Guest Column: Neighborhood retail makes comeback

During the past 50 years, the commercial development industry has followed rooftop demographics as they moved farther out on the edges of town. New retail developments entice customers from the older, more urban parts of town to come on out and try something new. But things are about to change.

Before we look ahead, let’s take a look back.

Pre-1950s

Before the 1950s, people used to simply shop at neighborhood markets. There was really no other practical choice. Back then, stores were very specialized, and an actual butcher cut meat to order, a baker made the bread, and a clerk took the money. The automobile changed everything.

Through the years, the enemy of this kind of “livable, pedestrian-oriented commercial center” has been the motor vehicle. Transportation to and from home has become much easier, so people have found jobs farther away from home, or they’ve chosen to live in homes farther away from their jobs.

The need for neighborhood services evolved to the additional need for large arterial streets, gas stations and supermarkets anchoring a strip centers located in major commercial intersections. Life was good.

The next evolution

With movement toward sustainable design and livable communities, the retail scene is facing the latest round of change. Compound this movement with the current economic shift, along with recent pullback announcements in the retail sector, and the retail industry arrives at a critical juncture.

Developers and retailers need to start developing concepts to serve the needs of neighborhoods. Some already are. Tesco’s Fresh & Easy and Wal-Mart Neighborhood centers are examples – the basis for their design is also to be a small footprint, positioned closer to the places where people live.

More examples will be seen of tenants working strategically together to bring more of the same customers to their doorsteps. A recent example in Springfield is Green Circle Shopping Center, which has as tenants: Mama Jean’s Natural Foods, Swig, Dynamic Earth and Dynamic Bodies – all of which are in the “well-being” business. Further articulating the tenants’ core values is the effort to pursue Leadership in Energy & Environmental Design platinum certification. The synergy built among the tenants and the ecologically friendly building is bound to be a home run.

Local folks also will see more of the original neighborhood centers revitalized.

The key players

To compete in the changing retail sector, different interest groups will need to bring specific attitudes to the table.

Retailers need to develop new store formats with merchandise more tailored for a particular customer base. Stocking items that are requested in a particular neighborhood will be a big hit and will keep customers loyal.

Developing smaller, more customizable versions of existing stores will open up lease options and bring them closer to customers.

Developers need to take a second look at existing second- or third-tier shopping centers. Those can be used to provide more and better neighborhood services tailored to the needs and desires of area residents. Grouping a small number of symbiotic neighborhood necessities such as grocery, deli and hardware in one center will drive more traffic and increase convenience.

New residential developments also could begin incorporating this style of thinking (built-in commercial districts with neighborhood shops and office space where residents can work) as well as possible agricultural areas for locally grown vegetables, flowers and other similar amenities and benefits.

Government has a role as well – reviewing zoning issues, pedestrian, bike and transit access, and encouraging higher densities for shorter travel distances between home, work and shopping. Making shorter trips means it is easier to use alternative transportation, or at minimum, reduces the number of cross-town trips in the car.

Consumers already are thinking twice about driving all the way out to the closest megaretailer and are planning their trips and itineraries more carefully.

They want more personalized service, and in many cases are willing to pay a premium for convenience and service combined.

Opportunity knocks

So, next time you leave your house to go buy something, look at a one-mile or two-mile circle on a map and ask: “Can I get this product or service within a mile or two of my house?” If the answer is no, that presents a retail opportunity for that neighborhood – and maybe that business opportunity is yours.

Bruce Adib-Yazdi is an architect and vice president of retail and entertainment with Butler, Rosenbury & Partners Inc. in Springfield. He is an International Council of Shopping Centers Certified Design Professional and may be reached at badib-yazdi@brpae.com. [[In-content Ad]]