Commercial Market Analysis. Concession Street BIA

Commercial Market Analysis Concession Street BIA April 2010 URBAN MARKETING COLLABORATIVE a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: umc@jcwg.com 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254

Commercial Market Analysis Concession Street BIA Table of Contents Executive Summary... 1 1.0 Introduction... 4 1.1 Background and Project Information... 4 2.0 Report Format... 6 4.0 Concession Street Trade Area Review... 9 4.1 Trade Area Population Characteristics... 11 4.2 Household Expenditure Analysis... 15 5.0 Retail Commercial Audit... 18 5.1 Market Positioning... 20 5.2 Façade Improvements and Overall Improvements... 21 6.0 Strengths, Weaknesses, Opportunities, and Threats... 29 7.0 Vision and Action Item Review... 35 Appendix Demographic and Household Expenditure Maps... 53 URBAN MARKETING COLLABORATIVE a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: umc@jcwg.com 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254

Executive Summary The consulting firm (UMC) was retained by the City of Hamilton in 2002/2003 to undertake a commercial market study of five business districts in the City: Concession Street BIA, Westdale Village BIA, Downtown Dundas BIA, Ottawa Street BIA, and Downtown Waterdown BIA. As a benchmarking exercise and to provide future direction to these five BIAs, the City of Hamilton has invited UMC to return to update these commercial market studies. This report addresses issues specific to Concession Street BIA. Key Evaluation Metrics The following are key evaluation metrics used to assess the changes for Concession Street BIA. They include both quantitative and qualitative measures. Measure 2002/2003 2009 Retail Mix Retail Merchandise 20% 13% Convenience Goods 11% 19% Food Service 11% 9% Services 31% 35% Vacancy 14% 10% The largest category is services including both personal (e.g., hair salons, dry cleaners) and professional services (e.g., medical services, lawyers). Since 2002/2003, the proportion of services has increased. The convenience goods category has also increased significantly. New grocery stores, specialty food stores, and pharmacies have affected this change. In addition, there is a noticeable shift away from retail merchandise. While still accounting for 13% of the total square footage, the fact that the retail district is very large (approximately 270,000 sq. ft.) means that the retail merchandise still amounts to over 35,000 sq. ft. Of note, the vacancy rate has decreased significantly from 2002/2003 to 2009. It now stands at slightly less than 10%. It is important to note that the study was conducted during a severe downturn in the global economy. Also of note, the quality of many of the businesses has improved dramatically. The comparison of previous businesses and 2009 businesses along Concession Street BIA illustrates this fact. 1

Measure Time Period Value of building permits commercial (excl. signage) 2001 2009 YTD $4,398,128 CPIG façade improvement total Investment 2002 2008 YTD $204,822 Number of participating buildings CPIG 2002 2008 YTD 12 buildings Parking revenue 2004 2008 20% increase Concession Street BIA members have been one of the top users of the City s Commercial Property Improvement Grant CPIG (façade improvement program). A review of the commercial building permits for Concession Street BIA reveal that property owners have continued to invest significant amounts in their properties. The before and after images of the buildings reveal that property owners see value in updating their properties and the business sales and rents are commensurate with the renovations. Clearly, there is a strong return on investment for investing in their properties. Of note, approximately half of the building permit value is for the recent Shoppers Drug Mart. As the renovations and redevelopment of the hospital along Concession Street continues, there will be opportunities for new businesses and redevelopment of properties as well. This will be an opportune time to improve the overall street conditions (infrastructure, streetscaping, and beautification). The new Official Plan and Zoning By-law establishes the core area of the BIA as a pedestrian predominant street that will help guide its future development. The BIA has a renewed focus and determination to accomplish tasks. In the recent past, there have been organizational challenges that have pre-occupied some of the longer-term planning initiatives, but this stage is past and they are committed to setting strategic goals and developing the tactics to accomplish them. Vision Many of the key findings that guided the results of the initial market assessment in 2002/2003 remain true in 2009. The function will be a neighbourhood, main-street shopping district for local and regional residents combined with a specialty regional function focused on health care services, specialty food, and unique goods and services. The vision for Concession Street BIA includes: > Neighbourhood or family of individually owned and operated businesses and organizations that provide personal value; > Diversity businesses, colours, regional visitation, multi-generational. The overall theme is Where Neighbours Meet. It is debatable whether this is still relevant for Concession Street BIA. The BIA will work with these ideas to develop a new theme for the BIA that reflects the stronger identity. 2

Action Plan Items A review of the action plan items from 2002/2003 indicated that many have been accomplished. The future direction for the BIA is to: > Renew committee work by each one setting strategic goals, tactics to accomplish the goals, and reporting structure to the main board meetings; > Continue excellent communication work and welcoming programs (e.g., brochure, interaction in the businesses, and wine and cheese events); > Work towards improved partnerships with the hospital; > Increase redevelopment opportunities through mixed-use developments and possible parking structures; > Develop design guidelines, physical improvement programs, parking, and safety programs; > Develop ways to continue façade improvement programs through increased coordination with both the City and the property owners; > Use marketing messages to showcase the family of businesses on the street, their unique personalities, and the commitment to personal service; > Continue to work with HABIA and the City on programs that are beneficial to the BIA. 3

