|
OCTOBER 1993
<br />
<br />I
<br />
<br />I I
<br />
<br />AMERICAN
<br />PLANNING
<br />ASSOCIATION
<br />
<br />Doing BusJness with
<br />Big Box Retailers
<br />
<br />~, Michelle GrexoO'
<br />
<br />There's a newcomer to the retail mdustr).', and it's the biggest kid
<br />on the block. The big box or value retailer has taken communi-
<br />ties all over the country, by storm. There are many types, but
<br />regardless of their inventory or market segment, these megastores
<br />have created significant impacts on the local landscape a,ad thc
<br />local economy. This issue of Zoni,g Neu,s briefly describes these
<br />differing retailers, thc site design issues that accompany them,
<br />and their parking requirements, traffic generation, and economic
<br />impacts on small towns.
<br />
<br />Descriptions
<br />Value retailers are very large chain stores that buy volume, sell value,
<br />and occupy a lot of space. They comprise a genus with man),
<br />species: warehouse clubs, category, killers, discount department
<br />stores, off-price retailers, and outlet stores. Depending on the
<br />product the3.., sell and the market thes' are aiming for, these stores
<br />may fit into one or more categories, and when clustered together
<br />thcv arc often referred to as power centers o] discount malls.
<br /> Listed below are some of their characteristics. However, to
<br />our 'knowledge, legal definitions for these retail uses have not vet
<br />found their way into zoning ordinances. For a more detailed
<br />description of the different types of value retailers, v*,e recom-
<br />mend "Navigating the Value Retail Marketplace" by Dean
<br />Schwanke, Urba, La~d, April 1993.
<br /> Warehouse Clubs. Sam's, Price Club, PACE, and BJ's are all
<br />membership-based, bulk-purchase stores that sell everyr, hing from
<br />groceries to home furnishings to auto parts. Customers are usually
<br />given the option to buy only large quantities of any product. The
<br />ori~nal market for these stores was home-based and small busi-
<br />nesses. Nov,, most offer membership to anyone with good credit.
<br /> Caregog, Kil/o's. Phar-mor, F&M, Super Crown Books, Toys R
<br />Us, and Home Depot are high-volume specialty stores that know
<br />their market yew well. They offer a wide selection of one category
<br />of products. The)., are more frequently found in clusters known as
<br />power centers, but they also stand alone.
<br /> Discount Department Stores. K mart, Wal-Mart, and Target are
<br />g~pical examples. The discount department store category can be
<br />
<br />credited with leadii~g the way for big box retailers because they have
<br />been around the longest. They offer a wide array of goods, soid in
<br />regular quantities at lower prices. Frequently the)' include an auto
<br />parts and sen'ice center and a food-ser,'ice establishment. They are
<br />targeted toward middle- to Iow-income families.
<br /> O.ff--Price Retail,Stores. Establishments like Filene's Basement, TJ
<br />Max~, and Marshall's have rocked the apparel industry. Riding on
<br />thc coattails of designer labels, the)' fulfill the same demand at
<br />significantly reduced prices. Stock at these stores is usually last
<br />season's tine, and it ma)' sometimes carry sligbt imperfections.
<br /> Outlet Stores. Northface Outlet, Bass Shoe Outlet, and Anne
<br />Klein Outlet are brand name stores that frequently appear in
<br />clusters or power centers, as in Kenosha, Wisconsim which regularly
<br />draws crowds of bargain hunters from the Milwaukee and Chicago
<br />areas. These stores sell a limited selection of their brand exdusive}y,
<br />at reduced prices.
<br /> All of these retail r3. Tes share the goal of selling more products by
<br />offering customers a heightened sense of value. The anemic
<br />economy of recent'yeiars has helped them to expand. During the
<br />recession, customers became more interested in how much product
<br />the)' were gerting for their money and less concerned with the
<br />aesthetics of their shopping experiences.
<br /> But there are also development benefits common to big box
<br />retailing that led to this proliferation. First, such stores require veU'
<br />uncomplicated site design and review, which enables them to
<br />develop a parcel quic!dy. This is attractive to local developers.
<br />Second, they are able to negotiate irresistible deals for land and
<br />improvemen=-with municipalities hurting for tax revenues. Finally,
<br />the rate of suburban development in general has helped to foster a
<br />great demand for more places to shop.
<br />
<br />Site Considerations and Design Issues
<br />Most value retailers have developed a healthier market in the
<br />suburbs and the urban fringe than in the inner cities became of
<br />space requirements and complicated approval processes. These
<br />stores generally start at 50,000 square feet and can go as high as
<br />300,000. Lot sizes can range from five to 25 acres depending on the
<br />presence of outparcels or other anchors. As noted in the Chicago
<br />Tribun£s Commercia/RealEstare Magazine, Fall 1993, retailers are
<br />attracted to the dense and diverse populations of the inner cities
<br />that can support man), product niches, bur because mostofthe
<br />remaining large sites were once heavy industrial areas, they must go
<br />through lengrhy environmental impact statements.
<br />
<br />Table 1, Comparison Between Trips for a 110,000 Sq Ft Shopping Center and a 110,000 Sq Ft Warehouse Store
<br />
<br /> Morning Peak Hour Evening Peak Hour Saturday Midday
<br /> In Out Total in Out Total In Out Total Weekday ADT Saturday ADT
<br />
<br />110,000 Sq Ft Club Warehouse Store 33 17 50 162 174 336 298 294 592 3,934
<br />I10,000 Sq Ft Shopping Center 108 64 172 349 349 698 473 473 946 7,501
<br />
<br />4,389
<br />
<br />9,710
<br />
<br />
<br />
|