Commercial Market Analysis for Ancaster Heritage Village
Transcription
Commercial Market Analysis for Ancaster Heritage Village
Commercial Market Analysis for Ancaster Heritage Village April 2010 URBAN MARKETING COLLABORATIVE a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: umc@jcwg.com 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254 Commercial Market Analysis for Ancaster Heritage Village Table of Contents Executive Summary 1 1.0 8 Introduction 1.1 2.0 Background And Project Information Fact-Finding And Analysis 8 11 2.1 Ancaster Heritage Village Trade Area Delineation 11 2.2 Trade Area Boundaries 16 2.3 Trade Area Population Characteristics 19 2.4 Consumer Expenditure And Attitude Analysis 30 2.5 Consumer Survey – General Overview 36 3.0 Retail/Commercial Audit 53 4.0 Strengths, Weaknesses, Opportunities, And Threats 57 5.0 Ancaster Heritage Village Commercial Action Plan 60 5.1 Ancaster Heritage Village Commercial Realities, Niche, Vision, And Principles 60 5.2 Target Markets 67 5.3 Organizing For Success 68 5.4 Economic Development 75 5.5 Major Marketing And Branding Strategies 85 5.6 Programs For Enjoyable Shopping 93 5.7 Measuring Success APPENDICES 101 101 Appendix B Retention And Resources URBAN MARKETING COLLABORATIVE a division of J.C. Williams Group 17 DUNDONALD STREET, 3RD FLOOR, TORONTO, ONTARIO M4Y 1K3. TEL: (416) 929-7690 FAX: (416) 921-4184 e-mail: umc@jcwg.com 350 WEST HUBBARD STREET, SUITE 240, CHICAGO, ILLINOIS 60610. TEL: (312) 673-1254 Commercial Market Analysis Ancaster Heritage Village BIA Commercial Market Analysis for Ancaster Heritage Village BIA Executive Summary Ancaster Heritage Village Business Improvement Area (BIA) is a recently formed organization. Currently, it represents most of the businesses that front on Wilson Street from Montgomery Drive to Dalley Drive as well as others such as The Old Mill on Old Dundas Road. The Ancaster Heritage Village BIA was created with input from and the guidance of stakeholders and interest groups, including the City of Hamilton. Urban Marketing Collaborative was contracted by the City of Hamilton to develop a commercial market strategy for the newly formed BIA. The scope of work was to assess the retail area’s strengths, weaknesses, opportunities, and threats, with respect to developing both short and long-term recommendations. This action plan incorporates: Organizational elements; Economic development, including retail retention and recruitment; Marketing and communications; Other programs, activities, and policies that help the retail environment. The following recommendations in the report are guidance measures for the BIA and the City and not direct policy documents. This report should be used as reference for the future Secondary Plan process. Niche and Vision The overall vision for Ancaster Heritage Village will be built upon the idea of heritage, respite, rejuvenation, and a small shopping village. It will be family focused with a range of town functions including the library, cultural attractions, a community centre, and recreational facilities, along with mixed-use buildings with offices or residential above. People who visit Ancaster Heritage Village will be able to absorb the atmosphere, relax, and, when they leave, they will feel refreshed. Urban Marketing Collaborative 1 Commercial Market Analysis Ancaster Heritage Village BIA Overall, Ancaster Heritage Village commercial businesses must have a focus that works to support the local population first. It would be very easy to recommend a strategy that focuses on the tourist market to become akin to places such as Mount Tremblant, St. Jacobs, Merrickville, or Niagara on the Lake. While these are interesting places, they lack focus as it relates to the local population, and are primarily tourist destinations. This means they are at the mercy of exchange rates and fickle tourists. The retail strategy for Ancaster Heritage Village must work to enhance the needs of the local population to want to shop and visit Ancaster Heritage Village as a complete, livable, and walkable community. The visitor strategy then works to re-enforce an authentic small-town atmosphere. The visitors will want to come and experience this slice of “paradise” about which the local residents are very passionate. The visitors will be immersed in the local Ancaster Heritage Village culture (third oldest town in Ontario) that is authentic, real, and heartfelt. Visitors will be able to “live the Ancaster Heritage Village way of life” for a brief period. This strategy will place Ancaster Heritage Village in a unique situation compared to other smaller towns in Canada and the United States. Ancaster Heritage Village becomes a sort of club to which residents want to belong. The village core becomes the place where locals socialize and interact – a type of third place away from work/volunteer commitments or home. This is where they meet their friends and neighbours at the Purple Pony, Rousseaux House, Tim Hortons, or browsing through Needles. To this end, the physical improvements must work towards enhancing the latter brand image of belonging, in addition to fostering a sense of casual socialization for local residents in a more intimate retail setting. To accomplish this, there needs to be a better understanding of traffic flow, in terms of both vehicular origins and the final destinations that these vehicles are travelling to. With this information, it will be possible to determine how traffic that is only passing through the village core can be diverted. A strategy that focuses on local residents related to heritage, art, culture, recreation, and entertainment would provide a return on investment. Consumers want to be entertained in the retail commercial locations of Ancaster Heritage Village. They demand excellent service, knowledgeable staff, and a fun and casual atmosphere. Urban Marketing Collaborative 2 Commercial Market Analysis Ancaster Heritage Village BIA Ancaster Heritage Village will be the vibrant, active centre of a community node in the City of Hamilton and the community of Ancaster. A community wants to foster the notion of being known as close knit and friendly. The “town/community centre” steeped in tradition and history, with buildings, streets, and streetscapes that reflect its unique past and its role as the town meeting and gathering place. It will: Incorporate the small-town tradition between the country and the city. The word “quaint” does not fully encapsulate the entire atmosphere of Ancaster Heritage Village. It is more sophisticated than most rural towns and villages due to its proximity to Hamilton and the Greater Toronto Area. Maintain its small-town tradition with links to the surrounding rural, escarpment, natural springs, waterfalls, and adjacent urban areas. Be a sociable and friendly community whose heritage and rural traditions will be preserved and enhanced. Maintain its historic village core as a central meeting place and shopping area for the community and adjacent rural and urban areas. Be an environmentally aware community with a linked green space system, including protected natural heritage features. Be economically and physically accessible to people of all ages and interests. Be a well-designed community incorporating its heritage roots with attractive streetscapes and building designs that encourage socialization in a friendly manner. The scale of development has to have a pedestrian-oriented focus, with strong linkages to trail systems that link residential to the commercial areas along Wilson Street, as well as to recreational activities. The ease of vehicular access to the village and the provision of parking areas are effectively promoted. This enhances visits to businesses and recreational, cultural, entertainment, and religious venues. A community centre would reinforce the village’s role as a meeting place, and serve as a focal point. The Ancaster Town Hall/library and nearby recreation areas should serve as a meeting place for residents and visitors. Urban Marketing Collaborative 3 Commercial Market Analysis Ancaster Heritage Village BIA Action plan recommendations include: Recommendations – Organization Action Step Time Frame Responsibility Develop a full set of communication tools, assign a budget, and resource time against each Immediate Ancaster Heritage Village BIA Finalize a job responsibility program for the executive director Immediate Ancaster Heritage Village BIA BIA to canvas for support and increase communication and work with non-members Immediate Ancaster Heritage Village BIA, City Evaluate BIA committees ensuring that they are working towards strategic planning and developing tactics to carry out the goals set Within 18 months Ancaster Heritage Village BIA, City Develop methods for increasing private/public sector investment including corporations, foundations, public sectors, houses of worship, and other private sector bodies Short-tomediumterm Ancaster Heritage Village BIA Coordinate with local groups, clubs, and associations (e.g., Golf Club, Garden Club, etc.) to discuss opportunities to fund specifically identified local-based projects within the village Short-term Ancaster Heritage Village BIA and other groups and organizations Urban Marketing Collaborative 4 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Economic Development Strategies Action Step Time Frame Responsibility BIA to set goals and objectives for retail recruitment as well as other community activities (community centre, recreational facilities, arts, culture, etc.). Goals should be to increase retail merchandise to 15% in the short term and with the overall goal of 20% in the longer term. Convenience retail should increase to 6% in the short term and 10% in the long term Immediate Ancaster Heritage Village BIA Continue to enhance farmers’ market Begin commercial retention programs Ancaster Heritage Village BIA Short-term Ancaster Heritage Village BIA Develop a one page of strengths of Ancaster Short-term Heritage Village BIA that a potential retailer would find helpful (facts on why you should locate here) Ancaster Heritage Village BIA Develop programs related to improved customer service Short-term Ancaster Heritage Village BIA Develop program of potential retail and community uses along the entire BIA including conversion of residential to retail, mixed-use building opportunities, other infill potential, and redevelopment of existing buildings Short-term to mediumterm Ancaster Heritage Village BIA Develop potential incentives, ideas, and programs to help facilitate new businesses to open in the BIA Mediumterm Ancaster Heritage Village BIA, City Act as a liaison for retail investment opportunities Mediumterm Ancaster Heritage Village BIA Urban Marketing Collaborative 5 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Marketing and Branding Strategies Action Step Time Frame Responsibility Coordinate joint marketing programs among businesses Immediate Ancaster Heritage Village BIA Work with all businesses to ensure that they include Ancaster Heritage Village in their address cards, yellow pages, website contact information, etc. Immediate Ancaster Heritage Village BIA Develop a website and then ensure that it is linked to many other organizations (e.g., City, arts and culture organizations, recreation, etc.) – use programs such as Constant Contact to develop direct mail campaigns Immediate Ancaster Heritage Village BIA Enhance public relations with local media (Ancaster News, Dundas Star, The Spectator) and search out where possible national coverage in larger circulation media such as The Globe and Mail or blog/Internet sites Immediate Ancaster Heritage Village BIA, media A tourist information kiosk should be enhanced at the library (not necessarily staffed) Immediate Ancaster Heritage Village BIA, library, Tourism Hamilton Establish consistent shopping hours to promote the hours of operation. Organize a special village service and retail workshop to discuss hours of operation and customer service excellence Immediate and ongoing Ancaster Heritage Village BIA Develop an Ancaster Heritage Village brand Short-term Ancaster Heritage Village BIA Explore the feasibility of cross-marketing businesses with other activities – accommodation, art and cultural programs, Farmers’ Market, and professional services Short-term and ongoing Ancaster Heritage Village BIA, other organizations Develop and establish distinctive gateways on the approaches to Ancaster Heritage Village and signage within the Village that reinforces a consistent theme and provides useful/effective information. Ensure that these are both pedestrian and vehicular scaled Short-term Ancaster Heritage Village BIA, City Explore opportunities for increased events and programs – designed to raise the profile of the Village as a community destination Short-term and ongoing Ancaster Heritage Village BIA Explore partnerships with regional tourism sectors – such as agri-business and culinary activities, ecotourism and recreational trails Short-term and ongoing Ancaster Heritage Village BIA, City, and other organizations Urban Marketing Collaborative 6 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Programs for Enjoyable Shopping Strategies Action Steps Time Frame Responsibility Explore infill opportunities to create a consistent street front Immediate and ongoing Ancaster Heritage Village BIA and City Explore feasibility of diverting traffic (e.g., by providing additional westbound access ramps to Hwy 403, including from Main St. W.) and creating an intimate shopping environment through curb line, widening sidewalks and narrow intersections. These areas could be enhanced with benches, street trees, and public art Immediate and ongoing Ancaster Heritage Village BIA and City A full evaluation of parking locations is required in Short-term view of the need for both additional general parking and street parking in front of as many businesses as possible Ancaster Heritage Village BIA and City Establish a level of service for enhanced maintenance and appearance of the public realm (e.g., roads, sidewalks, gardens and planters, signage, street furniture, and public buildings) Short-term Ancaster Heritage Village BIA and City Consider the establishment of urban design guidelines to ensure that a consistent building theme is enforced and discuss the pros and cons of establishing a Heritage Conservation District Short to mediumterm Ancaster Heritage Village BIA and City Urban Marketing Collaborative 7 Commercial Market Analysis Ancaster Heritage Village BIA 1.0 Introduction Ancaster Heritage Village Business Improvement Area (BIA) is a recently formed organization. Currently, it represents the businesses that front on Wilson Street from Montgomery Drive to Dalley Drive. The Ancaster Heritage Village BIA was created with input from and the guidance of stakeholders and interest groups, including the City of Hamilton. Urban Marketing Collaborative was contracted by the City of Hamilton to develop a commercial market strategy for the newly formed BIA. The scope of work was to assess the retail area's strengths, weaknesses, opportunities, and threats, with respect to developing both short and long-term recommendations. This action plan incorporates: Organizational elements Economic development, including retail retention and recruitment Marketing and communications Other programs, activities, and policies that help the retail environment Report Organization This document presents a strategic commercial vision and detailed action plan to guide the development and evolution of Ancaster Heritage Village BIA. It lays out a clearly organized agenda for a series of immediate and near-term actions and projects. Adhering to the agenda will help Ancaster Heritage Village BIA realize its full potential as a vital, distinct, and exciting commercial street in an active neighbourhood. 