1.0 Introduction The consulting firm (UMC) was retained by the City of Hamilton in 2002/2003 to undertake a commercial market study of five business districts in the city: Concession Street BIA, Ottawa Street BIA, Westdale Village BIA, Downtown Dundas BIA, and Downtown Waterdown BIA. As a benchmarking exercise and to provide future direction to these five BIAs, the City of Hamilton has invited UMC to return to update these commercial market studies. This report addresses issues specific to Concession Street BIA. This work is sponsored as part of the City of Hamilton s sustained effort to improve the vital commercial districts throughout the entire City. It supports the Hamilton Council s strategic goals related to maintaining and enhancing liveable communities and neighbourhoods. The City of Hamilton should be commended for its active support of neighbourhood economic development. That support has come through physical plans, streetscaping, marketing research, strategic directions, education, and devoting staff and resources to assist the commercial districts, and the Hamilton Association of Business Improvement Areas ( HABIA). The purpose of this report is to build upon the comprehensive commercial market strategy and an action plan that was prepared for Concession Street BIA in 2002/2003. The nature of the report is to juxtapose findings and recommendations from the previous report and current conditions in 2009. The findings were presented to the BIA members in a workshop. This report includes the background information, review of the previous study and refinements to the action plan items to assist the retailers, BIA, and the City. Much of the information contained in this report is the result of primary research conducted by UMC consultants. The research included interviews with key stakeholders associated with Concession Street BIA, a license plate survey, an inventory of existing retail/commercial space, and a physical survey of the area. 1.1 Background and Project Information Concession Street BIA includes the commercial properties located on the Mountain Brow between Upper Wellington Street and Sam Lawrence Park to East 39 th Street and, Mountain Park Avenue on the east. This includes the neighbourhoods of Inch Park, Eastmount, and Raleigh. The total commercial district runs approximately 9,000 feet. However, the retail portion stretches from East 15 th Street to East 33 rd Street, which is approximately 5,500 feet. Even within this area, there is a mixture of retail building types including freestanding operations usually with their own parking and traditional street front operations. The area with the highest concentration of buildings in a traditional street front manner is located between Upper Wentworth Street and East 26 th Street, a distance of 2,300 feet. Overall, Concession Street BIA is 4

long with a wide assortment of building uses including Henderson Hospital and the Juravinski Cancer Centre. Concession Street is the first major street on the Mountain Brow lying just south of the escarpment. It affords a great view of Downtown Hamilton, Hamilton Harbour, and the other surrounding neighbourhoods. Historically, it is also significant as it was the first commercial district on the Mountain. It is also the only area on the Mountain that contains historic commercial buildings in a main street setting. In 2007, the street celebrated its 100 th anniversary. 5

2.0 Report Format As a first step in assisting Concession Street BIA to re-assess the 2002/2003 commercial action plan strategy and develop a program for future direction, UMC conducted fact-finding initiatives. The area s strengths, weaknesses, opportunities, and threats were identified. The initiatives included: Customer Profile > Trade area delineation review; > Demographic analysis of Concession Street BIA s trade areas; and > Review of previous study and marketing materials from the BIA. Retailer/Supply Side Profile > Interviews with a variety of retailers and key stakeholders to identify issues and opinions about commercial success in the area; > Inventory and inspection of the businesses and services; and > Review of the physical environment. Strengths, Weaknesses, Opportunities, and Threats > Summary of the findings and impact on Concession Street. This section of the report summarizes the findings of these activities and provides background information from which the following Commercial Action Plan has been developed. 6

4.0 Concession Street Trade Area Review To assess whether there has been a significant change in the Concession Street BIA trade areas, a licence plate survey was conducted in August 2009. A total of 194 license plates were analyzed. The table on the map illustrates the Dissemination Area (DA) where the vehicle is registered (e.g., the owner s home address, or a commercial vehicle s business address). DAs are small geographic areas that contain approximately 400 to 700 persons (note that rural DAs represent a larger area than urban DAs). Red is used to highlight those DAs where a larger number of vehicles originated from and green shows that only one vehicle originated from this defined geographic area. Even though there are limitations to license plate surveys, it is beneficial data in application to key person interviews. The primary limitation is the capture of license plates from those who are not local shoppers (e.g., employees as well as visitors). Concession Street BIA License Plate Survey by Dissemination Areas While Concession Street still attracts from the local area and the Mountain, there are indicators 9

that it has become a point of destination for many other consumers. For instance, the geographic disbursement from which vehicles come indicates a shift from a neighbourhood street to a street that is appealing as a shopping destination. Seventy-nine percent of the license plates come from a single Dissemination Areas (DA) that are scattered throughout the entire region. One DA to the east of Concession Street BIA had five visitors that were found on Concession Street when the survey was conducted. Based on this analysis and conversations with retailers during the key person interviews, it was determined that the Primary Trade Area should be altered and expanded to reflect the growth to the south. These trade areas include: > Immediate Trade Area (ITA) Mountain Brow within an easy five minute walk > Primary Trade Area the Mountain area west to Scenic Drive and south to Dickensen Road (previously the trade area stopped at Rymal Road) > Secondary Trade Area Downtown Hamilton, Dundas, Burlington, and Stoney Creek Concession Street BIA Trade Areas 10

