This document provides an overview of strategies for developing retail in Rochester, New Hampshire. It begins with introducing retail strategies and identifying locations for development. It then discusses the importance of understanding consumer segments, trade areas, and leakage analysis to identify retail targets. The document also provides examples of retail developments in Rochester and benchmarks other communities' downtown retail strategies. Overall, it advocates for a data-driven approach to retail development and maintaining efforts to retain and attract businesses.

1. Retail
in the land of
“Unspoiled
Splendor”
Economic Development

2. 2
Retail Strategy Poll
Does your city/county organization
have a retail strategy?
• Yes, for more than 10 years
• Yes, for more than 5 years
• Yes, less than 5 years
• Just adopted, or close to adopting
• In the strategy development process
• No, but plan to in the future

3. 3
Introduction
•2014 Population 29,830,
4.67% growth since 2000.
•Median home $170,000.
Appreciation in LY 8.7%.
•Rochester’s Cost of Living
Index is +14.20% higher
than U.S.
•Unemployment 3.9%, (U.S.
avg is 5.7%, NH avg 4.3%)
•Recent job growth is
positive, Rochester jobs
have increased .88% TY
Karen Pollard,
CEcD, EDP
ICSC Shopping
Center University
+30 Years in Retail
& Economic
Development
Karen.pollard@rochest
ernh.net
NO SALES TAX
NO STATE INCOME TAX
HIGH VISITOR INDEX
HIGH # SECOND HOMES

4. 4
Why a Retail Strategy?
• #1 - Increase tax base
– Maximize development
• #2 – Diversify employment
• #3 - Eliminates “leakage”
– $1.734 Billion
• Consumer demand
– Population growth
– Sophisticated Consumers
• Attracts visitors & business
customers
– Untapped market
• Amenities for the regional
population
– Restaurants, stores, services
– Demand diversity of chain &
independent
• Reduces the need to travel
– Traffic, environmental

5. 5
Lands of Opportunity
• Identify Locations
(like a Site Selector!)
– Buildout Analysis
– Assess infrastructure
– Traffic Study
– Zoning & Permitting
– Have a Plan B
• Partnerships
• Rochester Crossing (Wilder Co)
– +600 employees
– 100% leased
– Valuation $24,669,700
– $650,293 new annual revenue
Before - 2008
After – 2012

6. 6
Retail Location Poll
Has your city/county organization:
• Identified a specific location or district
for retail?
• Modified zoning or permit
requirements to be “friendly” to retail?
• Trained professional staff committed
to support retail growth?
• Invested in utility expansions and
infrastructure to support retail?

7. 7
You Need Business Intelligence
• Target Retailers
– Make a List
– Research them
– Talk to existing
retailers (status)
• Know what they want
– Not just what you have
• Know how decisions are
made
• Give them data about their
customers in your area
• Do a Retail Analysis
• Identify the Trade Area
• Become an expert on
your trade area
• Identify the Customers
• Identify sites with
maximum potential
• Develop a Retail Team
• Training & Practice
• Strategy for retention &
attraction

8. 8
Think Trade Areas
How long and where do people commute?
How long/far will people drive for groceries?
For medical care? For a wedding dress?
For a special dinner? For an everyday meal?
Political Boundaries
Drive Time Polygon
Regional Map

9. 9
Who Are the Consumers in Rochester, NH?
Dominant Segments Description Households % of All Households
D15 Sports Utility Families 935 5.03
E21 Unspoiled Splendor 1,180 6.34
F23 Families Matter Most 658 3.54
H29 Destination Recreation 1,025 5.51
I30 Stockcars and State Parks 791 4.25
I31 Blue Collar Comfort 687 3.69
K40 Bohemian Groove 596 3.20
L42 Rooted Flower Power 665 3.58
L43 Homemade Happiness 829 4.46
M44 Red, White, and Bluegrass 880 4.73
N47 Countrified Pragmatics 1,492 8.02
O51 Digital Dependents 934 5.02
Q64 Town Elders 1,193 6.41
R66 Dare to Dream 628 3.38
S70 Tight Money 649 3.49

10. 10
Data Driven Site Selection
0%
2%
4%
6%
8%
10%
A01
A02
A03
A04
A05
A06
B07
B08
B09
B10
C11
C12
C13
C14
D15
D16
D17
D18
E19
E20
E21
F22
F23
G24
G25
H26
H27
H28
H29
I30
I31
I32
I33
J34
J35
J36
K37
K38
K39
K40
L41
L42
L43
M44
M45
N46
N47
N48
N49
O50
O51
O52
O53
O54
O55
P56
P57
P58
P59
P60
P61
Q62
Q63
Q64
Q65
R66
R67
S68
S69
S70
S71
Percentage
Segments
60 Farmington Rd
Dominant Segments Description Households % of All Households
D15 Sports Utility Families 935 5.03
E21 Unspoiled Splendor 1,180 6.34
F23 Families Matter Most 658 3.54
H29 Destination Recreation 1,025 5.51
I30 Stockcars and State Parks 791 4.25
I31 Blue Collar Comfort 687 3.69
K40 Bohemian Groove 596 3.20
L42 Rooted Flower Power 665 3.58
L43 Homemade Happiness 829 4.46
M44 Red, White, and Bluegrass 880 4.73
N47 Countrified Pragmatics 1,492 8.02
O51 Digital Dependents 934 5.02
Q64 Town Elders 1,193 6.41
R66 Dare to Dream 628 3.38
S70 Tight Money 649 3.49

