Retail Mix Case Study By Larry Kilduff

Welcome to Experts OnlineAugust 1, 2006

Creating the Right Retail Mix:Creating the Right Retail Mix:Can small neighborhood businesses Can small neighborhood businesses and national chains coand national chains co--exist?exist?

Who are the Experts?

Joe GetzGeneral Partner, JGSC Group, LLC

Larry KilduffPresident, The Kilduff Company

Creating the Right Retail Mix

Joe Getz

Do national chains hurt small neighborhood businesses ?

Or do small neighborhood businesses hurt themselves?

Can’t we all just get along?

Of course we can.

Survival of the fittest.

The market decides what survives.

Sometimes we hurt ourselves

Creating the right retail mix.

What type of corridor is yours?The type of retaileris determined (in part)by the type of corridor.

Describe your corridorNeighborhoodCommunityRegionalTourismBusinessEntertainment

What type of consumer is here? Knowing who shops here and what they want, helps determine which retailers work best.

Who shops here? Why?

Who’s missing?Why?

What storesdo consumersmost want?

Consumers, in part, helpdetermine the right mix.

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AC M oore Barnes & Noble Best Buy Borders GAP Kohl's Target Wal-M art Whole Foods

Average of all responses

What can the market sustain?You have to do a (proper) market analysis.And, you haveto read it.Retail dynamicsare fluid, so theanalysis is outof date as soonas you use it.Nationals willwant to seethe results.Locals shouldwant to, too!

Trade area sustainabilityDemographics

Psychographics

Consumer Spending

Supply & Demand

Over/Under Served

JGSC PowerGRID™(Hey, don’t steal this!)

Once you know what,it’s easy to know who

Create a merchandise plan for the corridor.Don’t justfill space.Nationalshave criteria.Localsshould too.

Formula for success:Give them what they want.

Show themyou havewhat they want.Create a buzz.Give them theinformation theyneed to makethe decisionyou want them to make.

Let’s work together.Let’s work together.Nationals can and should compliment locals.

Local can and shouldcompliment nationals.

Nationals manage,locals retail.

All should participatein cooperative marketing.

The goal: work togetherto improve the quality of lifefor all shoppers.

Lessons learned.Lessons learned.We need learn from our past mistakes.

Leases

NNN

Use clause

Materials

Hours ofOperation

Strike a balance.Strike a balance.Most commercial corridors can support a balance of different retailers.

Locals need to be strong to avoid being crushed.

Franchise stores can provide additional support.

Case StudyLarry Kilduff

Kenosha, WisconsinKenosha, Wisconsin

11019 N. Towne Square Rd., Suite 8Mequon, WI 53092

262-240-0045 Fax: 262-240-1057www.thekilduffcompany.com

PO Box 628Middleton, WI 53562

608-345-9858www.PRDCInfo.com

The Location

• 40 miles south of Milwaukee, WI

• Community center serving the Uptown Neighborhood, approximately, 3 square miles.

• Located in the Uptown Neighborhood at 63rd Street and 26th

Avenue in Kenosha, WI.

The Original Brass Factory

The Brass Factory Today

Contamination Issues from a Developer’s Perspective:

•How long until the site is ready for development?

•What are the liability protections?

•Do those protections satisfy lenders? Investors? Users? If not, what next?

•Coordinating clean-up with development realities.

The Site Plan

• Mixed-use urban re-development

• 113,500 square feet of retail space

• Outlots available

• Parking ratio 5:1

The Vision…

Revitalized Urban Environment…

Mixed Use is Great, but Complicated…

Thank you

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