Discuss Detroit Archives - Beginning January 2006 "How Retailers Choose Where They Will Build Stores;" Mon., May 8; 6:00 pm; Adamany Library Previous Next
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Akoper
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Username: Akoper

Post Number: 1
Registered: 01-2006
Posted From: 4.229.99.159
Posted on Wednesday, April 19, 2006 - 8:50 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Cityscape Detroit presents its spring event. Patty Formosa of MapInfo will present:


"How Retailers Choose Where They Will Build Stores"


MapInfo is based in Ann Arbor, and a National leader in using cutting edge technologies like computers, GIS, databases and demographic data to tell retailers and restaurants the best places to locate stores. Fortune 500 companies like Home Depot, Kohl's, IHOP, Pep Boys, JoAnn Stores, Linens 'N Things, Denny's, and Napa pay them to tell them where to build new stores.

She will also tailor her presentation to Detroit and address:
- Why isn't there more retail in Detroit?
- What do retailers look for?
- What will it take to get more retail in Detroit?
- Are there any progressive solutions to the situation?

This event will take place Monday, May 8 at 6:00 pm in the Bernath Auditorium of the Adamany Library on Wayne State University's campus (5155 Gullen Mall, Detroit, MI, 48202).

Map: http://maps.yahoo.com/maps_res ult?addr=5155+Gullen+Mall&csz= Detroit%2C+MI&country=us&new=1 &name=&qty=

The public is welcome. There is a $7.50 suggested donation for non-members. Members are free.

Cityscape Detroit is Detroit's oldest and largest non-profit group devoted to good urban planning and design, historic preservation, architecture, greenspaces, mass transit, interesting streetscapes and urbanism. Our "built environment" affects us daily, and by improving these elements, Detroit will become a wonderful place to live, work, and have fun for all residents and visitors. For more information, go to www.cityscapedetroit.org
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Gistok
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Username: Gistok

Post Number: 2004
Registered: 08-2004
Posted From: 4.229.105.66
Posted on Wednesday, April 19, 2006 - 9:33 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Welcome to the forum Akoper!

I don't know the criteria for saying Cityscape is the oldest and largest.... but Preservation Wayne was founded in 1975, and has over 800 members. But it tends to focus on historic preservation over the other items you mentioned. So are we talking Apples and Oranges?? :-)

Sounds like a great seminar though!!
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Boo
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Username: Boo

Post Number: 125
Registered: 01-2004
Posted From: 68.72.244.70
Posted on Wednesday, April 19, 2006 - 9:56 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

i work for a company that does this for the automotive industry- i am going to have to come and see "how the other half" figure out where to put their stores.

sounds interesting.
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Ltorivia485
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Username: Ltorivia485

Post Number: 2562
Registered: 08-2004
Posted From: 199.74.87.98
Posted on Wednesday, April 19, 2006 - 10:10 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Please tell us what happens at the meeting (for those of us who are not in the Detroit area...).

I wouldn't be surprised if disposable income of the surrounding neighborhood is one of the factors involved. After all, Detroit is the poorest city.
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Gianni
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Username: Gianni

Post Number: 228
Registered: 05-2004
Posted From: 209.104.144.90
Posted on Wednesday, April 19, 2006 - 10:49 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

One thing I've heard is that when they use these computer models based on cerain criteria (income, number of BMWs, whatever) within a radius of so many miles of a proposed site, downtown Detroit and the Jefferson corridor, and anything close to the river, are shortchanged because the "circle" includes the Detroit river. Since no one lives there obviously, we never can pass the bean counters' test.

I always wondered how true that was. It sounds a little simplistic.
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Gannon
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Username: Gannon

Post Number: 5697
Registered: 12-2003
Posted From: 70.236.198.22
Posted on Thursday, April 20, 2006 - 12:12 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

The smart ones just wait for the others to open a location and use THEIR research money. Heh.

I mean, that's what I'd do...find a few stores that have a similar demographic...then bargain down the mall owner on those last few square feet they cannot seem to lease out!!
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Ltorivia485
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Username: Ltorivia485

Post Number: 2566
Registered: 08-2004
Posted From: 199.74.87.98
Posted on Thursday, April 20, 2006 - 12:17 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Detroit also has a crime problem...
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Gannon
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Username: Gannon

Post Number: 5698
Registered: 12-2003
Posted From: 70.236.198.22
Posted on Thursday, April 20, 2006 - 12:21 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

...yeah, but NOT in the river.