The trade area for Concession Street BIA includes a very large geographic area that includes over 1.7 million residents that can drive within thirty minutes-to-one hour. In addition, sales are derived from inflow from Mississauga, Toronto, and other communities. 4.1 Trade Area Population Characteristics The following analysis compares the Concession Street Trade Areas to the City of Hamilton as well. Additional analysis will be provided based on comparatives to the study conducted in 2002/2003. ITA Primary Trade Area Secondary Trade Area City of Hamilton Population 2009 8,538 162,895 486,168 542,691 Annual Growth Rate - 2004/2009-0.2% 0.9% 0.1% 0.2% Households 2009 4,090 60,944 199,246 211,923 Annual Growth Rate - 2004/2009 0.0% 1.9% 1.0% 0.4% Persons Per Household 2.07 2.64 2.40 2.52 Household Size One Person 38.9% 21.9% 29.0% 25.9% Two Person 32.5% 31.8% 32.3% 31.6% Three Person 14.0% 17.5% 15.7% 16.4% Four-to-Five Person 13.4% 25.5% 20.4% 23.2% Six + Person 1.2% 3.3% 2.6% 3.0% Mobility Recent Resident - Less than Five Years 10.0% 9.0% 13.0% 12.0% Recent Resident - Less than One Year 3.0% 3.0% 4.0% 4.0% Age Profile <20 17.7% 23.9% 21.8% 23.2% 20 29 18.1% 13.6% 14.6% 14.3% 30 39 13.2% 12.1% 12.6% 12.8% 40 49 16.6% 15.4% 15.3% 15.5% 50 59 14.3% 13.0% 13.7% 13.8% 60 64 5.4% 5.2% 5.6% 5.5% 65+ 15.7% 16.8% 16.4% 14.8% Median Age 41.3 40.3 40.7 39.8 Children Age Profile <6 22.7% 18.6% 19.6% 19.8% 6 14 29.0% 34.5% 34.0% 34.5% 15 17 12.1% 12.0% 12.0% 12.2% 18 24 24.2% 21.8% 21.4% 21.5% 25+ 11.9% 13.0% 13.1% 12.1% 11

ITA Primary Trade Area Secondary Trade Area City of Hamilton Marital Status Single 23.1% 23.2% 24.6% 24.3% Married/Common Law 51.9% 59.1% 55.9% 57.8% Widowed, Divorced, Separated 25.0% 17.7% 19.5% 17.9% Education Less than High School 27.7% 25.5% 25.5% 24.7% High School 29.5% 28.0% 27.7% 27.2% Diploma, Trade Certificate 31.0% 31.3% 28.3% 29.0% University 11.8% 15.2% 18.5% 19.1% Occupation Management 6.4% 8.0% 8.5% 8.8% Business, Finance, Admin 16.0% 17.8% 16.7% 16.4% Science Related 4.6% 5.4% 5.4% 5.3% Health Related 6.8% 7.2% 6.1% 6.3% Education, Government, Social Service 6.7% 7.4% 8.1% 8.3% Arts, Culture, Recreation 2.0% 2.2% 2.5% 2.5% Sales and Service 29.2% 26.1% 25.5% 24.4% Trades, Transport 19.3% 16.3% 16.4% 16.7% Primary Industry 1.4% 1.2% 1.5% 2.3% Processing, Manufacture, Utilities 6.9% 6.6% 7.3% 7.2% Transportation to Work Take Public Transit, Bike, Walk to Work 20.2% 12.6% 17.3% 15.1% Visible Minority Total Visible Minority 834 29,004 73,143 77,992 % of Total Population 9.8% 18.0% 15.3% 14.6% Top 5 Visible Minorities Black Black S. Asian S. Asian Filipino S. Asian Black Black Latin American Chinese Chinese Chinese S.E. Asian Arab S.E. Asian S.E. Asian S. Asian Filipino Arab/L. American Arab/L. American Household Income < $20,000 17.1% 12.2% 16.0% 14.5% $20,000 $39,999 26.4% 19.7% 21.7% 19.7% $40,000 $59,999 22.5% 19.0% 19.2% 17.7% $60,000 $79,999 15.5% 15.6% 14.2% 14.0% $80,000 $99,999 7.0% 10.4% 8.2% 10.1% $100,000+ 11.4% 23.1% 20.7% 24.0% Average Household Income $58,745 $78,158 $73,770 $79,148 Median Household Income $45,319 $59,033 $52,352 $57,655 Rent Housing 42.5% 24.3% 35.1% 30.2% Source: Statistics Canada, Environics 12

