1. Beaufort Retail Report
Debriefing:
Redevelopment Commission
September 1, 2011
Seth Harry and Associates, Inc.

2. The Market
Seth Harry and Associates, Inc.

3. Extra-Regional Context
Seth Harry and Associates, Inc.

4. Regional Competitive Context
Seth Harry and Associates, Inc.

5. Local Competitive Context
Seth Harry and Associates, Inc.

6. Local Competitive Context
Seth Harry and Associates, Inc.

7. Market Context
Primary:
(Daily Needs)
Secondary:
(Shoppers Goods)
Tertiary:
(Regional/
Specialty Goods)
Seth Harry and Associates, Inc.

8. Demographics (2000, 2010, 2015)
5 min - 10 min - 30 min -
Population: Population: Population:
5,282/ 5,054/ 5,147 18,566/ 19,756/ 20,923 64,891/ 73,633/ 80,129
Households: Households: Households:
2,210 /2,158/2,205 7,371/ 7,930/ 8,413 21,893/ 25,758/ 28,320
Median HH Income: Median HH Income: Median HH Income:
$34,265 $38,260 $38,615
$41,984 $47,757 $48,070
$47,811 $54,507 $54,169
Seth Harry and Associates, Inc.

9. By NAICS:
Demand
(Potential) Supply Leakage/Surplus
5/10/15 min: (est.): Factor:
$56,537,694 $143,125,115 - $86,587,421
$48,666,322/ $118,781,660/ - 41.9
$ 7,871,372 $ 24,343,455 - 51.1
$179,242,620/ $329,412,426/ - 29.5
$ 29,320,982 $ 56,929,091 - 32.0
$574,680,879/ $912,903,068/ -22.7
$ 92,221,799 $ 76,602,630 9.3
Seth Harry and Associates, Inc.

10. Oversupply
Verses
Inflow of consumer dollars:
Seth Harry and Associates, Inc.

11. Retail Sales per Restaurant Sales
Square foot: per Square foot:
Range: Range:
$30 – 80/sq. ft. $200 – 300/sq. ft.
w/ some notable
exceptions
Seth Harry and Associates, Inc.

12. Psycho-graphic Trends
Seth Harry and Associates, Inc.

13. Psycho-graphic Trends
Seth Harry and Associates, Inc.

14. Psycho-graphic Trends
•Mid-life Junction
•Up and Coming Families
•Great Expectations
•Rural Bypasses
•Military Proximate
•Silver and Gold
Seth Harry and Associates, Inc.

15. Psychographic Characteristics
Diverse in many ways but --
with the exception of “Gold
and Silver” – have modest
income levels, and are
considered careful spenders,
who frequent discount
retailers and family-style chain
restaurants.
Seth Harry and Associates, Inc.

16. Psychographic Characteristics
“Up and Coming Families”
represents one of the best
long-term capture potentials –
young in median age with a
high level of disposable
income.
Seth Harry and Associates, Inc.

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26. Strategic Response
Threats:
(threats and opportunities)
• Nearby Shopping Centers compete
for local purchases
• Internet/Hilton Head Competes for
Shoppers Goods
• Tanger Factory Outlets
(Fashion/apparel focus)
• Ad hoc Visitor experience
Seth Harry and Associates, Inc.

27. Strategic Response
Opportunities
• Unique physical setting/waterfront
environment
• Congestion on 278 (nobody goes
there anymore, it’s too popular)
• Catalytic/transformative Uses
• Changing Demographics
Seth Harry and Associates, Inc.

28. Critical Issues
• Market Positioning
• Merchandising Plan
• Coordinated Operating Hours/
Comprehensive management
• Lighting
• Parking
• Revenue/maintenance
• Upper-story uses (code)
• Funding mechanisms
• Gentrification
Seth Harry and Associates, Inc.

29. Strategic Response
• Capture a larger share of the local
consumer market
• Capture a larger share of the
visitor market
• Embrace Change while retaining
core strengths and attributes
(Pursue Catalytic Projects)
• Diversify Economy/appeal
Seth Harry and Associates, Inc.

30. Strategic Response
• Redefine what Constitutes
“Downtown” Beaufort
• Broaden diversity of goods and
experiences within “niche” focus,
while avoiding unanticipated/
unwanted “niche” stigmas
• Create flexible, robust
“framework” to guide change in an
organic, but consistently
positive direction
Seth Harry and Associates, Inc.