1.1 Background and Project Information Ancaster Heritage Village includes all of the central commercial areas of the historic village in Ancaster. The BIA runs along Wilson Street. At approximately 6,000 feet long, it spans from Montgomery Drive in the north to Dalley Drive in the south. In the core area it is just over 2,000 feet in length. Bordered by two small parkettes that act as anchors for the district, these are ideal gateways to Ancaster Heritage Village. Urban Marketing Collaborative 8 Commercial Market Analysis Ancaster Heritage Village BIA Perched on the edge of the escarpment, Ancaster has a long history dating back to the third oldest settlement in Ontario (1792/1793). The location of numerous creeks and waterfalls facilitated the development of a community associated with agriculture and industry through the use of mills. The agrarian and pioneer roots of the community are still very evident. Today, the creeks, waterfalls, and natural areas attract outdoor enthusiasts to visit and residents to raise their families. The history of Ancaster is well documented and a proud legacy for the community. Ancaster is one of the gateways to the Golden Horseshoe urban area following Highway 403. Urban Marketing Collaborative 9 Commercial Market Analysis Ancaster Heritage Village BIA Urban Marketing Collaborative 10 Commercial Market Analysis Ancaster Heritage Village BIA 2.0 Fact-finding and Analysis The fact-finding and analysis step is vital to the development of a customized and comprehensive action plan. This section of the report provides general demographic and consumer profile data on the target markets for Ancaster Heritage Village, with some specific details related to the BIA. The key person interview analysis is located in Appendix A. 2.1 Ancaster Heritage Village Trade Area Delineation Trade area delineation is a fundamental part of any market analysis. This section of the report delineates a trade area for Ancaster Heritage Village based on site location factors, natural and man-made barriers, the direct competitive retail environment, travel time, and a license plate survey. Factors Influencing the Trade Area Delineation The trade area is considered to be the geographic region from which a majority of the Ancaster Heritage Village visitors originate. The boundaries of the trade area are influenced by the following factors: The size and type of the existing commercial environment Accessibility and visibility Travel time features Relative location and strength of competitive retail areas Natural and man-made barriers In order to complement the above trade area analysis, customer-origin data was collected from a license plate survey conducted in August 2009. The table on the map illustrates the Dissemination Area (DA) where the vehicle is registered (e.g., the owner’s home address, or a commercial vehicle’s business address). DAs are small geographic areas that contain approximately 400 to 700 persons (note that rural DAs represent a larger area than urban DAs). Red is used to highlight those DAs where a larger number of vehicles originated from and green shows that only one vehicle originated from this defined geographic area. Even though there are limitations to license plate surveys, it is beneficial data in application to key person interviews. The primary limitation is the capture of license plates from those who are not local shoppers (e.g., local employees as well as visitors). Urban Marketing Collaborative 11 Commercial Market Analysis Ancaster Heritage Village BIA License Plate Survey by Dissemination Areas While each of these factors in isolation has a bearing on the trade area boundaries, it is their cumulative effect that leads to the definition of the trade area. The importance of each of these factors was considered for the trade area boundaries. For Ancaster Heritage Village, the trade area delineation is a composite trade area for the existing 101 commercial operations for the entire retail corridor. Urban Marketing Collaborative 12 Commercial Market Analysis Ancaster Heritage Village BIA The existing commercial environment can be defined as a historic small village setting, with setbacks, residential to retail conversions including a combination of neighbourhood goods and services but primarily destination and appointment based goods and services. Ancaster Heritage Village has been the commercial centre in the community dating back to 1792/1793. The core retail area includes both historic retail properties, historic homes converted to retail use, and new retail properties, some of which have a noticeable urban design that complements the existing properties. Most of the retail is service based including medical offices, professional offices, automotive, and beauty. Most of these businesses are appointment based and less reliant on walk-in traffic. Other retail businesses include destination retailers and appointment based retailers such as higherend dining. Accessibility and Visibility: Very Good Accessibility and Good Visibility Ancaster Heritage Village is located on Wilson Street which is the only major road (with the exception of Highway 403) through Ancaster. Traffic from Dundas and West Hamilton is funnelled up and down Wilson Street. In addition, due to current on and off-ramps at Highway 403 in West Hamilton, a significant amount of traffic must flow along Wilson Street either through or nearby the retail core. This has a positive and negative impact. While providing the retailers along Wilson Street with good accessibility and visibility, the excessive volumes for the street actually create a dis-incentive for potential customers to stop. The drivers’ primary concern is to get through the heavy traffic areas. They do not want to risk getting out of their spot in line to visit a store since it will be more difficult to re-emerge back into traffic. Urban Marketing Collaborative 13 Commercial Market Analysis Ancaster Heritage Village BIA While accessibility is good is affected by larger than normal traffic volumes through this retail commercial and neighbourhood street. This is reflected in the available traffic and pedestrian volumes for relevant intersections: Vehicular and Pedestrian Volumes 7 Hr Veh. Total 7 Hr Ped Trucks and Buses Wilson @ Montgomery Thurs May 15, 08 8,122 13 292 Wilson @ Rousseaux Thurs May 15, 08 14,723 210 457 Wilson @ Church/Sulphur Fri May 30, 08 9,938 116 322 Wilson @ Halson Fri May 9, 08 11,423 136 282 Source: City of Hamilton It is also noted that the City has undergone several exercises related to the creating of Wilson Street/Ancaster Transportation Master Plan: a major focus of which is the intersection of Wilson Street East and Rousseaux Street. At the date of this report, the transportation issues have not been resolved. Relative Location and Strength of Competitive Retail Facilities: Competitive For unique neighbourhood and leisure-oriented retail areas, there are several to choose from in the Hamilton and Burlington area: Downtown Dundas (leisure retail) Westdale (entertainment and restaurants) Locke Street (eclectic shopping) Downtown Burlington (main street shopping) Downtown Oakville (higher-end retail and restaurants) James Street North (art galleries) For higher-end shopping, consumers will travel to Toronto and some may prefer to go to New York, London, or Paris. Urban Marketing Collaborative 14 Commercial Market Analysis Ancaster Heritage Village BIA Natural and Man-made Barriers Natural and man-made barriers include: Escarpment Ancaster Creek Highway 403 Conservation areas, golf courses Psychological barriers include the area’s image as expensive, too posh, and/or snobby. Urban Marketing Collaborative 15 Commercial Market Analysis Ancaster Heritage Village BIA 2.2 Trade Area Boundaries Based on the analysis from the previous section, trade areas have been developed for Ancaster Heritage Village. To identify the importance of the sub-areas, the trade area can be divided to help distinguish the significance of these areas to the retail/commercial sales potential of Wilson Street. The major division is as follows: Immediate Trade Area – this is the core historic Ancaster Village. It includes Rousseaux Street and the escarpment to the north, Ancaster Creek to the east, Golf Links Road and Jerseyville Road to the south, and Lover’s Lane to the west. Old Ancaster – this includes the built up area of Ancaster primarily west of Highway 403/Highway 6. It includes Lions Club Road and the escarpment to the north, Highway 403 and Highway 6 to the east, Book Road to the south, and Trinity Road/Martin Road to the west. Primary Trade Area – includes Ancaster, Dundas, West Hamilton, and West Mountain Secondary Trade Area – includes the Primary Trade Areas as well as the rest of Downtown Hamilton and the Mountain to Upper Centennial Parkway These boundaries are identified on the map on the following page. In addition, demographics for Hamilton have been provided for benchmarking purposes. Urban Marketing Collaborative 16 Commercial Market Analysis Ancaster Heritage Village BIA Ancaster Village BIA Trade Areas – Zoomed In View Urban Marketing Collaborative 17 Commercial Market Analysis Ancaster Heritage Village BIA Ancaster Village BIA Trade Areas Urban Marketing Collaborative 18 Commercial Market Analysis Ancaster Heritage Village BIA 2.3 Trade Area Population Characteristics An analysis of the demographic composition of local neighbourhood area residents and West Hamilton residents provides the most accurate description of the target markets that will be generating the demand for business products and services in the Ancaster Heritage Village area. The following analysis is based upon the preceding trade area analysis. Residents Within the core there are 1,366 residents and in Old Ancaster the population is just less than 23,000. A sizeable population, it can support a broad range of retail businesses and services. The Primary Trade Area includes 140,793 residents. The population of Old Ancaster (which excludes the Meadowlands development) has steadily increased at a fast annual rate of 4.1%, whereas in the historic core it has fallen. Household growth is faster than population growth in all regions, reflecting the overall shift to smaller households as larger families are replaced with singles and smaller family couples (married and common law). There is very little difference in gender among the trade areas. Core Old Primary Secondary City of Ancaster Trade Area Trade Area Hamilton Population 2009 1,366 22,928 140,763 319,005 542,691 Annualized Growth -1.1% 4.1% 2.0% 1.2% 1.0% 525 7,864 52,402 124,689 211,923 -0.1% 5.0% 2.9% 2.0% 1.8% Male 48.4% 49.1% 48.6% 48.9% 49.3% Female 51.6% 50.9% 51.4% 51.1% 50.7% Households 2009 Annualized Growth Gender Source: Statistics Canada, Environics A review of the City of Hamilton’s growth projections for Ancaster reveals that the area is anticipated to grow to approximately 31,500 by 2031. Growth is anticipated in the areas to the south and north of the BIA. Future developments such as the potential Mount Mary, Woodland Manor redevelopment and other infill projects along Wilson will continue to add more residents to the village area. Urban Marketing Collaborative 19 Commercial Market Analysis Ancaster Heritage Village BIA City of Hamilton Projected Population and Employment Population Employment Annual Annual Node 2006 2031 Growth 2011 2031 Growth 2623 8,860 9,911 0.4% 1,467 1,705 0.8% 2624 3,805 5,399 1.4% 657 852 1.3% 2625 5,136 6,372 0.9% 802 1,055 1.4% 2641 1,989 2,053 0.1% 372 416 0.6% 2642 1,603 1,504 -0.3% 230 221 -0.2% 2643 5,745 6,246 0.3% 1,025 1,016 0.0% Total 27,138 31,485 0.6% 4,553 5,265 0.7% Source: City of Hamilton Note – this does not include all of the community known as Ancaster. Planning Units for City of Hamilton Urban Marketing Collaborative 20 Commercial Market Analysis Ancaster Heritage Village BIA Age Profile The Core contains a lower proportion of young children compared to elsewhere. In addition, there is a lower proportion of young adults from age 20 to 39 in the Core as well as Old Ancaster. Just 16% of the population is from 20 to 39 in the Core compared to 28% in the Secondary Trade Area. While the Core is consistently older in its age profile, Old Ancaster is a mix of young families on the fringes and older families in the centre. The median age of the Core is 49.0 compared 42.5 in Old Ancaster and 39.5 in the Secondary Trade Area (almost a 10 year difference). Proportionately, there are fewer younger children and older children in the Core. Primary Trade Secondary City of Area Trade Area Hamilton 24.9% 23.2% 23.0% 23.2% 10.6% 11.9% 13.5% 14.8% 14.3% 30 to 39 5.6% 9.8% 11.5% 12.7% 12.8% 40 to 49 14.5% 15.8% 14.7% 15.3% 15.5% 50 to 59 20.9% 17.3% 14.1% 13.5% 13.8% 60 to 69 13.2% 9.4% 10.0% 9.0% 9.4% 70+ 14.3% 10.9% 13.1% 11.7% 10.9% 49.0 42.5 41.4 39.5 39.8 Age Profile Core Old Ancaster < 20 20.9% 20 to 29 Median Age Source: Statistics Canada, Environics Children Age Profile Core Old Ancaster Primary Trade Area Secondary Trade Area City of Hamilton <6 10.8% 17.4% 18.9% 19.6% 19.8% 6 to 14 27.9% 32.8% 33.6% 34.3% 34.5% 15 to 17 19.9% 13.5% 12.3% 12.3% 12.2% 18 to 24 27.6% 26.4% 23.6% 22.1% 21.0% 25 + 13.8% 9.9% 11.6% 11.7% 12.1% Source: Statistics Canada, Environics Urban Marketing Collaborative 21 Commercial Market Analysis Ancaster Heritage Village BIA This map illustrates the sharp contrast in ages within the trade areas. In essence, those residents clustered in Old Ancaster and west of Highway 403 have an older age profile than those east. Also note that newer developments to the south of the LINC are younger compared to the older residents to the north. Median Age Source: Statistics Canada, Environics Urban Marketing Collaborative 22 Commercial Market Analysis Ancaster Heritage Village BIA Household Status and Size While there are a very low proportion of households that rent in the Core, the rate falls to 6.1% for Old Ancaster. Over 80% of households own in the Primary Trade Area. Interestingly, despite changes in age profiles, the number of persons per household in all trade areas is relatively consistent and high. Overall, household sizes are large in Old Ancaster. In the Core there are 38% of households that only have two people. In Old Ancaster there are 33% of households that have four-to-five people. In the Core and Old Ancaster there are a lower proportion of single residents as well as separated, divorced, or widowed residents compared to elsewhere. In addition, there is a fairly high mobility rate among households in the Core. 20% of households have moved there in the past five years. Old Primary Secondary City of Housing Status Core Own 87.3% 93.9% 80.5% 68.2% 69.8% Rent 12.7% 6.1% 19.5% 31.8% 30.2% Household Size Core Old Primary Secondary City of 1 19.7% 13.7% 21.1% 26.9% 25.9% 2 38.8% 32.1% 33.4% 31.0% 31.6% 3 12.3% 18.3% 16.4% 16.0% 16.4% 4 to 5 26.3% 33.2% 26.2% 23.3% 23.2% 6+ 2.8% 2.6% 3.0% 2.8% 3.0% Persons Per Household 2.59 2.87 2.62 2.50 2.52 Old Primary Secondary City of Ancaster Ancaster Trade Area Trade Area Hamilton Trade Area Trade Area Hamilton Source: Statistics Canada, Environics Marital Status – 15 Years + Core Single 21.5% 22.5% 23.6% 25.3% 24.3% Married, Common Law 63.9% 64.7% 60.7% 57.1% 57.8% Separated, Divorced, Widowed 14.6% 12.8% 15.7% 17.6% 17.9% Ancaster Trade Area Trade Area Hamilton Source: Statistics Canada, Environics Urban Marketing Collaborative 23 Commercial Market Analysis Ancaster Heritage Village BIA Mobility Core Old Ancaster Primary Secondary City of Trade Area Trade Area Hamilton Moved to Area Within 1 Year 7% 3% 4% 4% 4% Moved to Area Within 5 Years 20% 12% 13% 12% 12% Education, Occupation, and Household Income Ancaster residents and Primary Trade Area residents are well educated. There is a good combination of well paid occupations. This includes management, health, government and other quasi-government occupations. It also includes finance, business, and administrative occupations all for residents in the Core, Old Ancaster, and the Primary Trade Area. Interestingly, the trade area does include a number of farms. In addition, relative to other trade areas, the Core, Old Ancaster, and the Primary Trade Area have a higher proportion of residents employed in arts, culture, and recreation. In tandem with the higher education levels and occupation levels, the household income levels are high in the Core, Old Ancaster, and Primary Trade Area. Average household income in the Core is $175,967 which is 2.2 times higher than the average for the City of Hamilton. Old Primary Secondary City of Education – 15 Years + Core Less than High school 9.7% 12.0% 17.3% 22.1% 24.7% High school Graduate 27.7% 24.4% 24.6% 26.5% 27.2% Technical or College Degree, Cert. 24.4% 25.1% 27.3% 28.7% 29.0% University 38.2% 38.5% 30.8% 22.7% 19.1% Ancaster Trade Area Trade Area Hamilton Source: Statistics Canada, Environics Urban Marketing Collaborative 24 Commercial Market Analysis Ancaster Heritage Village BIA Old Primary Secondary City of Occupation – 15 Years + Core Finance, Insurance, Admin. 20.8% 19.7% 16.8% 16.8% 16.4% Sales/Services 17.5% 21.9% 22.8% 24.7% 24.4% Management 13.7% 14.0% 10.9% 9.0% 8.8% Health Profession 12.3% 8.4% 8.1% 7.4% 6.3% Education, Government, Faith, Social 11.6% 11.7% 12.7% 9.9% 8.3% Trades, Transport 10.1% 8.2% 10.8% 14.3% 16.7% Primary Industry 4.0% 2.6% 1.8% 1.5% 2.3% Manufacturing, Utilities 3.2% 2.0% 4.3% 5.9% 7.2% Art, Culture, Recreation, Sport 3.1% 3.4% 3.4% 2.8% 2.5% Natural and Applied Science 2.7% 6.3% 6.7% 5.9% 5.3% Old Primary Secondary City of Ancaster Trade Area Trade Area Hamilton Source: Statistics Canada, Environics Household Income Core Under $20,000 1.9% 2.4% 8.5% 14.3% 14.5% $20,000 to $39,999 4.9% 5.6% 13.9% 19.1% 19.7% $40,000 to $59,999 5.1% 7.0% 14.3% 17.0% 17.7% $60,000 to $79,999 7.5% 12.3% 14.4% 13.9% 14.0% $80,000 to $99,999 18.2% 19.7% 14.2% 10.7% 10.1% $100,000+ 62.3% 53.1% 41.7% 25.2% 24.0% Average Household Income $175,967 $143,475 $102,421 $81,852 $79,148 Median Household Income $106,586 $101,924 $78,473 $59,579 $57,565 Ancaster Trade Area Trade Area Hamilton Source: Statistics Canada, Environics The following map illustrates the high proportion of university educated residents in West Hamilton and the surrounding Ancaster Heritage Village area. Urban Marketing Collaborative 25 Commercial Market Analysis Ancaster Heritage Village BIA Source: Statistics Canada, Environics Urban Marketing Collaborative 26 Commercial Market Analysis Ancaster Heritage Village BIA The following two maps illustrate the high degree of residents employed in either management or government and quasi-government occupations particularly in the Ancaster Heritage Village area. Source: Statistics Canada, Environics Urban Marketing Collaborative 27 Commercial Market Analysis Ancaster Heritage Village BIA Source: Statistics Canada, Environics Urban Marketing Collaborative 28 Commercial Market Analysis Ancaster Heritage Village BIA The following map illustrates the very high average household income. Source: Statistics Canada, Environics Urban Marketing Collaborative 29 Commercial Market Analysis Ancaster Heritage Village BIA 2.4 Consumer Expenditure and Attitude Analysis The estimates of consumer spending by major category for the delineated trade areas are derived from the combination of (a) an analysis of income characteristics, and (b) an analysis of consumer expenditure and lifestyle information as determined by Statistics Canada and Environics1. The amount of consumer spending is a function of many influencing factors such as income, family size, and age. Of all the influencing factors, income is the most important because the more money people make, the more able and likely they are to spend. While the relationship between income and expenditures is strong, it is not a directly proportional relationship. As incomes rise (in real terms), a greater share of the income is spent on services, vacations, investments, and other non-consumable items. In addition, lifestyle plays an important factor because urban dwellers tend to spend more on eating out and less on larger family purchases such as large entertainment units, garden supplies, and large furnishings. The table on the following page provides a breakdown of major spending categories and selected shopping behaviour that relates to pinpointing those residents that would demand products and services from a boutique retail area. Expenditure and behaviour information on a per household basis for the trade areas are shown. They do not represent sales to Ancaster Heritage Village retailers. Rather, they illustrate household expenditures from the trade area residents that are spent throughout the City and region. It is noted that due to the high average household incomes in the Core and Ancaster Village, household expenditures are high in comparison to other trade areas. However, there are certain retail categories that households spend a high percentage of their income on relative to Primary Trade Area households. This information is extremely useful to retailers in evaluating market viability. 