Hell, that should make the southern part of the CBD look even MORE appealing!
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Hysteria
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Username: Hysteria

Post Number: 81
Registered: 02-2006
Posted From: 152.163.100.8
Posted on Thursday, April 20, 2006 - 12:23 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Gannon is right ... you see that alot with retail chains. Crate & Barrel waits for Pottery Barn/Williams Sonoma to set up shop (used to be the other way around), same with Abercrombie & Fitch and Banana Republic/GAP, now I believe a once 'elite' retailer, Tiffany & Co., is following Zale's. Coming soon to a mall near you ... Tiffany & Co. It's too bad they are going after the middle class market with the heritage of their brand name being legendary.
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Eric
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Username: Eric

Post Number: 432
Registered: 11-2004
Posted From: 35.11.210.161
Posted on Thursday, April 20, 2006 - 12:28 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Not everywhere the city isn't monolithic in its level of crime. Some places are more than perectly safe for retailers to set up
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Thecarl
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Username: Thecarl

Post Number: 704
Registered: 04-2005
Posted From: 69.14.30.175
Posted on Thursday, April 20, 2006 - 12:29 am: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

The smart ones just wait for the others to open a location and use THEIR research money. Heh.




interesting, gannon. i have a friend whose family owned a large private grocery store chain in michigan. he told me it was common knowledge that fast-food outlets built near burger kings, because burger king did the best market research, and those who built nearby didn't have to pay for the work finding the sweet spots.
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Gannon
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Username: Gannon

Post Number: 5700
Registered: 12-2003
Posted From: 70.236.198.22
Posted on Thursday, April 20, 2006 - 12:44 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Burger King must make some unbelievable profit...but apparently they spend their money well. One of my client's has four locations up in Flint, and he is VERY well coined, so they treat their franchisees good, too.

We start NOW opening up healthy fast food joints near all the BKs...franchise the shit out of the Karmic Cafe concept...and we'll come out ahead after BK's customer base all drops from bad health.
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56packman
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Username: 56packman

Post Number: 212
Registered: 12-2005
Posted From: 24.208.234.52
Posted on Thursday, April 20, 2006 - 12:48 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Gannon-where did LaVan Hawkins go wrong? He had BK lounges all over the map.
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Gannon
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Username: Gannon

Post Number: 5701
Registered: 12-2003
Posted From: 70.236.198.22
Posted on Thursday, April 20, 2006 - 12:52 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

LOL, thanks, now I have to go wash up and change shorts.
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Bvos
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Username: Bvos

Post Number: 1405
Registered: 10-2003
Posted From: 66.238.170.39
Posted on Thursday, April 20, 2006 - 1:59 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Damn, that's my first class that night across the mall. I'd really like to attend this, but alas I won't be able to. Ironically it's a GIS class but using the competitor's product, ArcGIS.

One of the big problems with these software programs is that they are based on suburban assumptions of income, density, spending habits, transportation, etc. The U of M and the ICIC have done some good work on showing how urban markets have just as much or more spending power than suburban areas.
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Jsmyers
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Username: Jsmyers

Post Number: 1631
Registered: 12-2003
Posted From: 209.131.7.68
Posted on Thursday, April 20, 2006 - 2:23 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

BVOS,

I would meet the instructor in advance and I bet they would look favorably on you missing it if you made it up. You'd get a lot out of it concerning GIS applications.
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Detroitplanner
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Username: Detroitplanner

Post Number: 1
Registered: 04-2006
Posted From: 152.163.100.8
Posted on Friday, April 21, 2006 - 12:37 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Johnny, you're explaining a theory first introduced by Von Thuenen, then later refined by Christaller regarding Market areas and distances willing to travel. Back in the 1980's I was able to map all of the Farmer Jack Stores in the metropolitan area using this convention. There were a few exceptions, but I was able to figure out why and how those came to being.

As FJ started to open larger stores, they closed the smaller ones, really tilting the geography. They would have huge gaps in coverage, literally just giving up on markets not only in Detroit, but in Suburbs too. Where are all the Farmer Jacks in Livonia, for example? Just one, and its only a couple of miles from the City Limit at Seven and Middlebelt.

