Retail Recruitment

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Retail Recruitment

• MJB Consulting
• Friday, October 17, 2008

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Retail Recruitment

• Either/Or National Chains

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Retail Recruitment

• Either/Or Mom Pops

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Retail Recruitment

• Credit versus Character
• Credit large store fleet, in business for
  decades
• Character unique concept, local operator
• National chain
• 100 credit -- bankable
• 0 character - ubiquitous, far-flung HQ
• Mom Pop (first-time entrepreneur)
• 0 credit - no track record
• 100 character - one-of-a-kind, homegrown

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Local Chain-lets

• Identifying possibilities
• Canvassing in comparables
• Talking with existing merchants
• Reading local business and niche weeklies

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Local Chain-lets

• Understanding what they look for
• Comparables spreadsheet
• What other sorts of Main Streets?
• Size, anchor retailers/uses, shopper
  demographic/psycho-graphic, etc.
• What kinds of spaces?
• Historic buildings
• Square-footage and dimensions
• Relationship to traffic flows (e.g. corner,
  secondary street, etc.)
• Proximity to off-street parking
• Supplement with secondary research

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Local Chain-lets

• Send e-mail (and mail hard-copy) to owner
• Tell a story about where the Main Street is
  going
• Appeal to the retailers understanding of its
  concept
• even if it is rather skewed
• Show how the concept fits this direction
• Appeal to the retailers vanity
• Especially effective with owners of smaller
  chain-lets (its their babies!)
• Also a way of avoiding weak fundamentals

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Local Chain-lets

• In this initial e-mail
• Provide evidence of this direction in his
  language
• Presence of larger chains
• Sales figures of existing retailers
• Estimate with the 10 rule-of-thumb
• Merchant testimonials
• Especially influential with local chain-lets
• Helpful demographics
• Absolute figures versus averages
• Under-supply, absence of competition (if
  applicable)

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Local Chain-lets

• In this initial e-mail
• Provide evidence of this direction in his
  language
• Reference comparables
• But you opened and appear to be thriving in this
  other similar market/space
• He might have not performed this sort of analysis
• Shows youve done your homework
• Attached photos (e.g. showing foot or store
  traffic, etc.)
• NOT during a special event

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Local Chain-lets

• In this initial e-mail
• Provide evidence of this direction in his
  language
• Other operators that you are targeting (and how
  they too fit the direction)
• Carrots you can offer
• Available public-sector incentives
• Landlords willing to work with you on rents and
  TI
• Make them feel wanted!

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Local Chain-lets

• Playing on a chain-lets local roots
• Should not be about guilt or obligation
• Cares deeply about his city/town
• Might have desire to be a part of something
  growing
• Recognizes opportunities that the numbers do not
  yet indicate
• From on-the-ground perspective
• Not yet so systematic or rigid
• but site-location decisions also need to make
  business sense now

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Local Chain-lets

• Identifying possible spaces
• Given site-location requirements, from
  comparables spreadsheet
• Lobbying for buy-in from relevant landlords
• Making the case for the tenant (if necessary)
• Creditworthiness
• Build-out

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Local Chain-lets

• Follow up with phone call in a week or two
• Possible requests for additional information
• Location map (e.g. showing anchors, co-tenants,
  parking, etc.)
• Try to schedule a meeting, including
• Testifying merchants
• Bought-in landlord
• Persistence and perseverance
• Retail recruitment is a marathon, not a sprint

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For More Information

• Michael J. Berne
• President, MJB Consulting
• 216 West 99th Street, Suite 19
• New York, New York 10025
• Office Phone [phone]
• Cell Phone [phone]
• E-mail mikeberne_at_juno.com