1 Environics updates consumer expenditure information from Statistics Canada and makes it available to UMC based on defined geographic trade areas. Urban Marketing Collaborative 30 Commercial Market Analysis Ancaster Heritage Village BIA Annual Average Household Expenditure Annual Per Household Expenditure Core Old Ancaster Primary Secondary Trade Area Trade Area City of Hamilton Convenience Food and Beverage, Convenience $8,497 $8,023 $6,432 $5,578 $5,569 Household Supplies $700 $803 $620 $541 $552 Alcohol Purchased at Stores $953 $829 $611 $531 $536 Tobacco $502 $771 $723 $742 $786 $1,380 $1,225 $1,056 $924 $915 $315 $228 $181 $150 $148 Home Furnishings $1,787 $1,679 $1,144 $950 $929 Household Equipment $1,160 $1,369 $987 $856 $857 Home Entertainment Equipment $756 $744 $545 $488 $504 Pets and Pet Supplies $553 $552 $446 $385 $400 Gardening and Nursery Products/Services $725 $544 $348 $273 $282 Reading $627 $486 $365 $307 $303 Sporting Goods $278 $302 $194 $162 $164 Toys $155 $159 $137 $117 $116 Electronics $10 $98 $77 $67 $68 Health Care Eye Care and Supplies Retail Merchandise Art, Hobby $56 $57 $47 $41 $40 Computer Equipment $735 $599 $449 $376 $358 Photographic Equipment and Supplies $416 $342 $253 $204 $196 Women's Clothing and Accessories $2,519 $2,073 $1,392 $1,114 $1,081 Men's Clothing and Accessories $1,585 $1,205 $875 $725 $727 Children’s Clothing and Accessories $548 $560 $381 $305 $300 Fabric, Notions, Sewing $186 $152 $138 $132 $134 $2,684 $2,298 $1,857 $1,634 $1,603 $459 $283 $270 $243 $235 $272 $154 $94 $70 $69 Eating and Drinking Restaurants Alcohol Served at Licensed Premises Services Dry Cleaning Personal Care Services $946 $775 $557 $464 $454 $1,053 $844 $519 $383 $376 Movies $218 $202 $155 $127 $121 Sporting Event $100 $82 $64 $56 $56 Arts Event $256 $181 $128 $100 $92 $1,287 $1,048 $815 $636 $619 Packaged Travel Entertainment Other Charity Source: Statistics Canada, Environics Urban Marketing Collaborative 31 Commercial Market Analysis Ancaster Heritage Village BIA The following map illustrates household expenditure on restaurants. It shows the relatively high expenditure by West Hamilton residents and, in particular, surrounding Ancaster Heritage Village that is a potential source of revenue for retailers. Source: Statistics Canada, Environics Urban Marketing Collaborative 32 Commercial Market Analysis Ancaster Heritage Village BIA Assatated, both the Core and Ancaster Village Trade Areas have extremely high average household incomes that are 40% to 70% higher than the Primary Trade Area. With the exception of tobacco products household expenditure on all retail product categories are higher than in the Primary Trade Area. Some product categories are exceptionally higher, some are very high, and others are just higher than elsewhere. A review of the Core and Ancaster Village Trade Areas reveals the following shopping behaviour characteristics. Urban Marketing Collaborative 33 Commercial Market Analysis Ancaster Heritage Village BIA Core Trade Area Household Spending Compared to Primary Trade Area Spend Exceptionally Higher Spend Very High Compared to Compared to PTA PTA Packaged travel Arts events Men’s clothing and accessories Women’s clothing and accessories Dry cleaning Photographic supplies Gardening Computer equipment Charity Sporting events Home furnishings Alcohol purchased Restaurants Eye care Reading material Alcohol served Personal care services Spend High Compared to PTA Children’s clothing and accessories Sporting goods Electronics Movies Home entertainment Food and beverage Health care Pets Art, hobby Home equipment Toys Household supplies Ancaster Village Trade Area Household Spending Compared to Primary Trade Area Spend Exceptionally Higher Spend Very High Compared to Compared to PTA PTA Dry cleaning Packaged travel Gardening Sporting goods Women’s clothing and accessories Children’s clothing and accessories Home furnishings Arts events Personal care services Urban Marketing Collaborative Men’s clothing and accessories Home entertainment Alcohol purchase Photographic supplies Computer equipment Reading material Movies Household supplies Household equipment Spend High Compared to PTA Charity Sporting events Electronics Eye care Food and beverage Pets Restaurant Art, hobby Toys Health care Alcohol served 34 Commercial Market Analysis Ancaster Heritage Village BIA Both trade areas spend very high amounts compared to Primary Trade Area residents on looking good. For example, they spend on things like dry cleaning, packaged travel, arts events, and personal care services like beauty, etc. They also spend high amounts on clothing. In the Core this is more on women’s and men’s clothing and accessories. In Ancaster Village this is more on Women’s and Children’s clothing and accessories. Both spend high amounts on gardening equipment and supplies. While there are higher proportions of children in Ancaster Village, there is a correspondingly high proportion of budgets spent on sporting goods, and on home entertainment. In the Core, the households tend to spend more on alcohol served. Overall, there is very high proportion of spending on home furnishings such as art, antiques, and rugs, and less on tools and lawn care equipment. The high expenditure on gardening is probably more related to services rather than on equipment. As stated, most expenditures related to running a household such as on food and beverage, household supplies, and health care supplies are higher than elsewhere. Urban Marketing Collaborative 35 Commercial Market Analysis Ancaster Heritage Village BIA 2.5 Consumer Survey – General Overview Background and Methodology To understand the consumer dynamics and retail potential, 100 intercept surveys were conducted in the Ancaster Heritage Village in October 2009. These surveys were complemented by the license plate surveys gathered in August 2009. Together, these surveys helped to define the trade areas. Based on the trade area analysis, a telephone survey was conducted of 200 residents in the Primary and Secondary Trade Areas. This included both ‘Visitors’ (visited Ancaster Heritage Village within the past six months) and ‘Non-Visitors’ (have not visited Ancaster Heritage Village within the past six months). These surveys were undertaken as part of the research required to understand the consumer market. It includes Ancaster Heritage Village’s strengths, weaknesses, opportunities, and threats as they relate to developing a stronger commercial retail core. The Telephone Survey examines the behaviour of a wider cross-section of regional residents who primarily visit the Wilson Street area on an occasional basis. The Intercept survey examines the behaviour of those who visit the Wilson Street area on a frequent basis. Market Penetration Of the total household population of 52,402 in the Primary Trade Area, 40% had visited Ancaster Heritage Village in the past six months. This is equivalent to 20,961 households. Urban Marketing Collaborative 36 Commercial Market Analysis Ancaster Heritage Village BIA Respondent Profiles Before proceeding to analyze the survey results, it is important to understand the way in which the profile of the various survey respondents differ from one another, and from the population of the Primary Trade Area. Differences in demographic characteristics offer important insights that can help explain survey results. Demographic Comparisons Visitor Non-Visitor Intercept Primary Trade Area 79 121 104 140,763 Female 78.5% 76.9% 68.2% 48.6% Male 21.5% 23.1% 31.8% 51.4% Primary Shopper 74.7% 79.3% 59.8% 74.7% 16 to 24 0.0% 0.0% 16.8% 17.3% 25 to 34 6.3% 5.8% 15.0% 13.6% 35 to 44 6.3% 11.6% 16.9% 15.4% 45 to 54 16.5% 19.0% 14.0% 18.3% 55 to 64 30.4% 22.3% 6.5% 15.0% 65 to 74 20.3% 18.2% 16.8% 9.3% 75+ 12.7% 13.2% 14.0% 11.1% 26.6% 33.1% 36.4% 48.1% Under $25,000 3.8% 11.6% 4.5% 12.0% $25,001 to $50,000 16.5% 18.2% 13.6% 22.0% $50,001 to $75,000 16.5% 24.0% 6.1% 18.0% $75,001 to $100,000 16.5% 11.6% 28.8% 16.0% $100,000 + 20.2% 14.0% 37.0% 32.0% Refused/Don’t Know 26.6% 20.7% 38.0% Demographic Base Population Gender Age Profile Children at Home Yes Household Income Urban Marketing Collaborative 37 Commercial Market Analysis Ancaster Heritage Village BIA Demographic Comparisons Visitor Non-Visitor Intercept Primary Trade Area Under a year 1.3% 0.8% 5.6% n/a 1 to 5 years 22.8% 33.1% 32.7% n/a 6 to 10 years 21.5% 24.8% 25.2% n/a 11 to 15 years 12.7% 13.2% 16.8% n/a 16 to 20 years 13.9% 9.9% 5.6% n/a 20 years + 27.8% 18.2% 14.0% n/a Working full-time 38.0% 47.1% 42.9% n/a Working part-time 16.5% 6.6% 15.2% n/a Retired 29.1% 28.9% 22.9% n/a Homemaker, at home 3.8% 5.8% 10.5% n/a Student 5.1% 5.0% 6.7% n/a Other non-working 7.6% 6.7% 1.9% n/a Demographic Length of Residency Employment Status A summary of some of the most significant differences between the visitors, non-visitors and intercept respondents is provided below. Ancaster Heritage Village Visitors Females Older – 55 years old + Higher household income Long-term resident Non-visitor Telephone Survey While Ancaster Heritage Village attracts all types of residents whether working fulltime, part-time, or other, demographic groups who have a higher probability of not visiting Ancaster Heritage Village include a significant proportion of: Males 16 to 24 year olds lower-to-middle household incomes and newer residents Urban Marketing Collaborative 38 Commercial Market Analysis Ancaster Heritage Village BIA The main reasons residents do not visit Ancaster Heritage Village include the following: Primary Reason for Not Visiting Ancaster Heritage Village Reason Non-Visitor Other stores are closer to me 21.7% Nothing to do there, not enough to do 18.2% Inconvenient to get to, traffic flow 19.9% Too far away/not close to home 8.3% No transportation options 6.6% Never heard of it, unfamiliar, don’t know where it is 5.8% No need 5.0% Don’t shop much, don’t get out much 4.1% Too busy 3.3% Not interested 2.5% Not enough parking 1.7% Poor selection of stores 1.7% Too expensive 1.7% Better stores elsewhere 1.7% Do not feel safe 0.8% Other 5.0% What are the main reasons you have not visited Ancaster Heritage Village recently? Primarily, middle-to-lower household income residents were less likely to visit Ancaster Heritage Village. Those who live in L9G ( built up Ancaster area west of Highway 403)were very likely to visit due to proximity but as the distance from the BIA grew, residents were less likely to visit. Those in Dundas, West Hamilton, and the West Mountain were equally likely to not visit as to visit. Beyond these areas residents were much less likely to visit unless they had higher household incomes. Non-Visitor postal codes included a mix of residents from nearby neighbourhoods such as Dundas, West Hamilton, Meadowlands, and the West Mountain. Urban Marketing Collaborative 39 Commercial Market Analysis Ancaster Heritage Village BIA This compares to the postal codes of visitors whereby local residents are very loyal. Residents in Dundas, West Hamilton, Meadowlands, and West Mountain are equally likely to be visitors of Ancaster Heritage Village as to be non-visitors. Urban Marketing Collaborative 40 Commercial Market Analysis Ancaster Heritage Village BIA Improvements and related comments by non-visitors include: Improvements to Ancaster Heritage Village to Encourage Non-Visitors to Reconsider Reason Visitors Nothing 53.7% More advertising, flyer, let me know what is out there 14.0% Better location closer to my home 10.7% More stores, better selection of stores, more variety of restaurants 6.7% Improve parking, more parking 4.1% Better public transit access 2.5% More grocery, food stores 2.5% More special events. Activities 2.5% Wider traffic lanes, improve traffic flow 1.7% Need someone to drive me 1.7% More local businesses 0.8% Better hours of operation, extended hours, open in the evening 0.8% Miscellaneous 7.4% What changes could be made to Ancaster Heritage Village to encourage you to go there more often? Urban Marketing Collaborative 41 Commercial Market Analysis Ancaster Heritage Village BIA Activities of Ancaster Heritage Village Visitors People who visit Ancaster Heritage Village primarily come for eating-related activities. The primary reasons include: Primary Reason for Visiting Ancaster Heritage Village Reason Visitor Intercept Eating, drinking, café 20.3% 44.9% Shopping 13.9% 9.3% Grocery, food shopping 12.7% 0.9% Medical, Vet 7.6% 2.8% Passing through 6.3% 2.8% Beauty services 5.1% 3.7% Meeting people 5.1% 3.7% Library 3.8% 1.9% Culture, entertainment, music, event 3.8% 0.0% Funeral 3.8% 0.0% Fitness, recreation, hiking, biking 2.5% 7.5% Automobile service 2.5% 0.9% Working, business, meeting clients 2.5% 0.0% Local resident 1.3% 10.3% Drug store, pharmacy 1.3% 2.8% Other personal services 1.3% 2.8% Professional business 1.3% 0.0% Education, school, learning 1.3% 0.0% House of worship 0.0% 4.7% Farmer's market 0.0% 0.9% Social organization 0.0% 0.0% The last time you visited Ancaster Heritage Village, what was your primary reason for going?/ Primary reason for being on Wilson Street today? (unaided) Urban Marketing Collaborative 42 Commercial Market Analysis Ancaster Heritage Village BIA As discussed, the overall strength of Ancaster Heritage Village is eating-related activities. Using the village as a place to meet is also very popular. For telephone visitors, shopping was a highly rated activity as was grocery/food shopping2. In addition, 26% stated they did not have another reason other than their primary purpose. Primary and Other Reasons Combined for Visiting Ancaster Heritage Village on Last Visit Reason Visitor Intercept Eating, drinking, café 43.1% 65.5% Shopping 38.0% 16.8% Grocery, food shopping 24.1% 2.8% Medical, Vet 11.4% 3.7% Beauty services 8.9% 4.6% Library 7.6% 8.4% Meeting people 6.4% 28.0% Passing through 6.3% 14.0% Drug store, pharmacy 5.1% 3.7% Funeral 5.1% 0.0% Fitness, recreation, hiking, biking 5.0% 12.2% Automobile service 5.0% 0.9% Other personal services 3.8% 3.7% Culture, entertainment, music, event 3.8% 0.0% Local resident 2.6% 12.2% Professional business 2.6% 0.0% Education, school, learning 2.6% 0.0% Working, business, meeting clients 2.5% 0.0% Social organization 2.5% 0.0% House of worship 1.3% 5.6% Farmer's market 1.3% 0.9% Nothing 35.4% 26.2% Primary and other reasons for being on Wilson Street today or last time you visited? (unaided) 2 As the telephone respondents were clearly given the boundaries of the BIA study area some may have inadvertently included the grocery stores in their thinking of Ancaster Heritage Village. Urban Marketing Collaborative 43 Commercial Market Analysis Ancaster Heritage Village BIA Visitation Visitation is split between frequent, average, and infrequent visitation amongst visitors. As stated, the intercept survey respondents were more frequent visitors to Ancaster Heritage Village. Of these respondents, males, long-term residents, locals, and lower household income residents were most likely to visit the area several times a week. Among the telephone survey respondents, there was a relatively good split between frequent, average, and infrequent visitation. All the frequent visitation was not from just the immediate area but also from further away. Ancaster Heritage Village Visitation Visitors Intercept Daily 5.1% 7.5% Two times a week or more 15.2% 16.8% Once a week 15.2% 28.0% Less than once a week but more than once a month 15.2% 14.0% Once a month 12.7% 9.3% Less than once a month 11.4% 7.5% Two to six times per year 19.0% 5.6% Less than twice per year 6.3% 2.8% First time/ Don’t know 8.4% How often do you come to Ancaster Heritage Village? Given that there are only 101 retail businesses in the area, it is not surprising that the length of visitation is short (30 minutes to 2 hours). It was mentioned by non-visitors that there was a lack of stores in the area. Not only do intercept respondents visit more frequently they also tend to stay longer. However, there are a number of telephone survey respondents who indicated they stay for very long periods. Clearly, people like to come to Wilson Street and Ancaster Heritage Village purely to socialize. Length of Visitation Visitors Intercept Less than 30 minutes 19.5% 1.9% 30 minutes to 1 hour 40.2% 31.8% 1 to 2 hours 22.1% 42.1% 2 to 3 hours 9.1% 17.8% 3 hours + 9.1% 6.5% When you come to Ancaster Heritage Village, how long do you stay on average? Urban Marketing Collaborative 44 Commercial Market Analysis Ancaster Heritage Village BIA Transportation and Parking A large percentage of visitors drive to Ancaster Heritage Village. However, for local residents, walking and bicycling to Ancaster Heritage Village is a method used by a significant number of visitors (19% of intercept survey respondents). This is especially true for the active, older population base. Younger residents do not have the spare time to devote to these leisurely pursuits due to family obligations. This