10. Retail Leakage Study
A study to establish the retail dollars
leaving or entering a community from
its primary and secondary trade areas.
11. A Glance at the Trade Areas
• PTA stores sold $186 million
• PTA Consumers spent $335 million
• Chester Primary Trade Area is LEAKING
$148 million annually overall each year.
• STA Store Sales $15 Million
• STA Consumers spend $85 million
• Secondary Trade Area is LEAKING sales in
the amount of $70 million each year.
16. Opportunities
• Downtown --
– Clothing
– Furniture and Home Furnishings
– Dining
– Health and Personal Care
• Some Chester Observations --
– Underserved by grocery stores
– Fast food
– Building material
18. • Chester County is proposed to have one of the largest
single tract development in the history of the
Carolinas.
• Once completed (20 year time horizon) Montrose
alone will bring $2 billion in investment and
development equal to about half the size of the City of
Greenville in geography and population.
• Population projections show decline in Chester but
consider this:
Residential Strategy: The Issues
19. • Leesburg/Loudoun: 42.9 miles from Washington
– 1970 37,150 population
– 2000 169,599 population
– 2007 277.237 population
• Lawrenceville/Gwinnett: 39 miles from Atlanta
– 1970 72,349 population
– 2000 588,448 population
– 2007 870,611 population
• Chester/Chester: 49 miles from Charlotte
(60 miles from Columbia)
– 2000 34,068 population
• How will Chester position itself in this situation? In the
City’s situation, it all centers on rooftops.
Residential Strategy: The Issues
20. Downtown Chester will capture its
share of regional growth by setting
the stage for investment in new
housing opportunities and
renovation of existing housing.
Residential Strategy: The Vision
21. • Develop marketing piece promoting
Chester as a residential location.
• Work with local businesses to furnish a
“mock” model residential unit for upper
floor housing.
• Start a faith-based clean up program for
neighborhoods in need: Christmas in
July.
• Pursue residential development as a
component of the rebirth of the
Springsteen site:
The Initial Projects: 2008-2009
22. • Complete environmental assessment of
the Springsteen site.
• Secure option to buy the site.
• Secure Brownfield Voluntary Cleanup
protection for the site.
• Pursue agreement to market property.
• Explore PARD grant for recreational
component.
• Put together RFP for investment profiling
the mill tax credits.
The Springsteen Site: First Steps
23.
24.
25.
26. • Pursue an upper floor and residential
recruitment program with an emphasis on
artists (see next strategy).
• Initiate development agreement for
Springsteen Site with selected developer
partner(s).
• Work with property owners of the Thomas
& Howard Warehouse to market property
for residential development adjacent to a
new “Gateway Park”.
Next Steps: 2009-2013
27.
28. • Complete 40 upper floor residential
units downtown.
• Complete 200 new residential units in
close proximity to downtown.
• Complete 100 residential renovations
throughout the city.
Completion Steps: 2014-2018
29. • “The arts” is a 36.8 billion industry: the arts are real
economic development. (National Governors
Association)
• The “Creative Economy” has become a buzzword in
economic development circles particularly in
communities where industrial recruitment is no longer
an option.
• Chester is strategically positioned between two metro
areas, with a spectacular setting, and still affordable
location.
• Rooftops alone will not be the engine for growth, we
need an authentic catalyst around which to build the
economy and image.
• Chester has something few communities can claim: a
legacy of the arts through the Brainerd Institute.
Arts Strategy: The Issues
30. The Arts will become the
foundation upon which the
economic revitalization and
community unification of Chester
will build. The Arts will bring the
community together, encourage
investment, and foster a unique and
authentic identity for Chester.
Arts Strategy: The vision
31. • Hold a community “summit for the arts” to
gather together artists, patrons, and other
partners to discuss the future.
• Meet with the owners of the Brainerd Institute
to determine appropriate partnership
opportunities.
• Pursue a marketing piece to promote all of the
arts in Chester County using the Chester
Brand.
The Initial Projects: 2008-2009
32.
33. • Pursue an artist residential recruitment strategy
modeled after Paducah, KY and/or ArtSpace
developments:
– 100% financing for purchase and rehabilitation of an existing
structure or the building of a brand new structure.
– Basic loan package is 7% - 30yr. fixed rate up 300% of
appraised value.
– Free lots for new construction as available.
– City will pay up to $2500 for architectural services or other
professional fees.
– National marketing of Lowertown Arts District and Paducah.
• Partner with Brainerd Institute to create an artist
in residence program at the campus.
• Develop Brainerd gallery/studio in downtown
Chester as catalyst/incubator for artists and
businesses.
Next Steps: 2009-2013
34.
35.
36. • Re-open Brainerd Institute as the
Brainerd/Ayers Arts Institute.
– Accredited arts college.
– High school partnership program.
– Artist in residence.
Completion Steps: 2014-2018
37. Business Strategy: The Issues
• Chester is leaking sales to the tune $218 million each
year.
• Major categories where sales are leaking are:
– Clothing
– Furniture and Home Furnishings
– Dining
– Health and Personal Care
• “Suburban” retail will enhance growth for the
community overall.
• It is imperative that a business base continue to grow
in downtown for the sake of the tax base of the city.
