retail developers active in the region in order to present Royal Oak s development opportunities to them for consideration. The Retail Coach will create a Developer s Marketing Package that will focus on developer site selection criterion including, but not limited to, the following: Community Dynamics in the Area Surrounding the Properties Retail Trade Area Demographic Trends Aerial Photographs Previous Site- Specific Studies, if Any Traffic Counts Site- Line Visibility From Major and Secondary Traffic Arteries Ingress/Egress for Primary and Secondary Traffic Arteries Median Cuts Traffic Signal Existence or Possibilities Site Characteristics and Topography Appropriate Zoning Area Retail Residential Clustering and Support Developer Recruitment Positioning The content of the Developer s Marketing Package will be used to create an engaging campaign. The customized will include a link to Royal Oak s landing page on the community portal at We will send the Developer s Marketing Package eblast to 40 targeted developers and follow- up with personal telephone calls during the recruitment phase. We provide a Developer Recruitment Status Report that includes each developer s complete contact information and any comments resulting from our outreach activities. The Retail Coach, L.L.C. 3
7 SITE PROFILES The Retail Coach will update and maintain current Retail Site Profiles and Fliers. The Retail will develop ten additional Site Profiles and Fliers. WEB PRESENCE Interactive Mapping and Retail 360 Dashboard The Retail Coach will update, maintain, and continue to host the Royal Oak Interactive Mapping Application and Retail 360 Dashboard for the entire 12 months. TRADE SHOW REPRESENTATION The Retail Coach will represent Royal Oak at upcoming industry trade shows. The Retail Coach, L.L.C. 4
8 PROJECT TIMELINE & PRICING The length of this project is for 12 months. Project Fees: The total fee for completion of this work is $24,000 payable quarterly: Project fees are payable within 15 days after receipt of the invoice. Should Royal Oak request a special assignment or additional work not specifically referenced in the contract, we will prepare a written authorization to be signed by Royal Oak in advance of commencing any additional work. Royal Oak Responsibilities: Royal Oak will designate a project liaison who will serve as The Retail Coach s primary contact during the project. Royal Oak will provide information relevant to the project such as prior retail studies, current traffic count data, surveys, maps, aerials, infrastructure plans and any other plans that may influence the development of the retail strategy. Royal Oak will provide City or organization logo and contact information as it should appear on all produced reports and materials to The Retail Coach upon execution of the agreement. The Retail Coach, L.L.C. 5
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