point adds to Ancaster Heritage Village’s strength as an accessible, local neighbourhood location. Public Transportation is not well used by Ancaster Heritage Village visitors because of its limitations. There are two bus lines including Bus 16 that travels through Ancaster and Meadowlands and Bus 5A and 5C that comes from Downtown, through McMaster, and turns east at Wilson Street East and Rousseaux Street. Bus 16 operates approximately every hour during the late morning and early afternoon and then every half hour in the late afternoon. Buses 5A and 5C operate approximately every half hour. It is also noted that the Ancaster Heritage Village BIA is conducting a parking supply study. Method of Transportation Visitors Intercept Park in a business or plaza specific lot 43.5% 33.6% Walk, bicycle 5.8% 18.7% Park at library or church parking lot 10.1% 16.8% Park on Wilson St. 15.9% 11.2% I am usually driven, dropped off 4.3% 10.3% Park in Municipal parking lot 14.5% 5.6% Public transportation, bus 5.8% 3.7% For your most recent visit, how did you travel to Ancaster Heritage Village? Urban Marketing Collaborative 45 Commercial Market Analysis Ancaster Heritage Village BIA In terms of the overall image of Ancaster Heritage Village, it is lovely, pleasant, upscale, fancy, and trendy combined with a historic, small-town atmosphere. Image of Ancaster Heritage Village Visitors Intercept Nice, lovely, pleasant 16.5% 7.5% Good, excellent, wonderful 12.7% 2.8% Upscale, posh, fancy, classy 6.3% 15.0% Quaint, charming 6.3% 7.5% Convenient, accessible 4.8% 0.0% Friendly, welcoming, inviting 3.8% 5.6% Expensive, pricey 3.8% 5.6% Boring, monotony 3.8% 0.0% Serene, relaxed 2.6% 1.9% Attractive, beautiful, pretty, gorgeous 2.5% 2.8% Unique, a special place 2.5% 1.9% Pedestrian-friendly, walkable 2.5% 0.0% Occasional, sporadic 2.5% 0.0% Old-fashioned, nostalgic, antique feeling, heritage 1.3% 12.1% Trend, trend setting, hip, fashionable 1.3% 9.3% Small, small-townish, village like 1.3% 4.7% Quiet 1.3% 1.9% Homey, home-town, home 0.0% 8.4% Clean 0.0% 3.7% Rustic - country feel 0.0% 3.7% Changing, evolving 0.0% 2.8% Variety - all I really need 0.0% 1.9% Potential, encouraging 0.0% 1.9% What one word or group of words best describes Ancaster Heritage Village? Urban Marketing Collaborative 46 Commercial Market Analysis Ancaster Heritage Village BIA Strengths and Weaknesses Ancaster Heritage Village received a comparably average rating of 7.85 out of 10.0 from the visitor telephone survey and a very positive review of 8.77 out of 10.0 from the intercept survey. Those visitors who visit more frequently are more positive about the village than those who visit on an infrequent basis. In addition, it is interesting to note that the intercept survey respondents listed all the factors as important to extremely important. Not surprisingly, the most important factors visitors use to determine where they go to shop or eat include the quality of the service and the cleanliness and overall appearance. As one interviewee noted, the store must be pristine. The quality of the stores and restaurants, perceived safety levels, the overall atmosphere, easy to get to, and convenient parking were also very important factors for both intercept and telephone survey respondents. These factors were of greater importance to higher income households, long-term residents, and locals. Ancaster Heritage Village’s top ratings are associated with its: safety, cleanliness, up-todate businesses, family friendly atmosphere as well as its welcoming overall atmosphere. However, visitors believe that there is room for improvement. Along with the requirement for excellent service and overall cleanliness, visitors believe that all factors were not being achieved by Ancaster Heritage Village. The top rated deficiency is convenient parking, price of goods, and selection of stores and restaurants. In addition, visitors were most critical and believe there is room for improvement related to the quality of service provided and the quality of the stores as well as hours of operation. Urban Marketing Collaborative 47 Commercial Market Analysis Ancaster Heritage Village BIA Importance versus Ancaster Heritage Village’s Ratings — Gap Analysis - Visitors Visitors Importance Factor Wilson Street Rating Gap Cleanliness and overall appearance 8.72 8.41 -0.31 Excellent service 8.67 7.74 -0.93 Easy to get to 8.39 7.88 -0.51 Clean, up-to-date businesses 8.38 8.09 -0.29 Safety 8.30 8.21 -0.09 Convenient parking 8.30 7.16 -1.14 Quality of the stores and restaurants 8.18 7.46 -0.72 Price of goods and services 8.00 6.11 -1.89 Overall atmosphere 7.71 7.88 0.17 Selection of stores and restaurants 7.59 6.34 -1.25 Brands that I trust 7.55 6.81 -0.74 Family friendly environment 7.47 7.73 0.26 Open in the evenings 7.10 5.93 -1.17 Places to socialize 6.17 6.96 0.79 Unique, one-of-a-kind items 6.06 6.82 0.76 Urban Marketing Collaborative 48 Commercial Market Analysis Ancaster Heritage Village BIA Importance versus Ancaster Heritage Village’s Ratings — Gap Analysis - Intercept Intercept Importance Factor Wilson Street Rating Gap Excellent service 9.86 9.10 -0.76 Cleanliness and overall appearance 9.86 9.25 -0.61 Quality of the stores and restaurants 9.84 9.12 -0.72 Safety 9.81 9.35 -0.46 Overall atmosphere 9.73 9.21 -0.52 Price of goods and services 9.70 7.96 -1.74 Selection of stores and restaurants 9.66 8.37 -1.29 Places to socialize 9.61 8.98 -0.63 Easy to get to 9.55 9.16 -0.39 Clean, up-to-date businesses 9.54 9.32 -0.22 Convenient parking 9.50 7.75 -1.75 Family friendly environment 9.48 9.34 -0.14 Unique, one-of-a-kind items 9.14 9.01 -0.13 Open in the evenings 9.02 8.61 -0.41 Brands that I trust 9.00 8.67 -0.33 Urban Marketing Collaborative 49 Commercial Market Analysis Ancaster Heritage Village BIA Stores and Services That Would Encourage Increased Visitation Visitors Intercept More stores, better selection 25.3% 5.6% Improve parking, more parking 15.2% 7.5% Closer to home 12.7% 0.0% More variety overall 10.1% 4.7% Less pricey, cheaper, more affordable 6.3% 11.1% More variety of restaurants, coffee shops 6.3% 4.7% Better hours of operation 6.3% 0.0% Crosswalks with lights, improve crosswalks for pedestrians 5.1% 3.7% More local independent businesses, no more big chains 3.8% 1.9% Wider streets, wider traffic lanes, improve traffic flow 2.5% 6.5% More coffee places 2.5% 1.9% Better signage 2.5% 0.0% Better bus access, shuttle bus, public transit 1.3% 7.5% More bookstores 1.3% 2.8% More clothing, youthful clothing 1.3% 3.7% Brighter, more lights 0.0% 3.7% People drive too fast, should discourage poor driving 0.0% 2.8% Less traffic 0.0% 1.9% Bakery 0.0% 1.9% Nothing 2.5% 33.6% Other 28.0% 0.0% What other stores, restaurants, entertainment, or cultural amenities would bring you to Ancaster Heritage Village more often? There is a mix of need for more stores and improved selection especially related to more unique items. In addition, there is a strong need to improve traffic, congestion, and parking. Market Share A review of market share of the trade area visitors and non-visitors is a good benchmarking tool for going forward. Although market share is relatively low across most retail store categories surveyed, it does show the strength of the area in eating and drinking. Urban Marketing Collaborative 50 Commercial Market Analysis Ancaster Heritage Village BIA Market Share of Ancaster Heritage Village Market Share Eating and drinking 6.1% Clothing and shoes 2.9% Gifts 2.4% Beauty, spa, barber services 1.6% Drug store and pharmaceutical 1.4% Sporting goods 1.0% What percentage of your household spending budget was spent in Ancaster Village? Attitudes The following are perceptions and attitudes of visitors and non-visitors. The following is based on a scale of one to five with one being strongly disagree and five being strongly agree. Attitudes Visitors Non-Visitor Healthy choices are important to me and my family 4.42 4.37 I enjoy keeping fit 4.08 3.99 I look for broad selection of choice when shopping 4.00 3.83 I am prepared to pay more for good quality 3.95 3.85 I play close attention to ingredients in products 3.95 3.83 I enjoy entertaining 3.85 3.68 I enjoy dressing for formal occasions 3.43 3.03 I love to cook 3.40 3.49 Material things really don't mean that much to me 3.39 3.50 I like to stay abreast of fashions and styles 3.38 3.09 I feel most comfortable in jeans 3.32 3.46 I love to spend time looking at decorating items 3.19 3.00 I will pay a little more to save time shopping 3.04 3.25 There is a lot of stress in my life 2.81 2.92 I am more of a spender than a saver 2.75 2.61 I generally look for designer labels when shopping 2.42 2.23 I prefer to dine out as opposed to cooking at home 2.40 2.50 Agreement with statements Urban Marketing Collaborative 51 Commercial Market Analysis Ancaster Heritage Village BIA Attitudes related to health are extremely important. This reflects a strong sense of identity and individualization. As stated throughout, Ancaster Heritage Village visitors are very demanding when it comes to quality of service and are very knowledgeable about products and services. It is interesting to note that the statements “I feel most comfortable in jeans”, “I like to stay abreast of fashions and styles”, and “I enjoy dressing for formal occasions” all received similar ratings. There is a mix of casual comfort but refined elegance as well. This too was reflected in the image of shopping in Ancaster Heritage Village whereby visitors stated that the area was both upscale, classy, and trendy, as well as homey and comfortable. While visitors will spend more for quality they are very reluctant to spend more than what they perceive the value of the product or service to be. Finally, it is also interesting to note that the statement “I prefer to dine out as opposed to cooking at home” received a low rating given the fact that eating was such as highly rated activity in Ancaster Heritage Village. However, in the household expenditure analysis, eating at restaurants was relatively low in the expenditure categories. Urban Marketing Collaborative 52 Commercial Market Analysis Ancaster Heritage Village BIA 3.0 Retail/Commercial Audit An audit of the existing retail/commercial businesses in Ancaster Heritage Village BIA was conducted during September 2009, in order to understand the current retail/ commercial situation in the area. The area studied includes the Ancaster Heritage Village corridor of Wilson Street East from Montgomery Drive to Dalley Drive. It is comprised of all retail commercial uses as well as other easily accessible retail spaces. Large office buildings, houses of worship, libraries, schools and other buildings were noted but not included in the audit. In completing this inventory, the strengths and weaknesses of Ancaster Heritage Village’s business mix were identified. The following are the salient findings based on the retail audit: There are 101 retail commercial businesses representing approximately 175,000 sq. ft. of space. Vacancy is relatively low at 3%. In addition, there are several buildings that are in the process of opening. These have not been included under a specific category but are not considered open as of yet. Over 50% of the total square footage is devoted to personal and professional services. This includes medical offices, professional offices such as lawyers, insurance, real estate, etc., as well as beauty-type services. Eating is the second largest category representing 16% of the total square footage. This represents a sizeable portion of the village. Retail merchandise accounts for just over 10% of the total square footage. There is a mix of apparel, footwear, and leisure based businesses. This is a small amount of retail. Convenience goods account for a very small proportion of the total square footage. This is represented by a convenience store and two small pharmacies. Overall, the quality of the business operations is excellent. There are several very well run businesses that do an excellent job at merchandising. The village is extremely long. The entire length is over 6,000 feet making it too long for one person to walk the entire length for a shopping exercise. The retail core running from Mount Mary to St. John’s Church is a more manageable 3,000 feet. However, this is still on the long side. The overall look is very historic. Urban Marketing Collaborative 53 Commercial Market Analysis Ancaster Heritage Village BIA Most businesses have their own parking lots and there is limited on-street parking. According to the City of Hamilton there are approximately 26 on-street parking spaces and 46 spaces in the municipal parking lot. Currently, there is limited crossshopping due to the retailer types (destination and appointment based retailing), the building configuration, and the parking arrangements (note - this can be changed). There has been significant investment in the village over the years. A review of the retail building permits (excluding signage) issued within the BIA area includes the following. Retail Building Permits Year Retail Building Permits 2001 $511,900 2002 $2,230,000 2003 $46,900 2004 $99,350 2005 $97,500 2006 $2,591,000 2007 $144,500 2008 $154,850 YTD 2009 Total $0 $5,875,950 Source: City of Hamilton Urban Marketing Collaborative 54 Commercial Market Analysis Ancaster Heritage Village BIA Ancaster Heritage Village Commercial Audit – Number of Businesses and Square Footage Number of Businesses Square Footage Number % of Total Sq. Ft. % of Total Apparel and Accessories 6 5.9% 8,300 4.7% Home 1 1.0% 800 0.5% Leisure 8 7.9% 9,100 5.2% Other General Merchandise 0 0.0% 0 0.0% Total Retail Merchandise 15 14.9% 18,200 10.4% Convenience Store 1 1.0% 1,500 0.9% Drug Store 2 2.0% 3,000 1.7% Grocery 0 0.0% 0 0.0% Specialty Food 1 1.0% 400 0.2% Total Convenience 4 4.0% 4,900 2.8% Café 4 4.0% 4,400 2.5% Restaurant 4 4.0% 22,800 13.0% Total Eating 8 7.9% 27,200 15.6% Total Personal Services 5 5.0% 3,100 1.8% Beauty, Hair, Spa, Nail 7 6.9% 9,400 5.4% Professional Services 28 27.7% 48,700 27.9% Medical Services 24 23.8% 30,100 17.2% Total Services 64 63.4% 91,300 52.2% Automotive 1 1.0% 8,500 4.9% Recreation, Entertainment 2 2.0% 9,000 5.1% Total Occupied 94 93.1% 159,100 91.0% Vacant - Redevelop 3 3.0% 10,500 6.0% Vacant 4 4.0% 5,200 3.0% 101 100.0% 174,800 100.0% Retail Merchandise Convenience Eating Services Total Source: UMC, City of Hamilton Urban Marketing Collaborative 55 Commercial Market Analysis Ancaster Heritage Village BIA Urban Marketing Collaborative 56 Commercial Market Analysis Ancaster Heritage Village BIA 4.0 Strengths, Weaknesses, Opportunities, and Threats Strengths Beautiful, Historic, and Serene Environment - Natural environment on the cliff of the escarpment including beautiful wooded forests, parks, year-round trails, waterfalls, natural springs, golf courses – creates a natural, serene, and relaxed atmosphere - Heritage – beautifully restored heritage buildings, attention to historic details in many newer buildings - Good community facilities including recreation, religious, library, town hall building – that help foster a town centre idea Consumers - Very high income and well educated consumers - Population growth in the local area - Sizeable population base of over 22,000 residents within the Old Ancaster Trade Area (excluding Meadowlands) - Propensity to spend on quality including both casual and formal attire Traffic/Visibility - High vehicular volumes - Only major street through Ancaster (with the exception of Highway 403) - Centre of the neighbourhood — easy socialization Business Climate - High local business ownership and/or involvement - Product mix that matches the high quality buildings and beautiful setting Urban Marketing Collaborative 57 Commercial Market Analysis Ancaster Heritage Village BIA Weaknesses Traffic/Visibility - Very high vehicular volumes disaffecting retailer sales potential - Parking – perceived lack of parking - High service demands from visitors means that they expect to be able to park in front of the store they want to visit Business Climate - Lack of variety and lack of retail merchandise - Lack of convenience retail - Streetscaping that doesn’t match the higher-end appeal - Street conditions are tired-looking - Destination business district – appointment based business district Perception vs. Reality - Image as too expensive, high-end, and snobby Business Retention - Rising rents may push independents out Opportunities Build upon the unique historical setting to create a tranquil but fun shopping street based on the principles of health, relaxation, and rejuvenation including the following examples: - Beauty and spa services - Trails and natural setting - Natural springs and waterfalls - Health and wellness - Abundance of greenery - Socialization spaces - Recreational spaces - Houses of worship - Art and culture - Historic buildings and attention to detail in new buildings - Appreciation for quality - Excellent customer service attention Develop mixed-use infill projects that include retail along with office or residential. Look at key catalyst sites such as the post office Maintain low building heights Match current setbacks of historic buildings Slow traffic or regulate traffic so that those who want to be in Ancaster Heritage Village are there to enjoy the setting and not just use it as a pass through Urban Marketing Collaborative 58 Commercial Market Analysis Ancaster Heritage Village BIA Opportunities include: - Appeal to locals for convenience specialty food goods - Offer unique destination oriented retailers – develop direct marketing database - Develop more community amenities to bring the local residents to the village on a frequent basis. - Additional conversion of residential to commercial may add more retail space - Unique restaurants that build upon the existing strengths of Ancaster Heritage Village - Gather momentum for increased tourism - Assess the mix of nationals, regionals, and