11. 11
Purchase Behavior
Lifestyle Characteristics Index
Recently Purchased a Riding Lawn Mower 480
Drive Domestic Sporty Cars 306
Recently Purchased Hunting Clothes 251
Watch the show How I Met Your Mother 215
Use the brand Neutrogena 210
N47: Countrified Pragmatics
Lifestyle Characteristics Index
Belong to an Environmentalist Organization 205
Visit fishing websites 198
Watch How-To or DIY TV shows 171
Have a Graduate Degree 167
Drive a Hybrid Car 153
E21: Unspoiled Splendor

12. 12
Dunkin’ vs. Starbucks
• How much is too
much?
– Dunkin’ came in for
their 9th location
– Planning Board
anxiety
• Starbucks
– Nov 2008 to April
2009

13. 13
Be a Destination – Own Your Strengths!
• Vehicle Dealers & Parts 110%
– Dealers +$5M
– Other MV Dealers +$28M
• Building Materials & Garden
Equipment 110%
– Home Centers +$15M
– Hardware +$7M
– Power Equipment +$3.4 M
• Food & Beverage Stores 120%
– Supermarkets +$77M
– C-Stores +$12M
– Specialty Foods +$1M
• Other Sub-sectors
– Florists +$2.4M
– Gifts & Souvenirs +$300K
– Specialty Foods +$1M

14. 14
Retail “Leakage” = Opportunity
• Leakage Report X Purchase
Behavior = RETAIL TARGETS
• $3B Potential/$1.3B Actual
Furniture & Home Décor -85% -$70M
Electronics & Appliances -80% -$76M
Health Care Stores -45% -$14M
Clothing & Accessories -80% -$198M
Sporting Goods, Hobby, Book & Music
Stores -70% -$65M
General Merchandise -67% -$114M
Misc. Merchandise Stores -65% -$80M
Food & Drinking Places -75%-$209M

15. 15
Plan to Work –Work Your Plan
• “Buy-in” for Strategy
• Invest in Tools
• Recruit a Team
– Training
• “Brand” your materials
• Trade Shows
– Be where your targets are
• Events & Awards
– Host, Sponsor, Participate
• Follow Up, Follow Up and
Follow Up

16. 16
Be Prepared to Work Hard

17. 17
Benchmarking

18. Granite Ridge Development District
• Zoning Unified & Adopted
2009
• Capacity for 2 Million
Square Feet of Dev.
• $3B Demand for Amenities,
Services & Entertainment
• Waterstone Development
Leasing 300,000 ft2 –
51,000 ft2 still available
• Now Leasing 50,000 ft2
(CBRE – former Thompson)
• Tax Increment Financing
$5 Million Phase 1
1995 Value $28,145,137 186,372 ft2
2013 Value $62,326,773 +121.45%
Annual Rev. $1,642,934 594,316 ft2
2030 Est. Val $222,179,930 +271.89%
Annual Rev. $3,137,580 2,210,220 ft2
Holiday Inn, Granite Ridge

19. 19
The Ridge – Waterstone Retail
• Entertainment based
center, 130 acres
• Phase 1, 300,000 ft2
• Movie theater,
restaurants, retail
• Phase 2, 60,000 ft2
• Est. $30 Million tax
base
• Est. Employment 800
Before 2014
After 2016

20. 20
Downtown Retail Poll
• Does your community desire Downtown retail?
• Do you have a strategy or master plan?
• Are your current retailers engaged?
• Do you have ways to overcome the obstacles?

21. 21
What to do about Downtown?
• Step 1 – 3 months
• Business Retention Program
– 1 on 1 Visitation
– Resource Team
• Step 2 – 5 months
• Create comprehensive
program & pitch to Council
– Short & Long-term goals
• Step 3 – 8 months
• Implement projects &
programs
• Step 4 - Report out
• Maintain successful elements
Downtown Rochester
Business Retention Plan 2008

22. 22
Retention Visit Results
• 65% “on the edge”
• Not Adapted Over Time
– Inventory
– Technology
• Unprepared Financially
• Lack of Planning Overall
• No Emergency Preparedness
• Expectation to go “Back to
the Way it Was”
• Each participant received a
free customized suggestion
plan and resource packet
Scholarship Program for Training
Entrepreneurial Bootcamps
Social Media for Businesses
SBDC 1-on-1 meetings re: financial
issues

23. 23
Downtown Destination Plan
• INCENTIVES
• 7 NEW Downtown Events
• Main Street Program & FT Manager
• Business Guide & Map
• Active “Shop Local” Program
• Downtown Dining Program
• Monthly drawings & contests
• Co-op ads in various outlets
• TV Commercial targeting young
professionals
• Decorating Contests for store
windows Pirates of the Cocheco
Business Retention Plan 2008

24. 24
One-by-One
• One building owner
• One tenant
• One challenge
• One success
• Battle of inches
• No Shortcuts
• Measure every
improvementNational Comic Book Day
2014 attendance 5,000 ppl
Revolution Taproom
October 2014

25. 25
Downtown Attraction Strategy
• Develop a Downtown
Target List
• Attraction Packages
– Specific Challenges
• Real Estate Open House
– Tours of Available Space
• Landlord Groups
• Referral Systems
• Entrepreneurial
Support Programs