Well this explains only part of the picture, obviously there are other variables. Buying food is a basic need, everybody's got to eat. If your theory/model is true, then why are there two large Marshall Field stores in Downtown Chicago? Not having a complete circle sure did not hurt them. Of course density and desire have to be taken into account, as well as accessiblity to public transport.

Using your logic, the Eastern Market should have all high end stuff, yet it is accessible to all. I like it better the way that it is, no other city in the country has a market as extensive as ours, the only one that has one as original is Reading Market in Philly. Well I've digressed....
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Thecarl
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Username: Thecarl

Post Number: 717
Registered: 04-2005
Posted From: 69.14.30.175
Posted on Friday, April 21, 2006 - 12:56 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

another interesting feature of chain store locations: product mix. i have noticed that chain stores in the pontiac area have had a different product selection than chain stores in, say...troy. identical "store," greatly different product mix...and resulting revenue, and profit. then, there's employee retention, customer loyalty, drift...

the retail equation is a complex formula.
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Jfried
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Username: Jfried

Post Number: 831
Registered: 11-2003
Posted From: 209.131.7.190
Posted on Tuesday, May 02, 2006 - 3:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

bump
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Susanarosa
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Username: Susanarosa

Post Number: 805
Registered: 11-2003
Posted From: 68.79.94.221
Posted on Tuesday, May 02, 2006 - 4:24 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

another interesting feature of chain store locations: product mix. i have noticed that chain stores in the pontiac area have had a different product selection than chain stores in, say...troy. identical "store," greatly different product mix...and resulting revenue, and profit. then, there's employee retention, customer loyalty, drift...




Look no further than Oakland Mall vs. Somerset.

The Limited, Victoria's Secret, the Gap... all have some different clothes/product at different prices. My girlfriends in high school used to get so pissed when I'd get the same Gap t-shirt on sale at Oakland Mall when they were still paying full price at Somerset. Hahahaha...
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Neilr
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Username: Neilr

Post Number: 246
Registered: 06-2005
Posted From: 69.242.218.76
Posted on Monday, May 08, 2006 - 4:30 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

bump
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1953
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Username: 1953

Post Number: 813
Registered: 12-2004
Posted From: 209.104.146.146
Posted on Monday, May 08, 2006 - 4:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I read this morning that the Osborn area has a homicide rate of 51.4 murders per 100,000, compared to the national average of 5.5. That's a good reason not to locate anything there.
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Eric_c
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Username: Eric_c

Post Number: 726
Registered: 11-2003
Posted From: 68.76.202.10
Posted on Tuesday, May 09, 2006 - 1:47 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Did anyone go?
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Dabirch
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Username: Dabirch

Post Number: 1490
Registered: 06-2004
Posted From: 208.44.117.10
Posted on Tuesday, May 09, 2006 - 1:59 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

Did anyone go?




Probably not because if anybody did go, then they would have to refer to facts and retail logic when making their posts instead of the "I really think..." or "we could really use a..." or "how come we don't have a..." thought process that is so prevelant.
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Merchantgander
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Username: Merchantgander

Post Number: 1762
Registered: 01-2005
Posted From: 150.198.150.244
Posted on Tuesday, May 09, 2006 - 2:42 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Dabirch you are so negative. I think you need to be more positive like me.
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Jsmyers
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Username: Jsmyers

Post Number: 1691
Registered: 12-2003
Posted From: 209.131.7.68
Posted on Tuesday, May 09, 2006 - 2:43 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I went...don't really have time to comment about it right now though.
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Neilr
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Username: Neilr

Post Number: 248
Registered: 06-2005
Posted From: 68.60.139.169
Posted on Wednesday, May 10, 2006 - 12:13 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I went with a neighbor. Ms. Formosa spoke on the topic of urban retail. Her firm has done work for Home Depot and others. She presented demographic info about Detroit and explained how these factors impact the selection of sites by major retail companies. She spoke of the need to create a positive buzz about Detroit. She was open to questions and comments throughout her presentation.

All in all, I learned more reading several of the threads on this forum. However, I feel a need to support group efforts towards a common goal and it was good to be in the companpy of 35 or so like-minded people.

An added bonus: Wayne's campus looked great. I looked in on the new fitness center and admired the rock-climbing wall. I also, for the first time in years, went in the grand old lobby of the Chatsworth Apartment Bldg. If you've never been inside, it's well worth a visit.

(Message edited by Neilr on May 10, 2006)

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