independents - Address parking issues - Create synergy with local neighbourhood activities and arts and entertainment activities Threats Other higher-end streets such as Downtown Oakville, Downtown Burlington, Toronto, Downtown Dundas, that are pursuing the same retailers and target markets Any new development that is currently proposed, accepted, or under construction (such as Innovation Park at Aberdeen Avenue and Highway 403) may provide more competition, especially for smaller sized retailers and restaurants that accompany the big box retailers Difficult to find a balance between independents and nationals — too many nationals and franchises affect the unique character attributes and create sameness to the local and regional malls Required maintenance of the street will affect sales for existing retailers; this has to be taken into consideration Urban Marketing Collaborative 59 Commercial Market Analysis Ancaster Heritage Village BIA 5.0 Ancaster Heritage Village Commercial Action Plan 5.1 Ancaster Heritage Village Commercial Realities, Niche, Vision, and Principles In November 2009, a BIA workshop was conducted to review the facts of the analysis and to provide input into the vision and action plan. A further small meeting of select BIA members was held to debate and refine some of the ideas related to the action plan. During the visioning session, participants were asked to use images to tell their story of the future on Ancaster Heritage Village. In addition, they were asked to write on the map of the BIA specific ideas that they would like to see happen. This included retail opportunities, beautification and streetscaping ideas, as well as other ideas. Urban Marketing Collaborative 60 Commercial Market Analysis Ancaster Heritage Village BIA Strong and repeated ideas related to families, community, care, art, good food, cooking, quality design, the natural environment, tourism, fashion and overall specialized retail, gateways, and parking. From these workshops and BIA meetings, the action plan and overall niche/vision was developed. The action plan is structured to help Ancaster Heritage Village BIA capitalize upon its strengths. However, a number of commercial realities facing Ancaster Heritage Village commercial businesses include: From a merchandising standpoint, destination retail businesses must be exceptional to survive; mediocre retail businesses will not last. Thus, a professional approach to retail operations must be undertaken. Rents are higher than elsewhere making it risky to start a new business in Ancaster Heritage Village. Higher rents and property values tend to attract professional service firms – lawyers, accountants, and medical offices – that are willing to pay the higher rents/property values. Rents for retailers will have to be adjusted downwards. Ancaster Heritage Village commercial businesses must differentiate themselves. There is very much suburban competition from the Meadowlands, Lime Ridge Mall, and Walmart Plaza. Urban Marketing Collaborative 61 Commercial Market Analysis Ancaster Heritage Village BIA Currently there is a very high proportion of professional services in the village. In addition, a vast majority of the businesses are primarily destination and appointment-based retailers (e.g., medical services, beauty services, restaurant dining, and retailers that have a highly specialized – narrow and deep merchandising such as Hanley Shoes and Needles). Ancaster Heritage Village has a well-recognized brand for residential but is less known for shopping. Branding for Ancaster Heritage Village is important. Semantics becomes key – the meaning of ‘Heritage’ must be clearly defined, in the context of urban design. This relates to buildings and streetscapes, marketing and events, customer relations, etc. Niche and Vision The overall vision for Ancaster Heritage Village will be built upon the idea of heritage, respite, rejuvenation, and a small shopping village. It will be family focused with a range of town functions including the library, cultural attractions, a community centre, recreational facilities, along with mixed-use buildings with offices or residential above. People who visit Ancaster Heritage Village will be able to absorb the atmosphere, relax, and, when they leave, they will feel refreshed. Overall, Ancaster Heritage Village commercial businesses must have a focus that works to support the local population first and foremost. It would be very easy to recommend a strategy that focuses on the tourist market to become akin to places such as Mount Tremblant, St. Jacobs, Merrickville, or Niagara on the Lake. While these are interesting places, they lack focus as it relates to the local population, and are primarily tourist destinations. This means they are at the mercy of exchange rates and fickle tourists. The retail strategy for Ancaster Heritage Village must work to enhance the needs of the local population to want to shop and visit Ancaster Heritage Village as a complete, livable, and walkable community. The visitor strategy then works to re-enforce an authentic small-town atmosphere. The visitors will want to come and experience this slice of “paradise” about which the local residents are very passionate. The visitors will be immersed in the local Ancaster Heritage Village culture (third oldest town in Ontario) that is authentic, real, and heartfelt. Visitors will be able to “live the Ancaster Heritage Village way of life” for a brief period. This strategy will place Ancaster Heritage Village in a unique situation compared to other smaller towns in Canada and the United States. Ancaster Heritage Village becomes a sort of club to which residents want to belong. The village core becomes the place where locals socialize and interact – a type of third place away from work/volunteer commitments or home. This is where they meet their friends and neighbours at the Purple Pony, Rousseaux House, Tim Hortons or browsing through Urban Marketing Collaborative 62 Commercial Market Analysis Ancaster Heritage Village BIA Needles. To this end, the physical improvements must work towards enhancing the latter brand image of belonging, in addition to fostering a sense of casual socialization for local residents in a more intimate retail setting. To accomplish this, there needs to be a better understanding of traffic flow, both in terms of vehicular origins and the final destinations that these vehicles are travelling to. With this information, it will be possible to determine how traffic that is only passing through the village core can be diverted. A strategy that focuses on local residents related to heritage, art, culture, recreation, and entertainment will provide a return on investment. Consumers want to be entertained in the retail commercial locations of Ancaster Heritage Village. They demand excellent service, knowledgeable staff, and a fun and casual atmosphere. Ancaster Heritage Village will be the vibrant, active centre of a community node in the City of Hamilton and the community of Ancaster. It is a community that wants to foster the notion of being known as close knit and friendly. It will be the “town/community centre” steeped in tradition and history, with buildings, streets and streetscapes that reflect its unique past and its role as the town meeting and gathering place. It will: Incorporate the small-town tradition between the country and the city. The word “quaint” does not fully encapsulate the entire atmosphere of Ancaster Heritage Village. It is more sophisticated than most rural towns and villages due to its proximity to Hamilton and the Greater Toronto Area. Maintain its small-town tradition with links to the surrounding rural, escarpment, natural springs, waterfalls, and adjacent urban areas. Be a sociable and friendly community whose heritage and rural traditions will be preserved and enhanced. Maintain its historic village core as a central meeting place and shopping area for the community and adjacent rural and urban areas. Be an environmentally aware community with a linked green space system, including protected natural heritage features. Be economically and physically accessible to people of all ages and interests. Be a well-designed community incorporating its heritage roots with attractive streetscapes and building designs that encourage socialization in a friendly manner. The scale of development has to have a pedestrian-oriented focus, with strong linkages to trail systems that link residential to the commercial areas along Wilson Street, as well as to recreational activities. The ease of vehicular access to the village and the provision of parking areas are effectively promoted. This enhances visits to businesses and recreational, cultural, entertainment, and religious venues. A community centre would reinforce the village’s role as a meeting place, and serve as a focal point. The Ancaster Urban Marketing Collaborative 63 Commercial Market Analysis Ancaster Heritage Village BIA Town Hall/library and nearby recreation areas should also serve as a meeting place for residents and visitors. As stated, the village’s first priority is to serve its local community with retail stores, businesses, recreation, entertainment and cultural opportunities that support, and are supported by, the nearby residents. It will be this focus on a real and authentic place that will engender visitor traffic to want to experience and participate in Ancaster Heritage Village’s unique sense of belonging and way of life. Principles Principle – Small Town Atmosphere Any change in Ancaster Heritage Village’s commercial businesses should maintain or enhance its unique small-town character. This principle is intended to preserve the community’s unique small-town character and strong historic heritage. What should also be upheld are ties to the surrounding rural community and accessibility to Hamilton and the Greater Toronto Area. The qualities and features, which have been identified as important to Ancaster Heritage Village’s character, include: The home-town feel Exceptional personal service Preservation and enhancement of the many heritage features Linkages to the village’s natural heritage and recreation opportunities Objectives To provide for new development which will be respectful of the heritage of the community and its relationship with the surrounding region through appropriate design To protect the heritage of Ancaster Heritage Village through the preservation and enhancement of heritage buildings, streetscapes and other features To provide for a linked open space and trail system including natural attributes and parkland as a central feature of Ancaster Heritage Village – those things that will reinforce its special character To provide for business development as well as housing forms in the village core, which is consistent with the character of Ancaster Heritage Village To encourage an urban design and development strategy at all levels of development that provides opportunities for social interaction and communications among residents and activity centres Urban Marketing Collaborative 64 Commercial Market Analysis Ancaster Heritage Village BIA Principle – Preserve and Enhance the Integrity of the Natural Environment Any change in Ancaster Heritage Village should be undertaken in a manner that will preserve and enhance the integrity of the natural environment of the community. This helps to ensure that the impact on environmental sustainability is considered as a major factor in the assessment of any proposed changes in Ancaster Heritage Village. Environmental sustainability refers to the preservation and enhancement of the natural environment including surface and groundwater systems, natural habitats, landforms, natural area corridors and the establishment of linkages between natural features. Objective To maintain and enhance the natural systems Principle – Economically Sustainable Community Decisions made with respect to the future of Ancaster Heritage Village will reflect the need to establish an economically sustainable community. This encourages a broadly based planning approach that will maintain, and where feasible, enhance the economic health of Ancaster Heritage Village. As one principle, economic vitality (e.g., sound commercial businesses) will be encouraged through the promotion of Ancaster Heritage Village as a place for professionally run retail businesses. Objectives To foster an economic climate which supports the economic health of existing businesses and encourages the location of new businesses that fit within the overall vision To maintain and enhance the historic village as a central meeting place and shopping area for Ancaster Heritage Village, including those who live nearby To foster opportunities for tourism through a wide variety of mechanisms which enhance the community for residents as well as visitors Urban Marketing Collaborative 65 Commercial Market Analysis Ancaster Heritage Village BIA Principle – Healthy Community Decisions made regarding the future of Ancaster Heritage Village will reflect the need to establish a healthy community. This helps to encourage a broad based planning approach, which will maintain, and where feasible, enhance the health of Ancaster Heritage Village. Determinants of a healthy community include several things. In this case, a sense of belonging to Ancaster Heritage Village is one determinant. Also, features that foster social interaction and a caring community are also requisite. Lastly, business and recreational opportunities and linkages also serve as determinants of a healthy community. Objectives To provide within the context of Ancaster Heritage Village for a range of recreational, educational, and cultural facilities and activities that meet the needs of all residents To build and maintain the physical services required to ensure the health and safety and well-being of Ancaster Heritage Village To ensure that all changes to Ancaster Heritage Village promote safety through the use of appropriate design strategies To encourage pedestrian, bicycle, and wheelchair accessibility throughout Principle - Financial Feasibility Any change in Ancaster Heritage Village should be financially feasible both in association with capital and operating costs. Objectives To keep the capital and operating costs of public sector development in Ancaster Heritage Village at a level that can be borne financially by residents and businesses To ensure that the capital costs of new development are covered Principle – Slower Pace To ensure that the traffic that moves through Ancaster Heritage Village is there for the express purpose of supporting the village to create a safe, pedestrian-friendly, shopping street. Objectives To ensure that Wilson Street is not used solely as a bypass. To ensure that businesses can create a pedestrian-friendly environment that is easily accessible, easy to get around, and promotes cross-shopping. Also, that the stores be merchandised in the front so as to pull potential customers into their store. Urban Marketing Collaborative 66 Commercial Market Analysis Ancaster Heritage Village BIA 5.2 Target Markets The following target markets are presented: Local Workers Closest and high impact market Very small group but marketable Inexpensive to reach and highly targeted Biggest return on investment Ancaster Heritage Village Residents in Primary Trade Area High impact market Over 20,000 residents High affinity to shop in Ancaster Heritage Village Regional Visitors For destination businesses, recreation, arts, and culture Opportunities for greater synergy Property Owners Must tell the story to make the deals Must buy into the vision and be motivated to offer deals – reserve space for retailers and not just accept the highest rent available Opportunity to create programs that will improve buildings, facades, and developing infill buildings Urban Marketing Collaborative 67 Commercial Market Analysis Ancaster Heritage Village BIA 5.3 Organizing for Success Strategy Goal Urban Marketing Collaborative strongly believes that a core principle of commercial success is organizational strategy. The pillars of success are sound economic fundamentals, innovative design, and implementation tools and programs. Success is realized through bringing these latter together under strong leadership through organizational development. The Ancaster Heritage Village BIA was established in 2008 and was preceded by a merchants’ association. The BIA has quickly established itself and its priorities through active participation by property owners and businesses, have set tasks for themselves and delivered on them. The fruits of their labours include many things. For starters, the establishment of strong working committees and a successful farmers’ market. Additionally, there are now new holiday decorations and a tree-planting program. As for the organization itself, there is a new executive director. These are but a few of the positive changes that the Ancaster Heritage Village BIA has ushered in. A BIA is not a panacea for every issue. It is, rather, a tool to help achieve desired outcomes. If the BIA wants to improve the aesthetics of the streets, transportation/traffic, landscapes, facades, and in-fill developments, then the BIA can work effectively with the City and property owners. Organizational Characteristics, Structure, and Resources The Ancaster Heritage Village BIA should develop into a strong organization representing the interests of businesses and a voice in the City of Hamilton. At present, the BIA is well established with working committees, active participation, an executive director, and moving towards refined strategic planning. The committees include those related to aesthetics, parking, marketing, City relations as a whole, and an executive committee. The overall function is to have strategic plans and tactics developed at the committee level. These would then be quickly presented to the overall board. It is important for