Business Types that Succeed and Make Downtown Successful

presented byBill Ryan, University of Wisconsin-Extension

JD Milburn, Wisconsin Economic Development CorporationOctober, 2011

Discussion Points

1. Current Business Mix in Wisconsin’s Downtowns

2. Openings and Closings in Main Street Communities

3. Examples of Vibrant Downtown Businesses

4. Market Analysis Tools to Plan a Vibrant Business Mix

5. Looking Beyond Restaurants and Retail – Downtown’s Role as a Place of Employment

Before We Start – Understand the Presence of Wal-Mart in Wisconsin

What percent of Wisconsin’s total population is within a 30-minute drive of a Wal-Mart store?

Quiz Question

1. Current Business Mix in Wisconsin’s Downtowns

A Study of the downtowns of 310 Wisconsin City/Villages with populations of 1,000 – 100,000 Current business mix Change in number of businesses (1998-2009) Average sales by business category

Current Business Mix – Cities/Villages of 1,000-100,000

Current Business Mix – Analysis by quarter, half and one 1-mile Rings

What are the three most common business categories in Wisconsin’s small town downtowns (pop 1,000-2,500)?

Quiz Question

.5-Mile Radius around Cities/Villages with 1,000-2,500 Pop.

Source: InfoUSA

Current Business Mix – Top 15 Business Categories in 2009

NAICS Description Number Sales (000's) Full-service restaurants 3.19 1,520

Drinking places (alcoholic beverages) 2.17 528

Beauty salons 2.15 284

Gasoline stations 1.08 4,085

Automotive mechanical & electrical repair 1.08 409

Grocery stores 1.01 5,077

Other amusement (bowling, golf, fitness) 0.98 511

Gift, novelty, & souvenir stores 0.92 332

Used merchandise stores 0.64 201

Automotive parts, accessories, & tire stores 0.54 429

Automotive body, paint, interior, & glass 0.54 176

Florists 0.53 126

Specialty food stores 0.52 706

Barber shops 0.5 43

Hardware stores 0.47 788

What are the three most common business categories in Wisconsin’s larger town downtowns (pop 50,000-100,000)?

Quiz Question

.5-Mile Radius around Cities/Villages with 50,000-100,000 Pop.

Source: InfoUSA

Current Business Mix – Top 15 Business Categories in 2009

NAICS Description Number Sales (000's) Full-service restaurants 19.40 15,766 Drinking places (alcoholic beverages) 12.30 5,059 Beauty salons 10.20 2,921 Used merchandise stores 5.10 2,273 Gift, novelty, & souvenir stores 3.80 1,003 Limited-service eating places 3.20 1,128 Photographic services 3.10 816 Art dealers 3.00 4,424 Other amusement (bowling, golf, fitness) 2.90 3,996 Jewelry stores 2.90 2,761 Women's clothing stores 2.80 1,564 Automotive mechanical & electrical repair 2.70 1,262 Specialized building material dealers 2.40 3,486 Appliance, television, & other electronics stores 2.20 3,864 Sporting goods stores 2.20 1,391

.5-Mile Radius around Cities/Villages

Source: InfoUSA

Current Business Mix – Differences in Sales Per Business

See: Retail and Service Business Mix Analysis of Wisconsin’s Downtowns

Accessible through the updated Downtown Market Analysis toolbox:

fyi.uwex.edu/downtown-market-analysis/

Source: InfoUSA

Current Business Mix – Analyze the Mix in Your Downtown

Appendix B. Worksheet for Analyzing Your Downtown

NAICS NAICS Description

Your Downtown, ___-Mile Buffer

Average in Comparison Downtowns

Number Sales (000's) Number Sales (000's) 44111000 New car dealers

44112000 Used car dealers 44121000 Recreational vehicle dealers 44122000 Motorcycle, boat, & other motor vehicles 44130000 Automotive parts, accessories, & tire stores 44210000 Furniture stores 44220000 Home furnishings stores 44311000 Appliance, television, & other electronics stores 44312000 Computer & software stores 44313000 Camera & photographic supplies stores 44411000 Home centers 44412000 Paint & wallpaper stores 44413000 Hardware stores 44419000 Specialized building material dealers 44420000 Lawn & garden equipment & supplies stores 44510000 Grocery stores 44520000 Specialty food stores 44530000 Beer, wine, & liquor stores 44611000 Pharmacies & drug stores 44612000 Cosmetics, beauty supplies, perfume stores 44613000 Optical goods stores 44619000 Other health care (vitamin, medical equip) 44710000 Gasoline stations 44811000 Men's clothing stores 44812000 Women's clothing stores 44813000 Children's & infants' clothing stores 44814000 Family clothing stores 44815000 Clothing accessories stores 44819000 Specialized clothing stores (dress, etc) 44821000 Shoe stores 44831000 Jewelry stores 44832000 Luggage & leather goods stores 45111000 Sporting goods stores 45112000 Hobby, toy, & game stores 45113000 Sewing, needlework, & piece goods stores 45114000 Musical instrument & supplies stores 45121000 Book Stores 45122000 Tape, compact disc, & record stores 45200000 General merchandise stores 45310000 Florists 45321000 Office supplies & stationery stores 45322000 Gift, novelty, & souvenir stores 45330000 Used merchandise stores 45391000 Pet & pet supplies stores 45392000 Art dealers 51213000 Motion picture & video exhibition 53210000 Automotive equipment rental & leasing 53222000 Formal wear & costume rental 53223000 Video tape & disc rental 53230000 General rental centers 54192000 Photographic services 71310000 Amusement parks & arcades 71390000 Other amusement (bowling, golf, fitness) 72210000 Full-service restaurants 72220000 Limited-service eating places 72240000 Drinking places (alcoholic beverages) 81111000 Automotive mechanical & electrical repair 81112000 Automotive body, paint, interior, & glass 81119000 Other automotive repair & maintenance 81141000 Home/garden equipment & appliance repair 81142000 Reupholstery & furniture repair 81143000 Footwear & leather goods repair 81149000 Personal goods repair (watch, boat, garment) 81211100 Barber shops 81211200 Beauty salons 81211300 Nail salons 81219000 Other personal care services (tatoos, spas, piercing) 81231000 Coin-operated laundries & drycleaners 81232000 Drycleaning & laundry (except coin-operated) 81291000 Pet care (except veterinary) services 81292000 Photofinishing

2. Openings and Closings in Main Street Communities

Discussion by JD Milburn, Wisconsin Economic Development Corporation

Innovative Downtown Businesses Clearinghouse

Case studies of retail and service businesses that are Innovative

Searchable by Type of business Size of community

Eventually include hundreds of businesses from small to medium sized downtownshttp://www.uwex.edu/ces/cced/downtowns/

3. Examples of Vibrant Downtown Businesses

Grocery Store

Just Food Co-op, Northfield, MN Emphasizes organic and locally produced foods. Cooperatively owned by 1,600 community members. Keeps dollars and business local. Changing the way people shop for groceries (browsing leisurely at a

community meeting place). 16

Restaurants

Titletown Brewing Company, Green Bay, WI Attracts locals and tourists alike Variety of home brews and quality food/pricing Anchors the downtown area/easily identifiable landmark Provides variety of spaces, both inside and out

17

Theater, Arts and Entertainment

Fergus Theatre, Fergus, MN Renovated 1921 theatre seats 400 Programming includes live theatre, independent and foreign films,

documentaries, live music, professional and local dance performances, visual art exhibitions, workshops and literary events, arts classes.

Retail - Recreation and Sporting Goods

Earth Rider Bike Shop and Hotel Combination bike shop and B&B, Organizes bike tours of the back roads and trails of Green County, Wisconsin

and nearby communities. Tours are designed for various cycling skill levels and have various theme such as farm tours and history tours.

19

Retail - Home and Garden Stores

Old Spud Warehouse, Gaylord, MI Located in renovated potato farmer’s cooperative built in 1900 Unique furniture, lighting, and home accents Products are purchased individually and mix is always changing

20

Retail - Local Specialty Foods

Galena Canning Company, Galena IL Produces over 350 old fashioned canned and sauce items Purchased and renovated 1942 hotel in 2006, noted a 400% increase in sales Added a small bakery and coffee shop, which is a vibrant draw throughout the

entire day 21

Retail - Book Stores

Autumn Leaves Used Books, Ithaca, NY A unique selection of hard-to-find books and records Serves as a gathering place with coffee shop in store Attraction for visitors to the area Ithaca HOURS program participant (local currency keeps business local)

Retail - Coffee Shop/Bakeries that Serve as Gathering Places

Red Mug Coffeehouse, Superior, WI Organic and Fair-trade drink and food Local meeting and leisure place Promotes social activism in their community Cooperation with other businesses in the arts community

23

Retail - Unique One-of-a-Kind Retail

Hoffman’s Patterns of the Past, Princeton, IL Known throughout the world for extensive china selection Over 175,000 pieces Special store events coincide with local festivals

24

Retail - Local Arts & Craft Shops and Galleries

Wind, Water & Light, Champaign, IL Features 180 local and national artists in a variety of mediums. Educates the shopper about the art, the process and the artist.

25

Retail - Variety Store

Pick & Shovel Building Materials, Newport, VT Attends to daily needs of residents and visitors Sensitive to local preferences regarding inventory and pricing Makes downtown a must-stop Provides a friendly community gathering place (ice cream stand)

26

• Self-help toolbox for downtown economic revitalization

• Intended for downtown professionals, planners, local study groups, and market research consultants

• Provides proven techniques for conducting commercial district market studies.

