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 Old
Fashion Values:
How Downtowns Can Compete with the Giants — and Win!
By Doyle
G. Hyett & Dolores P. Palma
HyettPalma, Inc.
Making Downtown Renaissance a Reality
In retail business
today, the stakes are high. With over $2,000,000,000,000 — that’s
two trillion dollars! — spent on retail products in this nation each
year, this segment of our economy is critical to the well-being of every
city and town in America.
Downtowns,
once the centers of retail trade in their communities, have lost a significant
portion of America’s retail sales over the past four decades. With
two trillion dollars at stake, we must ask “How can our Downtowns
and their businesses once again capture a respectable share of the retail
dollars spent in this country?”
For the
past four decades, most of America’s Downtowns have become lost and
misguided. Instead of evolving with the times, while continuing to do
what they do best, Downtowns lost ground by trying to be just like the
competition. Downtown pedestrian malls were built, large Downtown parking
lots were constructed, Downtown business owners offered the same retail
goods found at local malls. And all this was done only to learn a hard
lesson —
Downtowns
and their businesses
can’t compete head-on with the giants and win.
Instead,
Downtowns that have made successful comebacks have done so by returning
to old-fashioned values — those things that Downtown and its businesses
can do better than the retail giants.
Create
Your Niche
Rather than waiting for the market to find them, the most successful
Downtowns and Downtown business owners are those making a concerted effort
to understand and respond to their markets. Through solid and pragmatic
market research, these Downtowns and their business owners purposely determine:
- Which
customer groups to target;
- What
types of businesses are most likely to attract these customers; and
- How
to create distinct districts within Downtown that offer customers variety
and convenience — therefore turning their targeted customers into
repeat customers.
It all
boils down to creating a clear market niche for Downtown and its businesses.
Knowing that market niche means understanding your “reason for being.”
After all, if Downtown and its retail businesses don’t know their
reason for being — what makes them stand out from the Giants in a
crowded marketplace — how can they attract customers?
 Adjust
Your Attitude
Attitude, some say, accounts for the success or failure
of 75% of all Downtown revitalization efforts today. And, the most successful
Downtown enhancement efforts and businesses are those that take on a positive,
proactive, pro-customer attitude. On the part of Downtown business owners,
being pro-customer includes:
- Keeping
store hours that are convenient for the customer, as opposed to hours
that are most convenient for the owner;
- Hiring
staff who are “people people,” rather than those who are just
salespeople — understanding that helping customers solve their
shopping problems will make them loyal, repeat customers; and
- Seeing
that business owners and their employees don’t monopolize on-street
parking spaces which are most convenient for their customers —
instead, pro-customer owners require their employees to leave these
spaces free for customers, and also follow this policy themselves.
In terms
of an overall Downtown enhancement effort, being positive and proactive
requires that a “community attitude” be created. This entails
defining an image for Downtown — how it will look, the economic roles
it will play, who it will serve, and what it will be known for in 5 to
7 years — that is both preferred by the community and economically
viable. Then, a “can do” attitude must be adopted by leaders
in both the private and public sectors. And, these leaders must make the
long-term commitment to work together in order to attain the preferred
and economically feasible Downtown image.
Return
to Tradition
For the most part, Mom and Pop small business owners have
been, and still are, the backbone of most American Downtowns. At the height
of Downtown’s success, these family businesses were operated with
certain traditions that added to their success. Those traditions, largely
forgotten by many of today’s small retail business owners, include
the following.
- Quality
for Money — Smart Mom and Pops know that “value”
does not mean “cheap.” Instead, it means offering customers
quality products at reasonable prices so they feel they’re getting
good value for their money.
- Dependability
— Being present in their stores, Mom and Pops can offer their customers
a dependability and peace of mind not commonly offered by chain stores.
Mom and Pop’s customers can rely on these owners to remember them,
take care of them, and stand behind their products after the sale is
made.
- Personalized
Customer Service — By their very nature as small business owners,
Mom and Pops can provide a level of personalized customer service that
chains are hard pressed to achieve. Personalized customer service includes
taking the time to get to know your customers and their preferences,
finding ways to make it easy and convenient for them to shop with you,
and taking actions that ensure their long-term satisfaction with your
business and its products.
 To
Your Own History Be True
Many communities have found that their Downtown’s
older buildings — the historic and architectural elements of their
past — are assets which can be leveraged to build their economic
futures. These communities save, preserve, use — and find new uses
for — their old Downtown buildings as a way of creating Downtown’s
unique and memorable niche. In fact, using history to attract investors
to Downtown has been so successful that some of the most valuable commercial
real estate in the country today is rehabilitated historic Downtown buildings.
So,
Can Downtowns Successfully Compete with the Giants?
The answer to this question is an emphatic YES! However,
rather than seeing themselves as competing, successful Downtowns view
their quest as determining how to best coexist with retail’s giants.
And, the most successful Downtown business owners understand that the
“competition” does not stand still but is ever-changing —
and that they must evolve, too, or customers will pass them by.
About the Authors
Doyle G. Hyett and Dolores Palma are the
founders of Hyett Palma, Inc., the only national consulting firm specializing
in the economic renaissance of Downtowns and older business districts.
Since being formed in 1985, the firm’s work has restored confidence
and stimulated private investment in hundreds of Downtowns throughout
all 50 states. In addition, HyettPalma provides all technical assistance
for the America Downtown® program (offered
by the National League of Cities) and the Indiana Downtown®
program (offered by the Indiana Association of Cities and Towns). For
more information about the firm, visit www.hyettpalma.com.
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