the BIA to keep track of successes (have an evaluation) to monitor progress. At present, there is a tremendous amount of learning with regard to City departments and functions as well as developing committee strategic plans that it can seem overwhelming. The committees must have competent members, there must be delegation and freedom to develop plans at the committee level, and encouragement for new ideas. Urban Marketing Collaborative 68 Commercial Market Analysis Ancaster Heritage Village BIA The Ancaster Heritage Village BIA’s primary responsibility is to improve the local business climate through a combination of management, maintenance, and marketing. The BIA must play the roles of: - Advocate – Being an advocate for Ancaster Heritage Village businesses is important but it is only part of its roles and responsibilities. The BIA must ensure that Ancaster Heritage Village’s interests are represented and advanced in policy and resource allocation decisions at the City level (potentially at the provincial level). The organizational plan provides recommendations for improving communication. The objective is to better inform, engage, and mobilize all local community interests. The City and Parking Committees are primarily involved in this function. - Marketer – Ancaster Heritage Village BIA needs to solidify its role as the village’s umbrella marketer, with the aim of developing a broader base of target markets to draw to the area. It may also oversee communication to attract investor markets, thereby creating new businesses, jobs, and investment. - Facilitator – Ancaster Heritage Village BIA can play a strong role as facilitator or “deal maker” to encourage new types of marketable real estate investment and design recommendations. In addition, it may also take a more aggressive position on the real estate delivery system (e.g., ease of using incentive programs; beautification projects, permits, retail recruitment, etc.). This may be primarily with the Aesthetics Committee. Communication Communications programs are intended to better inform and educate all Ancaster Heritage Village stakeholders (including BIA members and non-members) on issues, challenges, and opportunities affecting the area. To fulfill the Ancaster Heritage Village BIA’s role as the advocate, promoter, and facilitator of new investments, the following program initiatives are recommended: Bi-weekly fax or email blasts: frequent communication will provide timely updates on Ancaster Heritage Village issues and activities. The fax/email is targeted to the primary Ancaster Heritage Village BIA retailers, property owners, and other stakeholders (e.g., houses of worship, Fieldcote, and cultural and recreational institutions) Website: plans are underway for an Ancaster Heritage Village website to build both internal communications and external marketing. Urban Marketing Collaborative 69 Commercial Market Analysis Ancaster Heritage Village BIA An example of an effective website produced by Downtown Boulder: Bi-annual newsletter: a quarterly or bi-annual newsletter is recommended to achieve several communication goals. This includes providing in-depth information on pertinent activities and improvements, and providing a visually stimulating medium with which to market Ancaster Heritage Village. Newsletters should have a broader distribution beyond BIA members. Ancaster Heritage Village maps and directories: maps and directories can fulfill several objectives. This includes providing an inventory of Ancaster Heritage Village businesses, promoting the diversity of Ancaster Heritage Village, providing a useful resource to employees and visitors, and offering a direct visible benefit to ratepayers. Advertising could also be sought for the directory to defray costs. It is important that the directory be directly applicable to select target markets such as workers, tourists, and locals. Eating and drinking establishments, being a primary need of map users, should be listed directly across from the map, making them easy to locate. These can be online first with hardcopy directories at a later date. A simple directory on a bookmark-type postcard is an effective way to communicate the businesses along Ancaster Heritage Village BIA. Urban Marketing Collaborative 70 Commercial Market Analysis Ancaster Heritage Village BIA Annual General Meetings: the Ancaster Heritage Village BIA should provide an annual update in a town hall format to showcase Ancaster Heritage Village improvements, challenges, and opportunities. Quarterly issue forums: quarterly forums can feature speakers on a variety of issues ranging from updates on projects, expansion news, festivals and events, construction projects, and retailing workshops (e.g., merchandising displays, trends, and holiday season retail) Member and ratepayer surveys: annual or regularly scheduled member surveys should be undertaken to track overall satisfaction with both the BIA’s programs and general Ancaster Heritage Village perceptions in order to establish benchmarks and monitor progress. Funding: an initial budget of approximately $90,000, composed of a ratepayer’s special assessment for operational programs, has been complemented by other grants from the City of Hamilton. As new buildings are built and existing buildings are redeveloped, their assessment value will increase. The BIA should allow for a natural increase in the BIA budget by keeping existing buildings paying the same amount each year. Subsequently, an increase in the budget will come from increased assessed values. - Additional funds may be raised for project-specific activities such as festivals and events or specific capital projects. - The budget should be split one-third on administrative expenses, one-third on marketing and promotion, and one-third on beautification. Comparable Markets An examination of business district management organizations in other communities provides a context for evaluating Ancaster Heritage Village commercial’s organizational needs. Picton is a historic Town in Prince Edward County, Ontario. The Town has approximately 5,000 full-time residents but grows in the summer with cottagers and seasonal residents. A Business Improvement Area (BIA) had been established in the Downtown area for a number of years, but it was volunteer run. The organization only worked on one major event each year: there was little coordination. The BIA budget was $30,000. Urban Marketing Collaborative 71 Commercial Market Analysis Ancaster Heritage Village BIA Today, the organization has completely transformed itself. The municipality has supported the BIA and helped them move forward with hiring a part-time staff person and increasing the budget. The budget for the BIA is $60,000 and will move to $80,000 this year and $120,000 in three years. The BIA has been able to secure an additional $160,000 from the Ontario Rural Economic Development Program that will be augmented by Prince Edward County ($357,000). The money is to be used from 2008 to 2010 on signage, lighting, street furniture, staff wages, and a strategic marketing plan. The budget is split between: Administration: Marketing: Beautification: 60% 30% 10% - not including the additional grant monies Perth is another historic community that is similar in size to Ancaster Heritage Village (6,000 people). There are approximately 70 retailers in the Downtown BIA. The BIA has a paid part-time executive director and a volunteer board of directors. The BIA raises $76,000 through a business levy and the Town contributes an additional $19,000. There is a letter of understanding between the Town and the BIA that is renewed every three years regarding beautification services. The BIA provides these services (e.g., floral fixtures, benches, trees, etc.) but capital costs for streetscaping are paid for by the Town. The BIA spends their budget on: Administration salaries and supplies: Promotion: Beautification: 53% 22% 25% In addition, the festival costs $60,000, which the BIA raises and spends as a net flowthrough account. Plans for Perth BIA are to raise the levy by about 3% annually. The average levy for each business is approximately $1,000. The Town has a joint economic development officer and community development (heritage) person. In Rutland, Vermont, a slightly larger town of 17,000 has had a Downtown Business Improvement District (BID) for the past 15 years. The BID has a budget of approximately $300,000 that includes $237,000 that is raised from the business levy. There are approximately 300 businesses (retailers and professional services) in the Downtown. Staff includes a full-time executive director, two part-time staff (full-year) for office administration and marketing, and a part-time seasonal staff for cleaning. Urban Marketing Collaborative 72 Commercial Market Analysis Ancaster Heritage Village BIA The BID funds are distributed as follows: Administration salaries: 37% Office overhead: 10% Special events: 16% Marketing: 22% Streetscape: 10% Business development: 5% The goal going forward is to spend more money on business development and less on special events. Other larger and smaller towns with BIAs include: Community Population BIA Budget Downtown Cobourg 19,000 $120,000 Downtown Dundas 30,000 $115,000 plus sponsorship and municipal support Downtown Haliburton 2,500 $31,500 Downtown Orillia 30,000 $225,000 plus $75,000 in sponsorship Downtown Bracebridge 15,000 $100,000 Downtown Bowmanville 25,000 $138,000 plus municipal support Urban Marketing Collaborative 73 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Organization Action Step Time Frame Responsibility Develop a full set of communication tools, assign a budget, and resource time against each Immediate Ancaster Heritage Village BIA Finalize a job responsibility program for the executive director Immediate Ancaster Heritage Village BIA BIA to canvas for support and increase communication and work with non-members Immediate Ancaster Heritage Village BIA, City Evaluate BIA committees ensuring that they are working towards strategic planning and developing tactics to carry out the goals set Within 18 months Ancaster Heritage Village BIA, City Develop methods for increasing private/public sector investment including corporations, foundations, public sectors, houses of worship, and other private sector bodies Short-tomediumterm Ancaster Heritage Village BIA Coordinate with local groups, clubs, and associations (e.g., Golf Club, Garden Club, etc.) to discuss opportunities to fund specifically identified local-based projects within the village Short-term Ancaster Heritage Village BIA and other groups and organizations Urban Marketing Collaborative 74 Commercial Market Analysis Ancaster Heritage Village BIA 5.4 Economic Development Strategy Goal The overall goal is to encourage and facilitate private and public sector investment and the recruitment of commercial, art, cultural, and recreational businesses and organizations in Ancaster Heritage Village as well as in-fill developments (mixed-use). The emphasis is on creating a unique experience, founded on a traditional, heritagecentered, small-town atmosphere. A place that is a complete livable and walkable community with strong cultural and entertainment elements, all in proximity to urban markets (Hamilton and Greater Toronto Area). While the specific emphasis in this report is on retail and commercial businesses, it is important to approach commercial development in Ancaster Heritage Village from a business-plan model. Specific goals should be predetermined and refined on a continuous basis. This applies to occupancy rates, growth, types of commercial businesses, marketing plans, special event programs, and real estate development projects. It is understood that the overall area should develop into a complete livable and walkable community and a real functioning town centre. Of importance is that the small-town uniqueness and atmosphere be preserved. But this requires planning and resource commitments. Recommendations – Economic Development To foster investment and re-investment within Ancaster Heritage Village, there needs to be encouragement and promotion of an atmosphere that supports positive action. This can be made possible through cooperative efforts between the public and private sectors, along with the community at large. The refocus should be on projects that reinforce the premise of a meeting place or focal destination. The village should have the primary focus of serving the day-to-day retail and service needs of the community, while simultaneously broadening the opportunities of providing complementary services and facilities that attract visitors. Urban Marketing Collaborative 75 Commercial Market Analysis Ancaster Heritage Village BIA Like any marketed product, Ancaster Heritage Village contains a number of unique and important elements that are central to achieving the vision set out. This includes strong heritage, destination businesses, professionally run businesses, and sophisticated yet also more home-town/rustic in nature. Complemented by this is the customer’s desire to stay fit and to enjoy entertaining, which is afforded by Ancaster Heritage Village retail businesses. While tastes are more sophisticated, they are not stuffy. Rather, it is a contemporary and casual atmosphere related to entertainment that is being sought after and should be encouraged. Consumers value customer service, knowledgeable staff, and a personable, friendly atmosphere. Many retailers and businesses already fit into this cultural and entertainment description. There are several cultural organizations including theatre, music, and performance. There are several recreational organizations ranging from the golf and country club, trail associations, the tennis club, the lawn bowling club, among others. Cultural retail can include restaurants and cafés, art galleries, decorations stores, and leisure oriented retail. There are businesses geared to selling food, goods, services, and gifts that relate to entertainment as well. This includes goods related to serving food, hostess gifts, catering services, and unique foods. But the definition is broader than the literal definition of arts, culture, recreation, and entertainment. Many businesses are run by or employ people that have unique and interesting personalities. This provides a quirky and unique entertainment function. A business can be entertaining whether it is home improvement, financial service, food/grocery, restaurant, or gift related. Ancaster Heritage Village commercial businesses will not be bland and banal, but unique, interesting, and entertaining. People will want to gather at the local men’s clothing store to socialize. They enjoy meeting up at the Purple Pony to check up with friends. They can grab a glass a wine at the Coach and Lantern pub. Overall, the economic development policy for Ancaster Heritage Village should be centered on the idea of fostering the art, cultural, and recreational attributes in an entertaining environment. Retail Commercial Strategy The strategy for Ancaster Heritage Village commercial businesses will be to selectively increase the commercial square footage and to analyze redevelopment opportunities on a case-by-case basis. The focus of the commercial strategy will be to preserve and grow the existing cluster of strong commercial businesses (that are primarily appointment and destination based). This will be leveraged to create improved, complementary retail commercial uses. In this manner, commercial sales will not be cannibalized by new developments, and retail will grow with increased demand. As stated, it is understood that Ancaster Heritage Village wishes to retain its small heritage village atmosphere and close-knit community. Therefore, any development must be reviewed in this context. Urban Marketing Collaborative 76 Commercial Market Analysis Ancaster Heritage Village BIA Wilson Street will be the principle commercial corridor. In terms of importance, Ancaster Heritage Village commercial should concentrate on the following areas: 1. Focus on a core area of Wilson Street from Academy to Halson Street 2. Create infill opportunities and redevelopment of residential to commercial (at grade) 3. Remove barriers to accessing commercial properties including fences 4. Assess opportunities for shared driveways and access to shared parking lots 5. Create clusters of retail such as convenience goods and services near Halson, restaurants between Academy and Church, and leisure retailers south of Church and north of Academy Urban Marketing Collaborative 77 Commercial Market Analysis Ancaster Heritage Village BIA Urban Marketing Collaborative 78 Commercial Market Analysis Ancaster Heritage Village BIA The retention and recruitment plan should work towards retaining certain key business categories and expanding others. Examples of commercial stores3 that support this strategy include the following (important to note that many businesses currently exist in Ancaster Heritage Village and strong efforts should be made to retain them): Eating and Drinking Quality contemporary restaurants and evening entertainment Contemporary cafés: quick lunches/café – salad, sandwich, coffee using fresh, unique ingredients, eat-in or take away Book store/café Home Furnishings Kitchen, dining room, and gift Home furnishings or furniture (destination type retail) - Bedding and linen - Bathroom fixtures - Floor covering, rugs - Fabric – sewing and notions Framing, art galleries Small florist or garden store (retail) excluding nursery, wholesalers, or lumber supply stores Home décor, interior decorating Convenience Goods and Services Quality convenience stores Drug stores (emphasis on health and well-being) including smaller specialist health and wellness focused stores Specialty food: butcher, other meat and seafood, cheese, bakery/café, prepared and semi-prepared foods Temporary kiosks for ice cream and drinks Quality wine shop Natural/health