• Joint Effort of Wisconsin, Ohio and Minnesota Extension, along with the Wisconsin Main Street Program

4. Market Analysis Toolbox to Plan a Vibrant Business Mix

http://fyi.uwex.edu/downtown-market-analysis/

I. Understanding the Market

II. Analysis of Opportunities by Sector

III. Putting Your Research to Work• Niche Development• Space Usage• Image, Branding,

Marketing• Business Retention/

Expansion• Entrepreneurship• Business Recruitment

5. Looking Beyond Restaurants and Retail – Downtown’s Role as a Place of Employment

University of Wisconsin-Extension research examined the current business mix and employment estimates of businesses and organizations located within a half-mile walk of center of each of Wisconsin’s downtowns (300+ places with a municipal population of over 1,000).

Data was examined by municipality size, ranging from small cities (pop. 1,000 to 2,500) to larger cities (pop. above 100,000).

754 1,057 1,894 2,0363,660

7,163

46,402

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

Empl

oym

ent

Average Downtown Employment in Wisconsin Cities/VillagesWithin .5 Miles of the Center of Downtown

Average Downtown Employment in Wisconsin Cities and Villages

Downtown Employment Mix in Wisconsin Cities and Villages

Prof, Scientific, and Tech Services 5%Accommodation and Food

Services9%

Educational Services9%

Health Care and Social Assistance

9%

Finance and Insurance9%

Retail Trade10%

Manufacturing11%

Public Administration13%

All Other25%

Downtown Employment in Wisconsin Cities/VillagesWithin .5 Miles of the Center of Downtown

Downtown Employment by Sector

9%9% 10%

12%13%

19%20%

0%

5%

10%

15%

20%

25%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Public Administration

Within .5 Miles of the Center of Downtown

Public Administration

WI Average

20%

14%15%

14%

8%

3%2%

0%

5%

10%

15%

20%

25%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Maunfacturing

Within .5 Miles of the Center of Downtown

Manufacturing

WI Average

Downtown Employment by Sector

12%

14%

12% 12%

15%

7%

4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Retail

Within .5 Miles of the Center of Downtown

Retail Trade

WI Average

Downtown Employment by Sector

3%

5% 5%6% 6%

14%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Finance and Insurance

Within .5 Miles of the Center of Downtown

Finance and Insurance

WI Average

Downtown Employment by Sector

8%

11%

8%

7%

9%

13%

7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Health Care and Social Assistance

Within .5 Miles of the Center of Downtown

Health/Social AsstWI Average

Downtown Employment by Sector

12%

10%

7%7%

4% 4%

12%

0%

2%

4%

6%

8%

10%

12%

14%

Pop. 1,000-2,500 Pop. 2,500-5,000 Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Educational Services

Within .5 Miles of the Center of Downtown

Educational ServicesWI Average

Downtown Employment by Sector

9%8%

10%10% 10%

9%

7%

0%

2%

4%

6%

8%

10%

12%

Pop. 1,000-2,500

Pop. 2,500-5,000

Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Accommodations and Food Service

Within .5 Miles of the Center of Downtown

Accom & Food ServicesWI Average

Downtown Employment by Sector

2%

3%

4% 4%

6%

7%

10%

0%

2%

4%

6%

8%

10%

12%

Pop. 1,000-2,500 Pop. 2,500-5,000 Pop. 5,000-10,000

Pop. 10,000-25,000

Pop. 25,000-50,000

Pop. 50,000-100,000

Pop. Over 100,000

% o

f Tot

al E

mpl

oym

ent

Downtown Employment in Wisconsin Cities/Villages% in Professional, Scientific and Technical Services

Within .5 Miles of the Center of Downtown

Professional, Scientific, and Technical Services

WI Average

Downtown Employment by Sector

• Downtowns are important employment hubs.

• Downtowns have a diverse employment mix. • If economic development is about leveraging the assets that currently exist in

an area, then downtown’s role as an employment center must be recognized.

• Many of our downtowns have the ability to be a catalyst for local job growth. • Programs and spaces to support entrepreneurship • Labor force can be groomed at downtown educational institutions• Physical proximity allowing for innovation through face-to-face meetings• Downtown’ central place supports sustainability.

• With more new jobs downtown, pedestrian traffic will follow and support vibrant retail stores, eateries and environment we all want to see downtown.

http://fyi.uwex.edu/downtown-market-analysis/

Downtown Employment - Discussion

For More Information

Bill RyanUniversity of Wisconsin-Extension

Center for Community Economic Development610 Langdon Street, Room 329, Madison, WI 53703-1104

Phone 608-263-4994bill.ryan@uwex.edu

JD MilburnWisconsin Main Street, Economic and Community Development Dept.

Wisconsin Economic Development Corporation (WEDC)201 W. Washington Ave., P.O. Box 1687, Madison, WI 53701

Phone 608-267-2252john.milburn@wisconsin.gov