39. Business Strategy: The Vision
Chester’s downtown will re-emerge
as a specialty retail destination for
the region offering a variety of
shopping and dining options for
residents and visitors.
40. • Implement the Chester Brand to promote
the image of the community.
• Develop a Chester shopping and dining
guide.
• Develop improvements to the Lancaster
Street gateway - gateway park.
• Work with property owners to open
storefronts for monthly “antique” “craft”
“art” fair in downtown.
• Launch a downtown ambassadors program
to recruit retailers to Chester.
The Initial Projects: 2008-2009
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51. • Develop gateways for Columbia Street and Saluda
Street.
• Develop wayfinding system for Chester.
• Prepare a retail incentive program including:
– Rent subsidies for targeted business types.
– Low interest loans for business upfits.
– Joint marketing program for businesses.
• Redevelop the backlot as a retail expansion/public
space.
Next Steps: 2009-2013
52.
53.
54.
55.
56. • Target net 25 new retail businesses in
downtown.
• Target a net 6 new restaurants downtown.
Completion Steps: 2014-2018
57. • The projects in this plan are complex and
will require creative solutions involving
multiple partners.
• Chester must begin work on these efforts
immediately and unite behind a common
vision for the future… there is no time to
wait.
• There is no “single point of contact” for
investment opportunities in Chester.
• It is time for a renewed economic
development partnership for the City.
Organizational Strategy: The Issues
58. Chester will flourish under a re-
energized partnership between the
City of Chester, local businesses,
key community stakeholders, and
citizens.
Organizational Strategy: The Vision
59. • Create the Chester Alliance:
– A new flagship organization that will lead revitalization
efforts for the City.
– Reconstituted board of directors with representatives
from:
• Shopkeepers
• Major business leaders: Banks, Property Owners, etc.
• Arts Groups
• Partner Groups: County ED, Chamber
• City of Chester
– Use this guide as a benchmark work-program for the
organization.
– Staff the organization: either full-time or circuit-rider.
The Initial Projects: 2008-2009
60. • Consider a capital campaign to fund
improvements.
• Explore Tax Increment Financing and New
Market Tax Credits to fund improvements.
• Alliance commission Strom Thurmond
Institute to study service consolidation
opportunities between the city and county:
– Preserve existing service levels.
– Hold increasing taxes at bay.
– Create efficiencies for all citizens.
Next Steps: 2009-2013
Editor's Notes
50% - Chester zip
10% - Mad Heights - Good share of market
5% - Lynchburg
Forest doing as well as Lovingston
50% - Chester Zip Code = 24251
LOOKS LIKE IN/OUT SPLIT, but not
63% - Chester County (not including zips into adjacent counties)
10% - Nelson County (not including zips into adjacent counties)
89% - Chester, Nelson, Lynchburg, zips Adjacent to Chester County (Buena Vista, Appomattox)
= About 11% “visitors”
Not All Businesses Performed the Same
Average = 32.5% Town of Chester
Low – 14.3% Town of Chester
High – 67% Town of Chester
Not All Businesses Performed the Same
Average = 71.7% Town of Chester
Low - 20% Chester zip
High – 88.2% Chester zip
Not All Businesses Performed the Same
Average = 71.7% Town of Chester
Low - 20% Chester zip
High – 88.2% Chester zip
Not all zips equal
Vary area + population
Example
71 - Lynchburg
57 - Roseland
Penetration deeper into Lynchburg? NO
PTA/STA - Definition
Local Trade Areas = Base units for us to pull detailed market data
Chester + Nelson Counties
Strong Line at Lynchburg
Relatively large trade area = center of very rural area
Combined Leakage = $169 million each year
PTA leakage of 141 is a great deal, likely to competitive markets of Lynchburg/Mad Heights/Charlottesville
$23 million in STA is actually small compared to typical
Madison Heights is in STA
General merchandising (Wal-mart)
Home Centers (Lowes)
Lawn/Garden
Gas
Fast Food
#’s suggest demand for expanded retail
Detail - Individual Retail Categories
PTA Gain - ONLY IN TWO CATEGORIES
Outdoor Power equipment - OUTBACK Motor Sports
Gas & Convenience
Normally see more gain - Suggest strong retail pull from Madison Heights & Lynchburg
Detail - BOTH STA & PTA
Leakage - ALL CATEGORIES, BIGGEST BELOW
Bldg Materials - Home Centers & Commercial Building Supply (Lowes - Madison Heights)
GROCERY LEAKING - $21 million/year - Also in STA
Apparel = $7 million/year
Specialty - (Jewelry, Sporting Goods, Hobby, Sewing/Needlework, Books, Gifts)
Home Furnishings
Restaurants - $17 million/year! Both Full & Limited Services (Most Potential Full Service)
Opportunities for Retail Growth!
Same Study for STA
Outside of basic categories, still shows leakage.
Basic categories PTA leak to STA likely
Potential Clusters arising - Primary Trade area sales representing large SHARE of larger region
Antiques for example looks like
More detail to come…
Chester has a broad market base - reaching out into much larger rural area than typical
HUGE opportunity to establish market share (STA Leakage, Adjacency to Urban Area)