food/green grocer Specialty travel adventure Banking Dry cleaning Beauty, spa, barber services, tanning, nails, brows, medical services related to aesthetics Medical, dental, and other specialists 3 For businesses listed that already exist in Ancaster Heritage Village, the focus should be on retention services Urban Marketing Collaborative 79 Commercial Market Analysis Ancaster Heritage Village BIA Specialty Apparel and Accessories Contemporary, unique clothing that is not available in malls or power centres Bridal/formal wear Cosmetics Contemporary jewellery Leisure Arts and culture related stores Art gallery Antiques – need to adjust to contemporary times but quality higher end items Sporting goods (higher-end camping, cycling, climbing –stores that have a crossgenerational appeal Sports clothing Hobby, arts and crafts (e.g., very specialized art supplies) Pet store, veterinarian Photography General merchandise store - Emporium Other Cooking school Boutique hotel Fitness facility Recreational centre – dance, singing, ballet, yoga, Pilates Professional offices on upper floors and side streets Urban Marketing Collaborative Claramont Inn and Spa in Picton, ON 80 Commercial Market Analysis Ancaster Heritage Village BIA Recruitment Programs The new business organization should not directly become actively involved in recruiting commercial uses. They can work collaboratively with the property owners (acting as facilitators) concerning the retail commercial vision for Ancaster Heritage Village. This applies particularly to retail retention and recruitment. The Executive Director and board chair of the BIA should be available to answer questions concerning vision and future development. They should also act as a welcoming committee for new retail and commercial businesses in Ancaster Heritage Village. The BIA should establish goals and objectives related to the commercial health of Ancaster Heritage Village. They must be familiar with the current business profile, as well as vacancies, rental rates, new projects, property owners, and the like. This will facilitate their working with the committees to devise a strategy of selectively increasing the retail and cultural components in the village. Goals related to occupancy rates, the percentage of square footage devoted to retail merchandise, and objectives of searching out these new businesses need to be developed. Ancaster Heritage Village BIA will need to narrow down a list of a few prospects, approaching them with the correct facts, including a store location. The objectives are not solely retail commercial based but can include broader arts, cultural, community, recreation, and entertainment activities as well. This may include assistance with the Firehall Theatre, Fieldcote, or other programs. In addition, the BIA should develop and distribute a well-organized, current market information package related to the commercial potential for Ancaster Heritage Village. It should be targeted at potential business owners who are interested in establishing a business. The executive director, along with the board members, can work proactively with individuals to determine gaps in the marketplace and how to successfully fill them. Property owners in Ancaster Heritage Village should be prepared to offer incentives to help attract quality retailers. This means not taking the first tenants that are the highest bidders. Possible program incentives include rent breaks – offering very low or no rent in the beginning months and gradually increasing rent up to market levels. In addition, programs to introduce more residential in the village core (where it is appropriate) should be encouraged. Urban Marketing Collaborative 81 Commercial Market Analysis Ancaster Heritage Village BIA Retention Programs Retail retention is important because the strength of the existing retailers and businesses will encourage prospective businesses to locate in Ancaster Heritage Village. First, the information from the background report and consumer surveys for this project should be made available to the businesses and property owners. Existing retailers can begin to refocus their own retailing/marketing efforts to take advantage of the local traffic’s socio-economic and shopping preferences. Merchandising, overall store presentation and window displays, store layout, price-point restructuring, store renovations and expansion, or even relocation should be re-evaluated. For example, specialized stores with a limited target market, such as a high-end jewellery store, would not do as well. But products geared to quality health, fitness, and recreation will, as this type of store will have cross-generational appeal. As the retail climate in Ancaster Heritage Village becomes more competitive, marginal retailers will face more competition. These retailers must become as strong as the newer retailers. One of Ancaster Heritage Village’s strengths was excellent service/helpful staff. If retailers believe they offer great service, they should be willing to take the necessary action to sustain and improve it rather than rest on their laurels. It is often better to improve an area of strength rather than to tackle an area of significant weakness as a starting point. While many retailers believe that they already offer great assistance to their customers, it will be important to offer additional benefits. This can include personal shopping help, style assistance, free delivery, a men-only shopping night, advance notice of new products, free products/samples with purchase, open extended hours, and gift-wrapping, among others. There are numerous resources from motivational speakers, books, videos/DVDs and workshops that address areas of retail operations. Retailers should offer incentives to their staff to understand the products and services they are selling. Ancaster Heritage Village and the new business organization will be able to supply retention services through the following means: Making educational tools, including videos, guidelines and books, available to businesses and coordinating special learning events for members. Offering seminars on topics such as: merchandising, effective use of window displays, how to offer good customer service, accounting, public policy, marketing and advertising, buying for your business, developing an Internet site (multi-channel retailing), security and safety techniques, importance of store cleanliness… could be part of the retail advisory committee. The BIA can include a customer service personal shopping program that rewards retailers that offer exceptional service. Making demographic information available so that businesses can better target their promotions to customers. Urban Marketing Collaborative 82 Commercial Market Analysis Ancaster Heritage Village BIA Helping businesses identify and develop business opportunities for growth and expansion. Programs include: how to attract more customers through marketing; building a repeat customer base; how to encourage customers to spend more; adding new product lines to capture a wider market range; expanding or relocating within Ancaster Heritage Village; and, opening a complementary business in Ancaster Heritage Village - creating your own competition. New businesses should be encouraged to take root in Ancaster Heritage Village – these businesses may need assistance with business planning, loans, bookkeeping, rent abatement deals, merchandising, etc. Supporting cross-promotional efforts: restaurants should give discounts to local businesses that help promote them; businesses such as accommodation related, art and cultural related, and recreational venues. Also, local resident loyalty programs and joint marketing similar businesses should also be pursued. Businesses must be encouraged to use the words ‘Ancaster Heritage Village’ in their promotional materials, business cards, yellow page directories, etc. to help re-enforce the brand. Planning for business transition. If a business owner plans to sell, close, or retire, it is important to find this out as soon as possible. Services offered by the BIA could include the following: - Serving as a liaison between business owners and potential buyers; - Identifying potential buyers and providing information; and - Helping to prepare marketing materials. Ancaster Heritage Village businesses need to support one another’s business by being seen shopping and conducting business on a regular basis in Ancaster Heritage Village. Business owners and staff should easily recommend other businesses in the BIA to customers. Becoming actively involved with each other provides opportunities for visual monitoring, keeping communication channels open, and building relationships that are essential. See Appendix for examples from retention programs. Urban Marketing Collaborative 83 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Economic Development Strategies Action Step Time Frame Responsibility BIA to set goals and objectives for retail recruitment as well as other community activities (community centre, recreational facilities, arts, culture, etc.). Goals should be to increase retail merchandise to 15% in the short term and with the overall goal of 20% in the longer term. Convenience retail should increase to 6% in the short term and 10% in the long term Immediate Ancaster Heritage Village BIA Continue to enhance farmers’ market Ancaster Heritage Village BIA Begin commercial retention programs Short-term Ancaster Heritage Village BIA Develop a one page of strengths of Ancaster Heritage Village BIA that a potential retailer would find helpful (facts on why you should locate here) Short-term Ancaster Heritage Village BIA Develop programs related to improved customer service Short-term Ancaster Heritage Village BIA Develop program of potential retail and community uses along the entire BIA including conversion of residential to retail, mixed-use building opportunities, other infill potential, and redevelopment of existing buildings. Short-term to medium-term Ancaster Heritage Village BIA Develop potential incentives, ideas, and programs to help facilitate new businesses to open in the BIA Mediumterm Ancaster Heritage Village BIA, City Act as a liaison for retail investment opportunities Mediumterm Ancaster Heritage Village BIA Consideration may also be given to the idea of encouraging certain retail types to locate in the village. This has been used in some municipalities such as Collingwood. Rather than restrict ground level space to only retail (to the exclusion of professional services), the municipality requires that some retail types (e.g., government agencies such as libraries small professional offices, small specialty retail, stores serving the day-to-day needs of residents, liquor stores, full-service banking and financial institutions, etc.) must consider a location in the business district before being allowed to consider other locations such as power centres, malls, or stand alone retail locations. They must provide a rationale for not locating in the business district. Urban Marketing Collaborative 84 Commercial Market Analysis Ancaster Heritage Village BIA 5.5 Major Marketing and Branding Strategies Strategy Goal The goal is to build a comprehensive marketing and branding platform to leverage commercial activity in Ancaster Heritage Village. To encourage people to visit, shop, and dine in Ancaster Heritage Village on a frequent basis, the mission should be to focus on those who currently visit to increase their patronage. It is easier to work with current visitors than to convince non-visitors to come to the village. The goal is to increase the number of times they visit and the duration of the visit. These customers are already loyal to Ancaster Heritage Village and aware of what there is to offer. Programs to increase expenditure incrementally will have a higher payback than programs geared to non-visitors. With non-visitors, there is higher risk that they will never become Ancaster Heritage Village shoppers. The starting point is the strong brand recognition of Ancaster and the heritage aspects of the village. Some Ancaster Heritage Village businesses have some well-established marketing programs in place and the efforts to date have been well executed. The BIA marketing programs should not interfere with individual retailer marketing programs but serve to enhance an overall umbrella image of what Ancaster Heritage Village is about. Also, the BIA can bring businesses together for joint or cross-promotional marketing programs. Marketing can be the catalyst that helps build the image of Ancaster Heritage Village. The image is that of a meeting place, a livable and walkable community, a focal point, and as a central area of activity for arts, culture, recreation, and entertainment. It is a place to rejoice in the heritage atmosphere. It can play an integral part in creating a “buzz” for the village and helps put a face on the efforts of the businesses, property owners and art, culture, and recreational organizations and associations. Marketing is also a key element in retail retention. The BIA needs to focus on finding the appropriate mechanisms to embrace the concept of a powerful marketing program with the requisite funding to support the execution of these efforts. The marketing recommendations made herein assume this commitment of funding will be in place in the not-too-distant future. This will enable the marketing recommendations to be rolled out and executed towards the overall success of Ancaster Heritage Village commercial businesses. Urban Marketing Collaborative 85 Commercial Market Analysis Ancaster Heritage Village BIA Five Major Marketing Strategies There are five major areas of work for Ancaster Heritage Village commercial businesses from a marketing perspective. Each of these strategies is presented with example tactics to help bring the strategy to life. Implementation of a well-conceived marketing program requires execution of all five strategies. No single strategy is more important than another and we strongly recommend finding the resources to execute all five strategies. Strategy One: Build upon Ancaster Heritage Village Commercial Brand A Town/City or BIA brand is different from a consumer product or other brand. The Town/City or a BIA has limited control over the use of the name Ancaster Heritage Village or how it is affected by others. However, there are many things that can be done to build a single brand for Ancaster Heritage Village. A key element of this process is deciding what the brand stands for and can be answered by several questions: What are the key messages about Ancaster Heritage Village BIA that should be included in all communications by related and involved organizations – especially related to the word heritage? What is our voice for community marketing? What colours, personality characteristics, and overall look convey the brand? What is our positioning strategy vis-à-vis our competition? What are our current and desired perspectives on key issues? Who are the key targets for these communications? What are the key words that we associate with Ancaster Heritage Village commercial businesses? What is the full articulation of the word “heritage” for the BIA and how is that manifested? How can we all speak in unison about the positive nature of Ancaster Heritage Village commercial businesses as a place to meet, recreate, live, enjoy, do business and shop? Urban Marketing Collaborative 86 Commercial Market Analysis Ancaster Heritage Village BIA The following brand positioning is proposed for Ancaster Heritage Village commercial4 Ancaster Heritage Village is the centre point of life in the Ancaster region. Our retail, restaurant, recreation, cultural and entertainment offerings provide a unique set of positive experiences unequalled in the region and the village is the hub of activity. Ancaster Heritage Village BIA will bring together a powerful mix of a warm small-town friendly environment in a single location. The village will reflect the best of our region rooted in the strength of our history. Once the brand is established for Ancaster Heritage Village BIA, all creative elements produced for the village should carry a single look and feel and a single positioning statement. Advertising and Public Relations (PR) are the two major marketing tools used to create the brand. Ancaster Heritage Village BIA should consider a multi-pronged approach using a combination of media options – newspapers, magazines, and direct mail. The focus should be on the most likely customers who will shop/eat/experience Ancaster Heritage Village. These advertisements and PR efforts are used to build the overall brand of the village in the eyes of the most profitable customers. The frequency of the advertisements should be dictated by each season: it is not advisable to run advertisements in the depth of winter. Advertisements should focus on spring, summer, and holiday shopping periods with PR efforts filling the gaps. Marketing should focus on the top loyal customers that have a higher direct impact on sales revenue and gross margins. 