The main findings include: > The population has fallen slightly since 2001. Today the ITA population is 8,538. This compares to 8807 in 2001 a difference of 269 residents. The relatively small neighbourhood population makes it difficult for some businesses to survive. They have to rely on outside visitors such as hospital staff, visitors, and patients or the broader regional population to support their sales. > The household growth rate during the same period is 0.0% (flat) indicating there is a slight movement towards growth. Older households have been replaced with smaller sized families and households. There is constant turnover of residents in the nearby apartment buildings. > The Primary and Secondary Trade Areas have grown modestly in the past eight years. There are less than 500,000 residents in the Secondary Trade Area. > Overall, household sizes are smaller in the ITA compared to the other trade areas. The household size has decreased slightly from 2.12 in 2001 to 2.07. > Proportionately, there are more households that are one and two person households in the ITA compared to elsewhere and comparatively, proportionately fewer very large households. Approximately 71% of the households are occupied by either one or two persons. A large proportion of the smaller households are adults and not seniors. > There are slight differences in the mobility of the ITA residents. Only 10% of residents have moved to the ITA within the last five years but a further 31% moved around within the ITA within the last five years. Significant proportions of residents have moved but are staying within the same general area. Over 42% of households rent which is significantly higher than elsewhere. As such, residents are more likely to move residences. > The median age in the ITA is older than elsewhere (approximately 1.4 years older than the median age for the City of Hamilton). There are proportionately fewer children and young adults under 20 years of age compared to elsewhere and proportionately more 20 to 59 year olds. There are a very high proportion of 20 to 29 year olds living in the ITA (18%) > The absolute number of children under 20 years of age has declined significantly. The proportion has decreased from 21% to 18% from 2001 to 2009. However, this is compounded by the fall in total population. There are 338 fewer children in 2009 compared to 2001. > An illustration of the net change in age groups in the ITA is provided in the following chart. There have been significant positive changes in the 50 to 59 and 20 to 29 age groups accompanied by declines in the under 20, the 30 to 39, and the over 65 year old age groups. 13

Concession Street ITA Change in Age Profile 2002 to 2009 1,400 1,200 1,000 800 600 400 200 0 <20 20-29 30-39 40-49 50-59 60-64 65+ -200-400 -600 Source: Statistics Canada, Environics > The children that do live in the ITA tend to be either slightly older (18 to 24 years of age) or slightly younger (under six years of age) compared to elsewhere. > There are proportionately more divorced and separated residents in the ITA. Proportions of single residents are low. There are higher proportions of common law couples compared to elsewhere. > The ITA includes a lower proportion of well-educated residents (9% of the population over 15 years of age). > There are a high proportion of residents employed in sales and service occupations. There is a slightly higher proportion of residents employed in trades and transport occupations and a slightly less proportion of residents employed in management, business, finance, administration, sciences, health, education, government, social service, and religious occupations. > The ITA residents are dependent on public transit and walking as compared to elsewhere. Twenty percent indicated they take public transit or walk to work. > There are small pockets of visible minorities but overall visible minorities account for less than 10% of the total population. There are higher proportions of visible minorities in the Primary Trade Area and in particular the area to the north of the Linc. 14

> Average household income is approximately 26% lower than the average for the City of Hamilton ($58,745 compared to $79,148) and significantly less than elsewhere in the Primary or Secondary Trade Areas. Sixty-six percent of households earn less than $60,000 annually. The retail implications of the preceding analysis indicate: > The relative small population base surrounding Concession Street BIA and declining population means that Concession Street BIA businesses have to be reliant on other target markets such as regional residents and hospital related target markets. > The business opportunities will tend to be more value conscious by nature. > The falling children population is of concern to businesses. 4.2 Household Expenditure Analysis The annual estimates for household spending by retail commodity categories are derived from a combination of factors including household income and other socio-economic data. This includes household size, age, occupation, etc. Of all the influencing factors, household income is the most important because the more money people make, the more able and likely they are to spend. While the relationship between income and expenditure is strong, it is not directly proportional. As incomes rise, a greater proportion is spent on investments and other non-consumable items. The following table provides a breakdown of commodity spending categories. Annual household expenditures for the three trade areas and the City of Hamilton are shown. 15

Annual Household Expenditure ITA Primary Trade Area Secondary Trade Area City of Hamilton Retail Merchandise Women s Clothing and Accessories $771 $1,039 $1,044 $1,081 Men s Clothing and Accessories $572 $695 $713 $727 Children s Clothing and Accessories $194 $304 $279 $299 Material, Notions, and Sewing $157 $178 $203 $203 Home Furniture and Furnishings $829 $944 $889 $929 Home Equipment $803 $920 $799 $857 Garden Equipment and Supplies $219 $270 $264 $282 Home Entertainment $527 $604 $598 $615 Pet Supplies $352 $403 $378 $400 Sports Equipment $133 $159 $150 $164 Toys $94 $126 $113 $116 Electronics $54 $69 $67 $68 Art, Hobby $31 $41 $38 $40 Computer Equipment and Services $279 $372 $354 $358 Photographic Equipment and Services $148 $201 $189 $196 Reading $255 $296 $299 $303 Convenience Food From Stores $4,631 $5,633 $5,448 $5,569 Household Supplies $458 $548 $520 $542 Health Related Supplies $787 $941 $905 $915 Alcohol Purchased from Store $467 $531 $520 $536 Eye Care and Supplies $128 $140 $149 $148 Tobacco $821 $790 $777 $786 Eating and Drinking Food from Restaurants $1,319 $1,683 $1,579 $1,603 Alcohol Served $200 $244 $241 $235 Services Personal Care Services $370 $451 $444 $454 Furniture Repair $81 $76 $76 $79 Movies $77 $118 $119 $121 Attend Sporting Event $58 $62 $54 $56 Attend Live Arts Event $71 $91 $93 $92 Membership Services $209 $298 $302 $310 Packaged Travel $236 $327 $346 $376 Other Shelter $11,141 $13,648 $13,187 $13,545 Transportation $7,839 $9,378 $8,731 $9,203 Charity $524 $593 $617 $619 16

