COVER STORY, MAY 2011

RETAIL RETENTION ESSENTIAL
Economic development relies on it, as well as expansion.
C. Kelly Cofer, CCIM

Cofer

Retail retention and expansion are just as important as retail recruitment when it comes to the long-term economic strength of a community.

Local retail business owners play a vital role in their home community. As their business succeeds, their contributions to the quality of life and overall economic health of the area increase.

Existing retail businesses are major contributors to the local tax base. Their success leads to increased revenue as well as job growth. Additionally, these business owners are ambassadors who present a positive image for new retail and business recruitment.

By implementing an aggressive Retail Retention and Expansion Program, you send a proactive message to your existing businesses that your organization is fully vested in their future.

A well-executed program can eliminate potential job losses and the detrimental effect of the lost payroll from those jobs. Retained retail businesses have greater potential for expansion, and employees from retained businesses are ideal candidates for start-up businesses in the community.

A successful Retail Retention and Expansion Program begins with a plan of action based upon attainable goals and objectives set by your organization’s volunteers and staff. Organizational support activities defined by the plan should be community-specific and encourage interaction with local retail businesses.

Obvious goals of the plan are to help local retail businesses remain stable and to grow. However, the growth does not only mean a brick and mortar addition. Growth is also financial. An organization’s objectives and support activities can focus on helping existing businesses increase demand for products or services; address and improve customer service issues; identify emerging consumer demands and trends; or expand sales through eCommerce.

An important step in the plan is to define the audience by developing a current Retailer Inventory database that includes information about all retailers in the area such as the contact person; address; phone; email; website; products/services; and number of employees.

Organizations should also have a Retail Trade Area Profile that contains information on the retail trade area of the community including demographic profiles; planned infrastructure additions/modifications; and local government and chamber contacts. This information needs to be readily available to current and prospective businesses.

Additional organizational support and outreach activities that have been effective in communities include:

Economic Outlook Sessions

Breakfast/Lunch with the Mayor

Retail Business Seminars and Workshops

Awards and Recognition
Programs

Business Visitations and Surveys

Retail Leakage/Opportunity
Analysis

“Shop Local” Programs

Retail Trade Area Demographics

Implementing a consistent schedule of results-oriented activities will support a successful Retail Retention and Expansion Program, which is essential to your community’s economic development.

— C. Kelly Cofer, CCIM, is president and chief executive officer of The Retail Coach, a national retail recruitment and development consulting firm. He has more than 25 years of experience.

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