---

To subscribe, click here. To return to list of past issues, click here.

August 2007

Inventing a Downtown that Never Was!

With developers building fewer enclosed regional malls in recent years, lifestyle shopping centers have become the growth engine for the shopping center business. Recently I had the opportunity to spend some time in a lifestyle shopping center that was designed to replicate the downtown shopping districts of the past. The developers, Forest City Enterprises, created a faux downtown atmosphere attempting to make the entire area feel as though it had been built many years ago.

Opened with great fanfare in November 2004, located in Rancho Cucamonga, approximately 50 miles east of Los Angeles in an area known as the Inland Empire. For years, the area was hardly an Empire, with narrow roads, a few scrubby trees, some desert, and a sparse population. Recently, Rancho Cucamonga and its surrounding communities have exploded in growth with a proliferation of freeways, homes, and lots of people. According to the 2000 Census, the population of San Bernardino County was just over 1.7 million. Through the first years of the new decade, the area continued to grow. This massive growth provided major opportunities for shopping center operators and retailers.

Located just off Foothill Boulevard (the old Route 66), Victoria Gardens is a 1.4-million-square-foot, open-air shopping complex spread over 12 square blocks. It is surrounded by apartment buildings, parking lots, and space for future condominium and townhouse development.

One of the ingredients for success in any shopping center is the mix of stores. Unfortunately the Victoria Gardens store mix offers little to distinguish it from dozens of other Southern California shopping centers. Let's see, there's a JC Penney, two Macy's, The Gap, Coldwater Creek, GUESS?, Victoria's Secret, Eddie Bauer, and American Eagle Outfitters. There's a Coach store, Gymboree, Ben Bridge Jewelers, Bath & Body Works, Champs Sports, Stride Rite, Pottery Barn, Williams-Sonoma, and a Hallmark Gold Crown store. Nothing unusual, but 150-plus well-known stores give customers plenty of choices.

Why two Macy's? The Macy's purchase of May Department Stores was not long after Robinson-May opened in this center. It's been reported that Macy's unsuccessful attempt to sell the May location required them to adhere to provisions of the lease and continue operating the space as a department store. The duplication does cause confusion among some visitors.

Victoria Gardens does host a better-than-average selection of restaurants. The Cheesecake Factory, Fleming's Steakhouse, P.F. Chang's, T.G.I Friday's, and Yard House operate along with a food hall with ten quick-and-easy meal establishments including Ben & Jerry's, Hot Dog on a Stick, and Panda Express. And finally, the 12-screen AMC movie theatre helps make this an entertainment-oriented destination.

The goal of the developer was to create the atmosphere of a small, old-time downtown. So here and there, you'll find a number of signs representing the kinds of independent merchants you might find in such a place. Some might consider these signs a nice touch, but in fact the store mix includes less than five independent or locally owned establishments. There's a hotel sign but no hotel. I believe the signs fail to achieve the feeling the developers wanted.

In an effort to make this a destination for everyone in the community, a cultural center was added that includes a branch library, playhouse for local theatre productions, and celebration hall rented out for birthday parties and other special occasions. A very nice center courtyard provides a place for kids to play and others to sit, relax, and enjoy the warm California days.

With attractive tree-lined streets, plenty of parking, lots of places to sit and relax, music playing inside and out, and a well-laid-out shopping, eating, and entertainment environment, Victoria Gardens attracts a good crowd. This is in spite of the less-than-innovative mix of stores.

Like most major shopping centers, Victoria Gardens is now surrounded by smaller strip centers and such destination-type stores as Sears Grand, REI, and a 180,000-square foot Outdoor World opened by Bass Pro Shops in July. Outdoor World stores (now numbering 43 throughout the U.S. and Canada) typically attract as many as 90,000 visitors annually making them a very popular tourist destination and give another boost in traffic to the area.

With the success of Victoria Gardens, there's little doubt we'll see similar lifestyle centers springing up around the country. I do hope in future projects, developers take a closer look at the tenant mix and include a number of smaller, innovative retailers to add some spice to the mix. And if they can't create a legitimate facsimile of old-time shopping, I suggest they abandon the tacky signage.

---

Tales of a Legendary Retailer!

One of the things I enjoy most about my business is the opportunity to meet such legendary retailers as American Furniture Warehouse's Jake Jabs. Two weeks ago, I had the chance to spend some time with this exceptional merchant.

To Colorado residents Jake Jabs is probably most recognized from his television commercials showing him alongside Brahma bulls, tigers, and other exotic animals. Consumers know him best as the state's leading furniture retailer serving thousands of customers every year. His 11 stores range in size from 100,000 square feet to more than 200,000 square feet. His new showroom/warehouse complex in the suburb of Englewood measures 635,000-square-feet on 17 acres. It is comprised of a giant two-story showroom, massive and modern warehouse, and the company's corporate offices.

I had never met Jake Jabs before this visit but had read his book, An American Tiger: An Autobiography (no longer in print), in which Jake tells the story of how, as a young man, he started his retail career in a music store but only began to achieve real success when he bought American Furniture Warehouse in 1975. American Furniture Warehouse's steady growth over the years is attributed to low prices, great service, and a commitment to offering the best selection in Colorado.

As a matter of fact, American Furniture Warehouse, with 77-year-old workaholic Jake Jabs at the helm, is reported to have at least 50% of Colorado's furniture business and annual sales in excess of $350 million. How many retailers can claim that kind of market share?

GREAT RESTROOM!

In my travels around the country, I've had the opportunity to visit lots of stores. While some are quite ordinary, a few are truly amazing. Among the most amazing is Jim Bonaminio's extraordinary food store in Fairfield, Ohio. Many things make this 300,000-square-foot food emporium a treat for shoppers, but now Jungle Jim's International Market claims the award for "America's Best Restroom."