In terms of the proportion of average household income that is spent on some items compared to others, Concession Street residents (ITA) spend proportionately more, the same, and less on the following: Annual Household Expenditure Analysis Proportionately More Proportionately Same Proportionately Less > Furniture Repair > Electronics > Movies > Tobacco > Attend Live Arts Event > Children s Clothing and > Attend Sporting Event > Art, Hobby Accessories (including > Eye Care and Supplies footwear, jewellery, etc.) > Computer Equipment and > Charity Services > Material, Notions, and > Toys Sewing > Women s Clothing and > Alcohol Purchased from Store Accessories > Home Furniture and > Photographic Equipment Furnishings and Services > Pet Supplies > Packaged Travel > Home Equipment > Membership Services > Home Entertainment > Reading > Sports Equipment > Health Related Supplies > Transportation > Household Supplies > Men s Clothing and Accessories > Food From Stores > Personal Care Services Concession Street residents want to invest in their homes and families. They spend higher proportions of their incomes on items related to running their home food, eye care, health, and household supplies. In addition, they spend proportionately more on making their home a place to enjoy, including home entertainment (e.g., TVs), and household tools for the home (e.g., mitre saws). When they do go out to be entertained, it is primarily related to sports events. They spend higher proportions on sporting equipment and sporting events. They will look for more bargains related to clothing and tend to spend proportionately less on luxuries such as packaged travel vacations, live cultural arts events, and movies. 17

5.0 Retail Commercial Audit An audit of the existing retail/commercial businesses on Concession Street BIA was conducted in August 2009 to gain insight into the current retail situation. Other non-commercial uses such as residential, schools, houses of worship, social agencies, etc., were excluded from the audit. An important note is that the retail business profile was in a constant state of change during this time as new businesses were constantly being added or altered. In completing the audit, a comparison to the audit conducted in 2002 helps to reveal changes that have been accomplished. 18

Concession Street BIA Retail Audit RETAIL MERCHANDISE Number of Businesses Square Footage Number % of Total Total % of Total Apparel and Accessories 7 4.4% 9,500 3.5% Home, Appliance, Electronics 5 3.1% 6,500 2.4% Leisure 9 5.7% 12,400 4.6% Other General Merchandise 4 2.5% 7,000 2.6% TOTAL RETAIL MERCHANDISE 25 15.7% 35,400 13.2% CONVENIENCE FOOD AND DRUG Convenience Store 6 3.8% 9,300 3.5% Drug Store 4 2.5% 19,600 7.3% Grocery 3 1.9% 14000 5.2% Specialty Food 6 3.8% 8,900 3.3% Total 19 11.9% 51,800 19.3% EATING AND DRINKING Café, Fast Food 9 5.7% 10,400 3.9% Restaurant 7 4.4% 13,500 5.0% Total 16 10.1% 23,900 8.9% SERVICES Total Personal Services 22 13.8% 32,200 12.0% Financial Services 4 2.5% 4,500 1.7% Professional Services 13 8.2% 19,100 7.1% Medical Services 29 18.2% 38,085 14.2% TOTAL SERVICES 68 42.8% 93,885 35.0% OTHER RETAIL Automotive 4 2.5% 7000 2.6% Other Uses 1 0.6% 800 0.3% Entertainment/Recreation 5 3.1% 29,100 10.8% TOTAL OCCUPIED COMMERCIAL 138 86.8% 241,885 90.2% VACANT COMMERCIAL 21 13.2% 26,400 9.8% TOTAL COMMERCIAL 159 100.0% 268,285 100.0% Source: UMC Compared to the retail commercial audit conducted in 2002/2003 there are several salient findings: 19

> The number of stores and square footage has increased. Several buildings that were not considered retail previously now have retail uses along with several redeveloped properties such as Shoppers Drug Mart, Tim Hortons, among others. There is a further 25,785 square feet of retail space in 2009 compared to 2002/2003. In total, there are 159 businesses and just less than 270,000 square feet of retail space. Overall, the BIA is quite large compared to other BIAs. > The vacancy rate has reduced considerably. It previously accounted for 14% of the total square footage and now is under 10%. This is even more impressive given the increase in total square footage (approximately 26,000 sq. ft.). > Service remains the largest category. Over one-third of the total square footage is devoted to personal and professional services. The proportion of square footage devoted to medical services has remained approximately 14% but the total amount is estimated at 38,000 square feet. Beauty, barber, nail, and hair salons also account for a significant amount of the total square footage. > Convenience goods has witnessed the sharpest increase since 2002/2003. The category has increased from 11% to 19% of the total square footage. New grocery stores, expanded grocery stores, new drug stores, and specialty food stores have filled out this category. Not all are local neighbourhood retailers as some specialty food stores draw visitors from across the region for ethnic specific food options. > Retail merchandise is the one faltering category. The total square footage devoted to retail merchandise has fallen from 20% to 13%. A decline in home related merchandise is primarily the reason. > The eating and drinking category has fallen slightly from 11% to 9% of the total square footage. This is primarily due to fewer bars along Concession Street. However, the overall quality of the eating and drinking establishments along Concession Street has improved. > New entertainment and recreational uses such as the movie theatre and Puck Masters draw customers to the area. 5.1 Market Positioning During the initial market positioning conducted in 2002 the overall image was traditional and mid-to-lower income/price appeal. This positioning has shifted. Today the positioning remains traditional but shifted more into the mid income/price appeal. 20

