ICSC RECon convention common area

This year, the mood, pace and tone of RECon (the International Council of Shopping Centers annual Retail Convention in Las Vegas) is palpably different. Whatever the economists say, the winds have shifted in the development and tenanting side of retail. A few observations from days 1 and 2 of the show:

People are dressed for success. Gone is the recent trend of more casual wear… far fewer attendees this year are in khakis and a golf shirt. And jeans? Unless you’re from Texas and wearing them with the requisite boots, sport coat and belt… no. In the easy days, a few years ago, the mood was different. There would always be more deals; there was plenty of retail to go around. Today. everyone seems to understand that while retailers are beginning to plan new stores again, fewer deals to do overall means you better work what you’re selling. And look like the recession didn’t kill your business and wreck your balance sheet.

Shows cost money and time is money. People are focused this year. Tight schedules, business-like attitudes and less chit-chat seem to be the rule. The economy has forced developers, retailers, brokers and cities to carefully consider the cost of attending the convention and how best to maximize the return on the investment. For instance, our day yesterday started with a coffee meeting at 8:30 and ended after a dinner with clients that wrapped at 9:30. No breaks in between… I finished the night in the same outfit I wore to the first meeting of the day. Lunch was a free fruit and walnut salad from the McDonald’s booth and a free hot dog from Thor Equities booth (thanks to you both!) eaten leaning against a pillar on the show floor.

Cautious optimism is the new normal. Developers we’ve talked with about sites in our client cities (the “Marketing Places, Spaces… part of our company) have been universally cautiously optimistic. We’re hearing, “[retailers] are beginning to plan new stores and think about the future, but everything matters on every site.” In other words, with so many sites out there and fewer stores to take them, only the sites that truly suit the purpose, generate return, have the access and amenities desired and where the development process is swift and simple are making the cut. Many retailers who in the past would build 50 stores a year and now looking for the 5 to 10 best sites for 2012 sites.

I think it’s been one of the most productive ICSC shows I’ve attended and I am looking forward to the hard work after the show of changing interest into announcements. I’m cautiously optimistic that the next year in retail is going to be a good one.

Some of you know that about half of my consulting-side work is in economic development for cities and site owners. Mostly retail, but we also help cities attract new residential and industrial/office development as well. It’s work I love because if I do my job well, a corner of the world is a better place when I’m through… the new businesses increase the tax base, allow cities to provide additional services for residents, provide access to goods and services within a community (less driving, less sprawl) and provide employment. We also work with client communities to facilitate public involvement, manage public perceptions and effectively use public relations to promote positive developments.

For retail attraction, the biggest show of the year is the International Council of Shopping Centers (ICSC) annual convention in Las Vegas, a show we attend every year. I spend most of April and May preparing for the show, updating marketing pieces, research, white papers, graphics, etc., etc., so we’re armed and ready. Typically, several of our clients attend the show with us, so we’re “on” from the moment we hit the airport until the moment we actually get into our car to drive home from the same airport 4 days later. It is the most exhausting experience next to childbirth. And it usually takes me fewer days to recover from childbirth.

The show is 3 hard days of pressurized meeting, rounds of receptions and engagements, and an INSANE amount of walking. Needless to say, I don’t wear my high heels. We hope to come back with new client leads for our services, new interest in sites in our client communities, and closed deals on other parcels or lots already in process. Even in this hyper-connected world of ours… the hard work in this arena still gets done face-to-face. Priceless connections are made, relationships renewed and business furthered. While the trip is a major expense and emotional drain, it is the single most important and effective event in our year.

Why am I telling you all this? I’m begging your forgiveness, in advance, for the break I’ll be taking this week from blogging. I probably won’t be coherent until sometime next week after returning late Wednesday from the show. And I hate to post incoherent ramblings on the blog. ;P In the meantime… if you all have something to say, just go on and post in the comments. I’m looking forward to hearing your trade show experiences and (shareable) Vegas experiences.

Perhaps, if you’ve found my site through PR, Marketing or Social Media searches, links or posts, you found this page and wondered how it all fits together. I love marketing places… economic development marketing is a specialty of mine. Telling the story of a place, for a particular purpose, helps to achieve goals that benefit the citizens who live there, the stakeholders invested there, the businesses who choose to locate there and the regional concerns connected to the primary place. In short, it’s marketing I feel good about doing.

Through our place marketing endeavors, I’ve gotten to know quite a few city councilors, city managers, economic development professionals, developers, retail site selectors and commercial real estate brokers. One former economic development professional, Rickey Hayes, opened his own retail consulting business two years ago and has experienced phenomenal success since then. His approach benefits all the parties involved in retail recruitment and generates results. I’ve been working with him, supplying data, marketing materials and helping to tell the stories of his client cities for the past couple of years and I’m proud to be part of the Retail Attractions, LLC, team.

If you know me personally, or follow me closely on facebook or Twitter, you know I am passionate about what I do. I wanted to introduce you to someone else who is equally passionate about helping cities achieve their visions in economic development and retail recruitment. And now you know how that whole economic development thing fits

After attending this week’s past Oklahoma Municipal League conference and trade show (for those of you who don’t know, many of my clients are cities), I realized anew how desperately many places, and the people who manage them, need some help branding effectively.
In some ways, branding a place is much like branding anything else…

• You need a good visual identity. One that promises something valuable to your intended audience.
• You must effectively communicate the promise to the audience.
• You need to deliver, consistently, on that promise.