31. Comprehensive
Management:
• Merchandising Plan
• Marketing
• Coordinated Operating Hours/
Management
• Lighting
• Parking
• Events programming
Seth Harry and Associates, Inc.

32. Merchandising Plan (current):
P
P
P
P
Seth Harry and Associates, Inc.

33. Merchandising Plan (proposed):
Seth Harry and Associates, Inc.

34. Merchandising Plan:
Seth Harry and Associates, Inc.

35. Strategic Responses
• Design/Merchandising Strategies
• Signage
• Lighting
• Way-finding
• Street furnishings
• Landscaping
• Security/maintenance/Visitor
Assistance (ambassadors)
• Visitor Amenities/Restrooms
Seth Harry and Associates, Inc.

36. Building Design
Seth Harry and Associates, Inc.

37. Tenant Design Guidelines
Seth Harry and Associates, Inc.

38. Influential/Supportive Policies
and Funding Sources
• Historic Review Board
• National Rehab Code/
• Federal and State Rehabilitation
Tax Credits
• Federal New Markets Tax Credits
• Special Events Funding
• TIF/BID
• Low-interest revolving loan fund
• Public/private Grants
Seth Harry and Associates, Inc.

39. Strategic Responses
•More frequent/locally targeted
events
• Initiate merchant enhancement
policies/programs
• Initiate merchant recruitment
strategies
• More Jobs and more people living
downtown
Seth Harry and Associates, Inc.

40. Demographic Trends
Seth Harry and Associates, Inc.

41. Demographic Trends
Seth Harry and Associates, Inc.

42. Demographic Trends
Seth Harry and Associates, Inc.

43. Demographic Trends
Seth Harry and Associates, Inc.

44. Demographic Trends
Seth Harry and Associates, Inc.

45. General Observations/recommendation:
• Need to refine and sharpen market
positioning strategy
• Secure more detailed information on the
Visitor market, and update frequently
• Restaurants are leading the leading the
curve in setting the tone, and “proving the
market” – retail needs to follow suit
• Hours/days of operation is probably the
biggest short-term impediment to growing
market share
Seth Harry and Associates, Inc.

46. General Observations/recommendation:
• Many stores need to improve quality and
“freshness” of interior design/
merchandising
• Traffic flow/parking needs addressing,
including narrow sidewalks
• Create more reasons to come downtown
• Consider, dedicated, targeted recruitment
campaign
• Wherever possible, align local buyer’s
preferences with visitor market
merchandise (broaden appeal)
Seth Harry and Associates, Inc.

47. General Observations/recommendation:
• Encourage new investment through more
flexible regulatory/design parameters
• Aggressively pursue catalytic
opportunities by leveraging existing
assets
• Tailor downtown housing/redevelopment
options to target specific consumer
groups through segmentation analysis
• Redefine “downtown” as a
broader set of unique districts, to enhance
visitor draw
Seth Harry and Associates, Inc.

48. General Observations/recommendation:
• Break potential disinvestment cycle –
build on momentum
• Pursue “best in class” merchants with
unique, one of a kind products
• Diversify offerings/price points within
broad merchandise categories
• “Grow your own” grocery concept
• Aim for where the market is heading – not
where its been
Seth Harry and Associates, Inc.

49. Summary:
• Modest local market, further challenged by
current recession
• Large supply of commercially zoned land
just outside of town
• Physical constraints represented by the
historic downtown core
Seth Harry and Associates, Inc.

50. Key Strategic Response:
• Increase market share by offering a
broader array of branded merchandise
• Develop/enhance the local consumer
market in both size and demographic
attributes.
• Capitalize on demographic trends favoring
compact, walkable communities, and an
amenity rich environment
Seth Harry and Associates, Inc.

51. What does Beaufort
want to be?

52. A. A traditional coastal
community, trading on its
history and cultural assets,
appealing to a well-defined,
consistent audience

53. B. A diverse community,
representing a broad socio-
economic spectrum whose
attraction to Beaufort is
based upon a combination of
local traditions and natural
amenities

54. C. A dynamic, forward looking
City of the future which
embraces its past while
positioning itself as a
sustainable community where
young families and adults can
pursue their dreams in
exciting and fulfilling ways

55. D. All of the above.

56. Not a single “big idea,”
rather --
A multi-faceted approach
within
a flexible, well-coordinated,
and comprehensive
framework …
Seth Harry and Associates, Inc.