5.2 Façade Improvements and Overall Improvements Property owners along Concession Street made excellent use of the façade improvement program from 2002 to 2004. To date, twenty-one applications have been approved. The property owners have leveraged $96,783.67 in City funds for a total improvement of $204,822.11 from 2002 to 2008. Issues with the program for some business owners include the timing of the program (twice a year), the faltering sales and business activity in the area limiting the ability to re-invest in their buildings, and the shift from low interest loans to a matching grant (it is often too difficult for a property owner to come up with half of the redevelopment money as opposed to obtaining a low interest loan from the City). A review of the building permits for Concession Street for retail commercial businesses shows that there have been consistent improvements for Concession Street BIA businesses since 2001. In addition, there have been improvements to churches, residential buildings, and the hospital. Note that signage building permits are not included in the following table. Building Permits Building Permits Concession Street BIA 2001 $33,500 2002 $15,000 2003 $261,000 2004 $299,500 2005 $734,300 2006 $596,853 2007 $2,149,500 2008 $95,575 YTD 2009 $212,900 Total $4,398,128 A select number of examples of before and after images of buildings along Concession Street BIA show the remarkable changes that have occurred from 2002/2003 to 2009. 21

2002/2003 2009 new bright and clean grocery store 2002/2003 2009 small updates in the signage 2002/2003 2009 Complete new façade and store 22

2002/2003 2009 New signage freshens up the look 2002/2003 2009 New recreational use will draw customers 2002/2003 2009 New windows, store and parking added to the side 23

2002/2003 2009 New façade 2002/2003 2009 Fix the façade and new uses 2002/2003 2009 New Tim Hortons 24

2002/2003 2009 Medical centre in a previously vacant building 2002/2003 2009 Shoppers Drug Mart replaced the Hillcrest 2002/2003 2009 Movie theatre added to Concession Street 25

2002/2003 2009 New façade 2002/2003 2009 Expansion of grocery store 2002/2003 2009 Freshened store front 26

2002/2003 2009 New façade for building on right and new use for building on left 2002/2003 2009 New façade and windows added 2002/2003 2009 Change in use Overall, there is less use of bars and grills on the windows. Also, the sightlines from the street into the stores have improved significantly. Both add to the sense of safety and excitement along the street. 27

5.4 Parking Meter Usage From 2002 to 2008 parking meter revenue for Concession Street BIA had remained relatively consistent until 2008. In 2008, there was a significant increase in revenues. 2004 2005 2006 2007 2008 Net Revenue $81,337.16 $84,519.93 $85,546.32 $86,258.91 $105,367.18 Growth 3.9% 1.2% 0.8% 22.2% Net Revenue Per Meter $630.52 $650.15 $624.43 $611.77 $758.04 Number of Meters 129 130 137 141 139 There are no current pedestrian and vehicular counts for any intersection with the Concession Street BIA. A 24-hour count of vehicles on June 13, 2007 at the intersection of Concession Street and East 19 th Street revealed 13,522 vehicles. 28

6.0 Strengths, Weaknesses, Opportunities, and Threats The following were the initial strengths, weaknesses, opportunities, and threats for Concession Street BIA and the corresponding comments that are relevant for the current study in 2009/2010. Strengths 2002/2003 2009/2010 Concession Street BIA s location on Hamilton This remains true. Given the density along the Mountain provides a unique setting that does brow, the area is ripe for redevelopment not exist elsewhere in the City. potential. There is a loyal customer base that visit According to the retailers, the loyalty among regularly. local residents has fallen along with pedestrian traffic. There has been a change in residential as new residents have moved in and are less loyal to the local merchants. There is a strong cooperation among the BIA While there is BIA board fatigue, there is a merchants and businesses that helps to create renewed sense of cooperation to family atmosphere. accomplishing a refreshed vision for the BIA. The Street Festival is well planned and attracts It was determined that Street Festival did not close to 25,000 visitors on the weekend. serve the BIA member s interests. The BIA has developed alternative special events. The historic character of Concession Street is Concession Street celebrated its important, as it was the first commercial area one-hundredth birthday in 2007. Many to develop on the Mountain. It is unique for retailers are attracted to the historic main the Mountain, which is dominated by strip street type setting and family atmosphere. plazas and malls. The penetration of the Total Trade Area. With increased competition and the Within this area over 70% of the Primary redevelopment of the Mountain Plaza, it is Trade Area, residents have been to Concession more difficult for Concession Street to Street in the last year. compete with other retail centres on the mountain. 29

Strengths (continued) 2002/2003 2009/2010 Concession Street is a key location for personal Medical and professional services remain a and professional services (e.g., medical offices, dominant retail group along Concession lawyers, accountants, etc.). This strength has a Street. The redevelopment of the hospital will negative side because, although these further the need for more health and medical businesses bring additional users to the area, related goods and services. they also occupy space that could be used by retailers selling consumer goods. There are a number of food retailers including Food retailing has increased. There are more Zarky s and Opie s Meats. small grocers as well as more ethnic diversity in the food offering. Food retailing is a strength of Concession Street BIA. The Concession Street BIA is working to This has been a strong focus for the BIA. The provide the needed liaison between the City BIA has actively worked with the City and and retailers on the street to effect change. other agencies to develop programs and initiatives. There is a renewed sense that this is an important priority for the BIA. Concession Street can also take advantage of This still needs to be enhanced and is more Henderson Hospital and the Cancer Centre s critical given the expansion. In addition, at this staff, patients, and visitors that come to the time it is probable that retail services will be area, as well as the local churches, social included in the expansion but the exact types service agencies, and the library. of retailers is not known. 30