What you say about your place is marketing. What people think about your place is branding. When I see a city manager’s business card produced in house and printed on donated paper at the least expensive price point possible, with a “logo” that consists of a divided shape of some sort with each quadrant filled by some hallmark of place history, I shudder. Again. What is the promise?
The promise seems to be that the city will remain as it has always been, and will be resolutely backward-looking. With what audience will that promise resonate?
Probably not a real front-runner for attracting new residents nor new businesses.
Let’s throw in a poorly designed, out of date city web site and no real attempts at good PR, meaningful collateral designed to attract new residents or businesses… and the entire image (brand) says, “We don’t pay attention to details. We aren’t forward-thinking. We won’t invest in technology, information or tools to help us do our jobs.”
Wow… can you see why I shudder? The problem of poor city branding is not unique to Oklahoma by any means; the net is full of examples. And I do understand, intimately, the desire to satisfy multiple groups/interests in a city logo and the need to “respect our history.”
Here’s a bit of truth about history… every town has one. Unless yours is truly unique, it isn’t a brand promise. And most towns of any age boast “an historic downtown,” too.

Take a good look at most city logos. Most look like they were designed by a committee (chopped up into pieces, everyone gets to stick their idea in the logo) because they were. If cities want to promise residents and businesses progressive leadership, commitment to excellence, vision, growth, infrastructure (whatever your list is), it’s time to lose the circle logo featuring water, oil, industry, and a flag. That generic formula applies to many, many city logos. Don’t be generic.
If you’re not sure where to start, or how to undertake a rebranding without alienating stakeholders, I can help.

When Richard Florida wrote in 2002 that,

“Place has become the central organizing unit of our time, taking on many of the functions that used to be played by firms and other organizations.”

He was making a case that what you could DO in a place would be people’s first consideration before moving there (and then finding a job). And I agreed… the economic development arm of my business is built on the foundation that adding amenities that residents want and desire (shopping, dining, parks & recreation, education opportunities, culture) leads to long term economic health and growth. If talented people want to live in a place, companies will go where the talent is.

I’ve been thinking… perhaps Florida’s definition of “place” is too narrow, though, to apply to today’s socially-connected world. Perhaps the new organizing unit is knowledge…. where it lives, how its found and accessed, and then how it can be acted upon. Maybe now it’s all about what you can do in a SPACE rather than in a PLACE.

Today’s spaces are not defined so much by walls or physical boundaries as they are self-sorted, self-elected affinities. I am part of several “spaces” online and also offline, nearly all of which I’ve chosen belonging.

Interestingly enough… marketing up until very recent times was based almost entirely on those spaces we CANNOT choose or have limited control over… my gender and age, for instance. As marketing shifts toward “engagement” and “conversation” it better also shift the basis to those affinities we choose. The spaces to which I’ve chosen to belong are a far more powerful way to connect.

What spaces, physical or not, are Florida’s Creative Class inhabiting now? How will companies find them? Does physical place still serve as our primary organizing unit and a defining characteristic?

(Quote from pg 6 of “The Rise of the Creative Class”)

Co-authored by Rickey Hayes and Mandy Vavrinak

More and more cities and communities are realizing that growing their retail base wisely is an integral part of any balanced and long-term economic development strategy. Not every city can support extensive retail; overbuilding in some categories and areas has contributed to today’s economic woes in the retail sector. However, many areas are still significantly underretailed and opportunities exist for both savvy cities and smart retailers. Since fewer retailers are moving in this challenging environment, competition for those new projects and locations is fierce. How can a city help get its name on the expansion list? Here are some tips we’ve found to be effective as we help cities recruit new businesses:

1. Believe in and utilize public/private partnerships. Cities can assemble land, provide needed public infrastructure and ensue the development process is as pain-free and efficient as possible. Now is the time for innovate approaches to incentives and improving internal processes.
2. Know your city/sites well, from a development perspective. What would make them attractive (or not) to a particular retailer? Does the site fit the retailer’s criteria?
3. Get your demographic house in order. Using the numbers from the last census is NOT providing current, actionable information for the site selection process. Numbers generated via internal studies (not independently verifiable) are also not helpful. Use a reputable source for solid demographics based on a reasonable trade area.
4. Understand the development process from the development side. Knowing how to work with site selectors, brokers, developers, leasing agents and retailers is crucial to ensure a smooth process and positive outcome.
5. Craft a marketing position and use it. If your city logo/motto reflects 150 years of history but not where you’re headed, or what new residents or businesses can expect in the future, you’ve missed an opportunity to shine. If your web site looks like an internal project, you’ve missed another one. Cities selling themselves need the same tools as other companies with products to sell… good logo, solid identity, good product information, great marketing vehicles to share it all.
6. Own your own economic development efforts. Chambers of Commerce, industrial development authorities, and other quasi-governmental bodies cannot “pull the trigger” on projects, yet the decision-making process and the ability to get things done in a consistent manner is an integral part of economic growth and development.

It’s not easy to get noticed by national retailers and other site selectors, but using these tips will help your community put its best foot forward and increase the chances you’ll get a shot at new business expansions or developments.

Cross-posted at NAI Commerce One blog and at citiesofvision blog.

Rickey Hayes is the principal of Retail Attractions, LLC http://www.retailattractions.com, a firm dedicated to helping cities and developers successfully find retail sites, close deals and improve the quality of life for our client cities. Mandy Vavrinak is the principal of Crossroads Communications, LLC, http://www.crossroadscommunications.com, a firm dedicated to effectively marketing places and spaces and specializing in working with retailers and cities. They’ve successfully partnered on a number of projects, attracting more than 6 million square feet of retail to the right locations over the past 6 years.