The national contest was sponsored by Cintas Corporation, a supplier of restroom supplies and services. The whimsical restroom at Jungle's Jim's is guaranteed to surprise and delight first-time visitors. The entrances appear to be that of typical port-a-potties like one might find at a construction site or outdoor concert. But that's where the similarity ends. Once through the door, visitors find themselves in a jungle-themed restroom every bit as elegant as one might find in a first-class hotel or restaurant. So often, restrooms in retail stores are an afterthought. It's all in the details, and Jungle Jim's gets it. Do you?

HOW COMPETITIVE IS THE DRUGSTORE BUSINESS?
Last year Wal-Mart took the first shot at drugstores by offering more than 100 generic drugs at just $4 a prescription, soon copied by Target, Publix Supermarkets, and several others. Earlier this month Publix dropped its $4 plan and began filling prescriptions to seven common generic antibiotics for free. All this is being done by supermarket and general merchandise chains to compete with the tremendous growth of drugstores in recent years. With Walgreen's, CVS/Pharmacy, and Rite Aid opening stores at a record pace, the competition is fierce. Just to make it more interesting, the folks at CVS now offer customers a free $25 gift card when they bring in a new prescription or transfer an existing one from another pharmacy.

AND THE WINNER IS!
In a battle that only enriched a bunch of lawyers, the FTC lost its last legal challenge to the Whole Foods-Wild Oats Market merger. This is one of those battles that shouldn't have been fought in the first place. It's obvious the government's lawyers don't understand the dynamics of the highly competitive grocery business.

Until next month...

P.S. In today's challenging retail environment, retailers need to do everything they can to ensure every customer gets the information and help needed to make an informed buying decision. For the past 20 years, I've been training and developing sales associates and store managers so they can sell more merchandise and better serve customers. Would you like to know how I can help you maximize sales and better serve your customers during this upcoming holiday season? Then give me a call at (800) 766-1908.

---

Speeches and Seminars for Retailers

As one of the nation's best-known and most popular speakers, George's 2007 speaking schedule already includes events for retailers and consumer products manufacturers all across the country. He's added some exciting new convention and trade show topics. If you are a meeting planner or are involved with speaker selection and would like to book George for your next convention, we encourage you to call as early as possible. George's calendar fills up quickly.

Topics for conventions and trade shows:
(Click on a topic for details)

Retail Success! Increase Sales, Maximize Profits, and Wow Your Customers in the Most Competitive Marketplace in History

Into the Future! Powerful Trends Shaping the Future of Retailing

Stop, Look, Touch, and Buy: The Dynamics of Merchandising

12 Powerful Advertising Secrets Every Retailer Should Know

Power, Punch & Pizzazz! Create Advertising that Grabs Customer Attention and Sells More Merchandise

Customer-Direct Marketing: Increase Retail Sales with High-Impact Direct Mail & E-Mail

Double Your Sales and Triple Your Profits with High-Impact Marketing and Promotions!

Competition? What Competition! Standing Out in Today's Competitive Retail Marketplace

How to Find an Eagle in a Flock of Turkeys! Finding, Hiring, and Keeping the BEST Retail Employees

Every Customer Every Day!

For more information go to our web site or call 800-766-1908.

---

Seminars and Training Programs for Managers and Associates

Delivering performance-enhancing speeches and seminars for retailers since 1987, George jam-packs his presentations with practical, real-world information. His seminars for managers and associates teach store management skills, customer service improvement, and sales techniques. If you want to improve store productivity and profitability in 2007, we encourage you to call George Whalin. Don't wait, his calendar fills up quickly.

Topics for managers' meetings and corporate conferences:
(Click on a topic for details)

Great Store Managers Make Great Stores!

How to Find an Eagle in a Flock of Turkeys! Finding, Hiring, and Keeping the BEST Retail Employees

Customer Focused Selling

Every Customer Every Day!

For more information go to our web site or call 800-766-1908.

---

Resources for Retailers

George Whalin's book RETAIL SUCCESS! is now in its ninth printing. A number of consumer products manufacturers have purchased the book for their retailer customers. Retailers have provided copies for their managers who regularly refer to portions of the book in their managers' meetings. And managers are referring to the book in their daily store meetings. If you haven't purchased a copy yet, what are you waiting for? For multiple copies, call us for volume pricing. For individual copies, there are also some very good deals to be had at amazon.

Go to our web site today where you'll find several other books in addition to RETAIL SUCCESS that George recommends. Check it out often, he keeps adding to the list.

---

If you have an opinion or thoughts about any of the topics posted, I invite you to comment at retailerblog.com It's easy to do. And if you have a topic you would like to see addressed on the blog, send me an e-mail at george@whalinonretail.com.

---

In addition to speeches and seminars, George also consults with retailers helping them improve the operation of their businesses. His consulting services include helping retailers with strategic planning issues, marketplace positioning, merchandising and store layouts, developing results-driven marketing and advertising programs, personnel management, and improving store performance. If you need solid, practical, proven insights and ideas to grow and improve your business, call us toll-free at (800) 766-1908.

---

We encourage you to pass this publication along to your associates and colleagues. If all or any portion of this newsletter is reproduced in another publication, attribution should read as follows: Copyright 2007. Reprinted with permission from George Whalin's Retail Management E-Letter. To occasionally reprint portions of this newsletter one time, no express permission is required. To reprint in more than one venue or multiple articles, please contact us at 800-766-1908 or info@whalinonretail.com.

---

To subscribe, click here. To return to list of past issues, click here.

---