Weaknesses 2002/2003 2009/2010 The population size of the ITA, at 8,807 The population did continue to decrease residents, is losing population and is projected especially among young children. There is a to continue to lose residents into 2006. In shift towards more destination type retail. addition, the affordable nearby housing has attracted more single residents rather than families. These factors means that businesses cannot expect to expand from marketing solely to the ITA. Businesses must market to the broader Primary Trade Area in order to remain competitive. Pedestrian volumes are not strong enough to This is even truer today. Businesses need to support many businesses. Often businesses expand beyond the pedestrian traffic to have to rely on wholesale or phone/internet increase sales. purchases to build sufficient sales. While there are some businesses on There is a shift towards increased Concession Street that operate on a very professionalism among the businesses. The professional level, many businesses have not investment by the property owners and the received significant investment for many years retailers is noticeable and verified through the and as a result look tired and run-down. building permit data. Businesses are more Some businesses have been clearly professionally run, cleaner, and better undercapitalized from the beginning. These merchandised. businesses are no match for more professional operations at Lime Ridge Mall or some of the other plazas on Fennell Avenue or Mohawk Road. The number of absentee landlords compounds this problem. The vacancy rate on Concession Street stands Vacancy rates are now below 10% and a at approximately 14%, and include a couple of further 26.000 sq. ft. has been added to the large properties, including the former Loblaws total sq. ft. (270,000 sq. ft.). This is a vast building. improvement. In addition, several buildings have been renovated and are more professional looking. 31

Weaknesses (continued) 2002/2003 2009/2010 There are safety and security concerns Youth related incidents remain an issue particularly related to youth incidents and among BIA members. It is noted that the vandalism. police centre has made a significant effect on disruptive behaviours. Concession Street is more isolated than other This remains true. The loss of one of the bus areas on the Mountain and in the City; it is not lines through Concession Street impacts the directly accessible to all Mountain area retailers. residents. From a consumer s point of view, Concession Street s key weakness is a lack of retail variety, including eating and drinking, from which to choose. Retail merchandise and eating and drinking operations have both continued to decline. The quality of the operations is better than previously operated businesses. Due to the hospitals, many parking spots are occupied by staff and visitors leaving fewer spaces for shoppers. Parking remains an issue. A comprehensive parking program is required that assesses the needs of the hospital, residents, and businesses. 32

Opportunities 2002/2003 2009/2010 Partner with Henderson Hospital and Cancer This has not been accomplished but the BIA is Centre for promotional efforts. making renewed efforts to work cooperatively. The hospital has extended their assistance towards improved marketing capabilities (within what is allowed). This should be a focus of the Economic Development Committee of the BIA. Work with the City of Hamilton to help There was good use of the façade improve the look of the buildings. improvement program. The program is being Work with the City, other levels of refined. It was noted by some members of the government, and social service agencies to BIA that when the program was a low interest help secure funding for incubator businesses loan there was more interest as it was easier to in the area. This can be in the form of low finance. Now, the property must come up interest loans or discounted rental space to with half of the redevelopment money all on help small, would-be entrepreneurs start up their own. This may be too difficult for some any type of retail business. Training could be property owners to finance. offered for other business aspects such as marketing, accounting, sourcing products, etc. The City of Hamilton s Small Business Enterprise Centre is an excellent resource for small incubator type businesses. Promote low cost retail space available for Vacancy rates have fallen and new businesses buying or leasing to encourage entry into this have started. There is a noticeable increase in market for new retailers, especially cafés and Middle Eastern and South Asian businesses. restaurants. Build off of the area s natural setting. Concession Street s beautiful natural setting on the escarpment is still one of the best features. Businesses are recognizing this fact and new high rise residential developments are occurring (e.g., The Madison). This trend will likely continue. The BIA is interested in improved connections to the park space. 33

Threats 2002/2003 2009/2010 Renovations at Lime Ridge Mall and new This has happened as these malls including developments at the Meadowlands will draw Mountain Plaza have evolved and people away from Concession Street to these redeveloped. More power centre and larger larger centres. formats have opened. Competition is very significant for time and money conscious consumers. New start-up families do not have excess time This remains true. There are fewer children in to shop on Main Streets and rely more on the area and the families are time-starved. malls and power centres for ease and convenience. There is a negative image of the area (as Concession Street has made improvements, it obsolete). is cleaner, the facades are better, and new businesses have opened. This new, refreshed image needs to be marketed better. The diversity of businesses, food offering, and colours on the street is a good starting point. Continued vacancies and/or vacant lots can Vacancies are below 10% and redevelopment portray an image of no growth or bad is happening including Shoppers Drug Mart, investment. Tim Hortons, the movie theatre, and the hospital redevelopment overall. There is a large captive audience of hospital The shortened lunch breaks of hospital staff staff, patients, and visitors who are visiting have to be incorporated into the retailers and leaving Concession Street because they do business plan. There is more retailers can do to not feel there is anything else to do in the area. market to this group. 34

7.0 Vision and Action Item Review In October 2009 a BIA workshop was held. Input included two exercises a map exercise whereby participants were asked to use coloured notes to articulate where they thought retail should go (green), improvements to streetscaping (pink), and other issues (blue). In addition, participants were asked to select visual images that best portrayed their vision for Concession Street BIA. 35

