DESCRIPTIONThe volatile retail sector is a major employer across Australia. Jobs are at risk when shops lie empty because of the inevitable changes in the retail sector. A local retail strategy examines the strengths and weaknesses of the retail mix to balance the interests of shopkeepers, employees and the community. A strategy can help to maintain a strong employment base, facilitate retail transitions and minimise dislocations in the sector.
USESThe primary purpose of a local retail strategy is to provide a framework for the development, evolution and growth of the retail sector in an area. Relevant areas can range from small country towns, to strip shops along busy metropolitan roads, to large suburban areas.
The retail sector is influenced at all three levels of government—local policies on planning and development applications, state government policies on trading hours and federal policies on trade practices. A local retail strategy will help decision-makers (especially at state and local levels) make informed decisions that are in the best interests of the communities they serve.
The processes of investigating the local retail sector and preparing a strategy for its growth are themselves valuable activities that will help assess and understand the sector. The process of preparing a strategy often has the unintended effect of various agencies focusing on the range of competitive pressures highlighted by the investigation.
Many communities frequently undergo divisive struggles regarding various aspects of the local retail sector—construction and extension of shopping malls, changes to trading hours, arrival or departure of key players. Where there is debate or competition in an area for resources to undertake particular activities impacting on the sector, a local strategy will help ensure that priorities are determined sensibly, in consultation with the community and on an informed basis.
HOW IT WORKSA local retail strategy involves determination of the preferences and priorities of traders, employees and the broader community.
Traders can be surveyed by sending around a short questionnaire on the key issues. These issues should be determined in conjunction with traders, perhaps through a small working group or local Chamber of Commerce.
The issues are likely to include:
• age, size and type of business;
• recent trading history and prospects;
• views on the shopping area and priorities for improvements;
• main threats to business (and the scale of these in terms of impact on turnover/staff numbers); and
• main opportunities.
Trader groups or the local Chamber of Commerce may also assist with endorsing, distributing and collecting surveys. Employees and the broader community should also be surveyed to determine their needs, interests and attitudes—either via surveys distributed at the shops or via a random poll.
The strategy builds on the responses to these surveys, combined with a broader analysis of the changing patterns of retail trends in the surrounding area, and the changing patterns and trends of the types and desires of consumers.
Once drafted, the strategy should be distributed for comment. People may not come to a public brainstorming meeting but are bound to react when something is put before them that affects their future.
PREREQUISITESBefore launching into the preparation of the strategy it is important to have a broad understanding of the changing nature of the retail sector in the area. This understanding will determine the core elements that the strategy needs to address.
Links into local retail businesses are also important to stimulate participation in the strategy process. The strategy will not see the light of day without the assistance and support of local traders.
HOW TO STARTAs indicated above, the first steps involve gathering an understanding of the changing nature of the local retail sector, and securing co-operation from retail business operators.
STRENGTHSThis tool can work very well to spark interest in the subject matter and draw together a consensus of views on what is best for the area. While there will always be differences of opinion, the process of setting down and gathering information on the key issues for retailers in the area is a valuable and visible sign that ‘someone is thinking ahead’.
WEAKNESSESLike many ‘bottom-up’ approaches, this tool is vulnerable to (actual or perceived) capture by interest groups. This is not always a strong negative, as the interests are always out there, but it can blunt the focus of the strategy. Developing a strategy may also flush out wildly divergent opinions that cannot (or will not) be reconciled.
WARNINGSThe process outlined in this tool is deliberately open and very public. This openness is essential when most members of the community are affected one way or the other by changes in the health and mix of retail. But the openness can make trouble in the process hard to bury.
INDICATIVE PRICE/COSTSThe costs depend on the scale of the project, the size of the area and the number and variety of traders, employees and consumers. It may be easier, for example, to obtain a sample of consumers when they are mostly locals—visitors can take longer to get hold of.
Surveys of 100 traders, 100 employees and 100 consumers will each take a couple of days to do, and additional time to set up and process. Preparation of the whole strategy should take less than a month, except in a very complex area, and cost up to $15,000 depending on how much in-kind support is provided.
FUNDING RESOURCE OPTIONSAssistance should be sought from interested parties like small business groups, trader/tenant groups, property owners groups or Chambers of Commerce. The assistance need not be in cash—the process set out here is quite labour intensive and help with designing, distributing, collecting and collating the survey material is very valuable. Schools may provide a good source of help.
MONITORING AND PERFORMANCE EVALUATIONThe process set out here is ideal for periodic review, and for assessing the validity of impact statements typically required as part of large-scale development applications. By building a sound picture of the retail sector and setting a benchmark, changes in the sector’s health, activity levels and mix are readily assessed further down the track.
SIMILAR TOOLS• Business Audits Tool.
• Economic Impact Assessment Tool.
INFORMATION RESOURCESSome of the challenges facing retail businesses are analysed in:
Council of Small Business Organisations of Australia, (1997) Jobs in Our Regions: Building on the Small Business Base.