The workshop revealed the following: > Preference for bright colours, culturally alive, vibrant, and full of life > A need for increased beautification including upkeep of gateways, benches, flowers, and programs for an incline railway, and enhancing the natural environment overall > More family oriented retail including family restaurants, pet stores, family clothing > One participant had a pessimistic view of the future > More outdoor patio space Many of the key findings that guided the results of the initial market assessment in 2002/2003 remain true in 2009/2010. The function will be a neighbourhood, main-street shopping district for local and regional residents combined with a specialty regional function focused on health care services, specialty food, and unique goods and services. The vision for Concession Street BIA includes: > Neighbourhood or family of individually owned and operated businesses and organizations that provide personal value > Diversity businesses, colours, regional visitation, multi-generational The overall theme is Where Neighbours Meet. This is debatable whether this is still relevant for Concession Street BIA. The BIA will work with these ideas to develop a new theme for the BIA that reflects the stronger identity. A review of the recommendations from the Action Plan in 2002/2003 and the current status of those recommendations are provided below. 36

Organization The BIA had suffered some set backs in the recent past but is now refocused and energized to develop a new vision for the BIA. It aims to work cooperatively in committees and through their executive director to continue to improve the street. The current BIA budget has remained at approximately $90,000 for the last three years which is primarily derived from $78,750 in levy from the property owners. With the new developments and increased assessments on these properties, the BIA budget should have been increasing. The existing properties would pay the same amount each year and the increase would come from the occupied and new developments. This has not occurred. The BIA should allow the budget to naturally increase based on increased assessment. 2002/2003 2009/2010 Develop committees to address specific Committees have been established including an issues related to marketing, economic executive committee, marketing, streetscaping, and development, and physical design economic development. Currently the marketing improvements. and streetscaping have combined but they need to be separate. The economic development committee needs to take on the task of coordination with their partners such as the hospital, churches, farmers market, etc. Marketing should focus on special events and promotions. It is up to the chairperson of each committee to determine the level of detail in which the committee gets involved in the actual details or if this is handed over to the executive director to assist in carrying out the programs. The committee will make recommendations to the Board and provide direction to staff as to the priorities and budgeting. Continue to communicate openly with merchants and property owners. The BIA does an excellent job working with the merchants and property owners on the street. Newsletters are often hand delivered. This emphasis was renewed by the board as a way of continuing to be involved with the merchants, discuss issues, and provide a face for the BIA to the merchants. 37

2002/2003 2009/2010 Increase partnership opportunities with This has not been achieved. This will be a project for the hospital. the Economic Development Committee of the BIA. The BIA does sit on the Farmers Market board but there may be other opportunities to have other organizations sit on the BIA board (e.g., hospital). Who Does What Sheet The City completed this project. Commitment to HABIA The City has continued to make a commitment to this program through the Downtown and Community Renewal Division. Increased staffing and resources have made this an effective and wellrespected organization. There is an opportunity for greater education and understanding between various City departments, HABIA and individual BIAs. Overall, the BIA sees value in the services the City provides through Downtown and Community Renewal and HABIA. There may be a need for a strategic review of the role and structure of HABIA, especially in light of the increased number of BIAs, their different needs and the wide range of issues they may have. BIA representatives should report back to their membership on HABIA issues and sub-committees they may sit on to keep members informed of BIA positions and input to studies (e.g. rapid transit, truck route master plan). Continue Downtown and Community Renewal s efforts to link BIAs with relevant City departments on various issues that arise, and increase other departments awareness of the BIAs and their concerns. 38

Economic Development There is more opportunity to develop Concession Street BIA s strengths related to diversity of food and food service operations, cancer care needs and support, and other services such as beauty, barber and specialized destination businesses. The potential for redevelopment exists as the hospital nears completion. This may be in the form of redeveloped mixed-use buildings (residential and retail) or parking garages that have retail at the base. The overall aim is to create as much consistent retail frontage as possible. It is also important that the redeveloped properties do not excessively encroach on the residential buildings behind. 2002/2003 2009/2010 Goals eating and drinking from 11% to Vacancy is less than 10%. The eating and drinking 13% in three years and eventually 20%; fell to 9% but the quality has improved specialty food from 11% to 13%. substantially. There is a need for more familyfocused restaurants. In addition, the shift to shorter nutrition breaks by hospital staff mean that food service operators need to adjust by providing more ready-to-go meals rather than sit-down service. Specialty food has increased to 19% in line with the recommendations. This is a strength to encourage along with the farmers market. Develop a program to increase learning for the merchants and property owners through education seminars, sharing demographics, and increased networking. Hold regular meetings with stakeholders on updates. There may be opportunities to pursue more health related retail particularly related to cancer care (e.g., wigs, clothing, gifts, books, etc. many of which exist along Concession Street). This has not been accomplished due to lack of time for the part-time status of the executive director. The BIA has started the wine and cheese events for member networking. The recent event attracted a high turnout of members. At the board meetings, different food from the food service members is provided to showcase what is available. This type of meeting, sharing, and learning should be encouraged. This is part of the BIA s Economic Development Committee s tasks. The BIA actively communicates with the members and meets with them on a regular basis. This often happens face-to-face and is encouraged by the BIA. 39