4 Note: this is one version of a positioning strategy for Ancaster Heritage Village commercial and there could be many others. The BIA should work together to formulate a positioning strategy that is agreeable to a majority of the group. Urban Marketing Collaborative 87 Commercial Market Analysis Ancaster Heritage Village BIA If there are events and programs produced by the BIA or website sign up, there should be efforts to collect visitation data to build a database of customers that can be part of a direct mail campaign. Programs such as Constant Contact (I Contact) are beneficial for tracking website visits and email distributions. A loyalty card may also be considered for rewarding the most loyal customers with gift certificates and additional programs. The combination of a defined brand position, consistent and powerful tagline, advertising and PR campaign and unified voice for the village will help to create momentum for the area. Additionally, it will support business recruitment efforts as well as help to keep the existing businesses healthy. Strategy Two: Traffic and Sales Building Promotions Unfortunately, it is not enough to simply run advertisements to generate interest and excitement for the village businesses. The advertisements “open the door” to the consumer, helping them to understand the identity and purpose of Ancaster Heritage Village. However, there is a secondary marketing strategy to supplement this effort. There are several events in Ancaster and the BIA that should draw people to experience the village. While there may be an opportunity for the BIA to run and manage a limited number of events, the stronger benefit is when other organizations run the events in the village. The BIA can assist by providing the venue. BIA special events and promotions are typically executed during key merchandising seasons. For example, there could be an early summer promotion and a holiday season promotion – during the summer there are too many residents who are away at cottages and holidays. The intent of each sales promotion is to get people motivated to visit the village and make purchases at the same time. They can be categorical (e.g., retail, food, etc.) or they can be general. Some tactical examples of this type of promotion are as follows: Major seasonal giveaways/contests that requires the customer to enter to win. The entry form can be printed as part of an advertisement in the newspaper and made available in-store. These types of promotions are very effective in generating traffic in other markets. Major categorical events such as “Heritage Food and Wine Festivals”, a “Health and Wellness Fair”, and a “Wedding Show” support a specific area of business. In either case, special offers are made to the consumer to drive them into the village. Urban Marketing Collaborative 88 Commercial Market Analysis Ancaster Heritage Village BIA Cause related programs that help to generate funding for a specific organization (i.e., arts, medical clinics, and charities) while helping to build sales. For example, one town produces a shopping discount card for a specific two-week period. Shoppers can “buy” the card for a donation to a charitable organization where the card provides them with numerous discounts in the local stores, restaurants, etc. for that timeframe. Execution of at least two well-coordinated sales promotions during the year will be critical to the success of the village’s retailers and restaurants as a supplement to the overall branding initiative. In addition, a weekly spring, summer, and/or fall event such as a late afternoon music concert series at the Town Hall could be coordinated (e.g., Thursday afternoon Jazz). For special events there needs to be consideration for the local commercial businesses. Ancaster Heritage Village businesses must be given the right of first refusal related to setting up booths for events. The BIA should look at ways to encourage business participation by selling the benefits of database marketing to the increased traffic. Once the Ancaster Heritage Village businesses have signed on and others have determined that they are not going to particpatie, then other vendors can be recruited for the event. Strategy Three: Niche Marketing Ancaster Heritage Village commercial businesses need to have different marketing strategies for local residents and out-of-town visitors. Visitors can be marketed through partnerships with regional tourism organizations. In addition, businesses need to develop effective concierge programs with local arts, cultural, recreational, accommodation, and other tourism related organizations, businesses and associations. The most effective marketing is in the form of direct referrals. The accommodation staff/owners often make restaurant reservations on behalf of visitors or offer suggestions. Ancaster Heritage Village businesses should be courting these businesses to ensure that their business is recommended by the front-line workers. Urban Marketing Collaborative 89 Commercial Market Analysis Ancaster Heritage Village BIA Local residents have specific shopping and dining needs. The major premise of any local resident marketing strategy is communication. They have to know what is available to them to increase usage. This can be online communication, street banners, newspaper advertisements, and so forth. The sign into Niagara on the Lake highlights upcoming events and dates. The board can be updated to show the next four events on a continual basis (each event slides in and out of the sign board) Urban Marketing Collaborative 90 Commercial Market Analysis Ancaster Heritage Village BIA Strategy Four: Barrier Free Access and Usage Marketing is not just about advertising and special promotions. It is also critical to break down the barriers that may exist for consumers to utilize the village more frequently. They need information to make the decision as to whether they will visit or not. For Ancaster Heritage Village, there are several major pieces of work in this area. First, the village must have visibility. There are signs along Highway 403 that help direct visitors. Gateways need to be considered at the ends. The design solution for the external gateways (Montgomery Drive and Halson Street) may be re-interpreted for use within the BIA (e.g., as stop light poles). Other directional signage programs for pedestrians and vehicles need to be considered throughout from different activity centres (e.g., from trails systems, bike paths, parking lots, cultural venues, etc.). The city`s budgeting for the Ancaster Heritage Village BIA gateways is underway. Additionally, customers need to know where to go to get information. A well designed, informative, and easy to use website is the best option for this as well as an information kiosk in the Town Hall and/or the library. It can address many of the areas of information requested by consumers including: What stores and restaurants are in the village? What are the shopping hours? How do I get there? Where do I park? What is happening this weekend - special events? Strategy Five: Business-to-Business Marketing to Lease Space Ancaster Heritage Village has a need for a coordinated leasing marketing program to impact those who lease space. Elements to this program should include the following: Create coordinated sales collateral materials that tells the Ancaster Heritage Village commercial story completely and concisely using research findings to make the case for Downtown as a great place for your business Develop online marketing strategy for quick information (website) Use PR strategies to tell stories in targeted publications, including success stories of Ancaster Heritage Village commercial businesses Urban Marketing Collaborative 91 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Marketing and Branding Strategies Action Step Time Frame Responsibility Coordinate joint marketing programs among businesses Immediate Ancaster Heritage Village BIA Work with all businesses to ensure that they include Ancaster Heritage Village in their address cards, yellow pages, website contact information, etc. Immediate Ancaster Heritage Village BIA Develop a website and then ensure that it is linked to as many other organizations (e.g., City, arts and culture organizations, recreation, etc.) – use programs such as Constant Contact to develop direct mail campaigns Immediate Ancaster Heritage Village BIA Enhance public relations with local media (Ancaster News, Dundas Star, The Spectator) and search out where possible national coverage in larger circulation media such as The Globe and Mail or blog/Internet sites Immediate Ancaster Heritage Village BIA, media A tourist information kiosk should be enhanced at the library (not necessarily staffed) Immediate Ancaster Heritage Village BIA, library, Tourism Hamilton Establish consistent shopping hours to promote the hours of operation. Organize a special village service and retail workshop to discuss hours of operation and customer service excellence Immediate and ongoing Ancaster Heritage Village BIA Develop an Ancaster Heritage Village brand Short-term Ancaster Heritage Village BIA Explore the feasibility of cross-marketing businesses with other activities – accommodation, art and cultural programs, Farmers’ Market, and professional services Short-term and ongoing Ancaster Heritage Village BIA, other organizations Develop and establish distinctive gateways on the approaches to Ancaster Heritage Village and signage within the Village that reinforces a consistent theme and provides useful/effective information. Ensure that these are both pedestrian and vehicular scaled Short-term Ancaster Heritage Village BIA, City Explore opportunities for increased events and programs – designed to raise the profile of the Village as a community destination Short-term and ongoing Ancaster Heritage Village BIA Explore partnerships with regional tourism sectors – such as agri-business and culinary activities, eco-tourism and recreational trails Short-term and ongoing Ancaster Heritage Village BIA, City, and other organizations Urban Marketing Collaborative 92 Commercial Market Analysis Ancaster Heritage Village BIA 5.6 Programs for Enjoyable Shopping Strategic Goal The goal is to create a dynamic local market place where commercial businesses are encouraged and supported. The development of the environment should be pedestrianfriendly. One of the major challenges to creating an enjoyable shopping experience is the traffic issues related to Wilson Street. The image of a pedestrian-friendly village is countered by a situation whereby the traffic along Wilson Street either moves too fast or too slow. Planning should encourage a steady flow of traffic through Wilson Street that supports and cultivates a shopping atmosphere. Currently, a high proportion of the traffic appears to be using the village core as a pass by area. This discourages shopping and an intimate village atmosphere. It is important to note that these traffic issues are primarily observational. The goal should be to divert as much as possible those motorists who want to pass through the village core onto other roads. This will contribute to preserving the village core for those who want to be there and experience the great atmosphere. Considerations may include diverting traffic with improved Highway 403 on-ramps at Main Street and traffic calming design elements within the village core. Also, not that the City-wide Truck Route Master Plan is being conducted with BIA input and a final report is due in 2010. Through strategically placed and appropriately scaled infill and redevelopment, a greater critical mass of retail, residential, personal services, professional services and arts, cultural, recreational, and entertainment services can be accommodated. The streetscape elements such as signage, sidewalk materials, width, planters, street trees, benches, and trash receptacles will add to the positive pedestrian character of the village. Store-front windows and private sector building signage will reflect the character of the area, as will store window displays, and upper building facades. The diagram below shows how changes and improvements in the physical environment can help improve the vibrancy and vitality of Ancaster Heritage Village. The influence of the planning and regulatory framework is demonstrated as well. Urban Marketing Collaborative 93 Commercial Market Analysis Ancaster Heritage Village BIA Source: Brook McIlroy Inc. Action items can include: 9. Prepare a tree inventory – this process has begun. It is important to remember that trees create a dramatically different atmosphere on the street by shading the sidewalk and lowering temperatures in the summer. They also create a more intimate atmosphere. A tree inventory will identify species, a comprehensive palette, and a long-term replacement schedule. 10. Investigate and adopt a palette of street furniture and streetscaping – this process has begun. This includes heritage light standards and benches clustered in a way that encourages social interaction (i.e., benches should face one another to foster dialogue when sitting. The local artist community can assist with a streetscape master plan. In addition, working with the senior community will help to ensure that accessible issues are also addressed. Ensure that they are appropriately scaled for pedestrian and vehicular usage. Urban Marketing Collaborative 94 Commercial Market Analysis Ancaster Heritage Village BIA Street furniture should encourage social gathering. It may also include chairs rather than benches located perpendicular to each other. Also, street pavement can also be used to help indicate intersections. 11. Review the City`s cycling master plan for specifics as they apply to Ancaster Heritage Village BIA – identification of safe and scenic routes, cyclist signage, and work with cyclists and the artist community on improvements. It is important to include wayfinding signage from recreation trails to the retail areas to reinforce the cohesive community connections. In the example, the bicycle rack is also used as a wayfinding to retail and other activity centres Urban Marketing Collaborative 95 Commercial Market Analysis Ancaster Heritage Village BIA 12. Encourage civic spaces – The City has been implementing the Ancaster Square Master Plan to improve the municipal centre and library as a community gathering space. Other community gathering spaces and recreational spaces should be encouraged – splash pad/skating rink concepts. Consider a community centre for the village and a permanent spot for the farmers’ market. Vacant lots should be temporarily used for public seating and artistic work. Public gathering spot on Main Street, Unionville . In Kingston the parking lot is used for a farmers’ market, parking, and skating at different times of the year/week. Urban Marketing Collaborative 96 Commercial Market Analysis Ancaster Heritage Village BIA 13. Develop signage and lighting around recreational areas. A unique program that builds off of the natural heritage and artistic cultural angle is to create signage related to art. In the following examples artist work is used for wayfinding and directional signage as well as learning. Directional signage can use historical images and paintings to help draw context for pedestrian traffic. In addition, new paintings can be used as directional wayfinding to places such as recreational trails, shopping, the farmers’ market using local artists on small plaques. Note that the plaques would be small replicas of the images. Urban Marketing Collaborative 97 Commercial Market Analysis Ancaster Heritage Village BIA 14. Respect the different historic character of the buildings and the various setbacks that give Ancaster Heritage Village its different shopping setting as opposed to more traditional main street downtowns. 15. Preserve sight lines, view corridors, and respect building heights 16. Façade improvements should consider the street-side and rear sides of buildings 17. Treat parking lots as the first point of contact with visitors by ensuring they are clean, clear, and well-lit. They can be improved with landscaping. Consider amalgamating some lots for a consistent experience behind buildings that are available for all users. Employees should be encouraged to park away from high demand spots (consideration for improved lighting and security should be taken into account). Paid parking may encourage higher turnover of customer parking spots. Visitors should be encouraged to park once and shop all day. An overall parking management program is required by the Parking Committee of the BIA that addresses not only parking supply issues but also management. A full evaluation of parking locations is desired in view of the need for both general parking and street parking in front of as many businesses as possible. Parking management may also include education, marketing, marked lines, discounts and promotions (when there is paid parking) to reward loyal shoppers, programs whereby staff feed the meter, reminders to shoppers to feed the meter, among others. Parking lots should give considerations for safety, include exceptional landscaping, and should consolidate lots as much as possible providing vehicular access from side streets but ensuring there is pedestrian access to shopping streets. Urban Marketing Collaborative 98 Commercial Market Analysis Ancaster Heritage Village BIA 18. Create an intimate pedestrian-friendly street. This includes pedestrian crossings, bump outs, speed bumps, trees, preferential crossings for pedestrians at intersections, and retailers and businesses who merchandise the front of their spaces, including patios. Main Street Unionville and Downtown Kleinburg both utilize a system of slightly raised parallel parking that also functions as an extended pedestrian sidewalk, in addition to places for planter and light standards Urban Marketing Collaborative 99 Commercial Market Analysis Ancaster Heritage Village BIA 11. Protect historic buildings. Consideration should be given to the pros and cons of establishing a Heritage Conservation District5. This will require further discussion between the BIA and the City. 12. Ensure quality infill – set regulations and urban design guidelines may be required. This would apply to height and massing, setbacks, materials, retail uses on the ground floor, avoidance of blank facades, signage, treatment of view termini at T intersections, parking and services access, and drive-throughs. 13. Other key success factors Local championing – key community leaders in the public and private sectors must commit to the implementation of the above recommendations with the adherence to a schedule that ensures continual input. The BIA needs to have open communication with property owners. Leading by Example – public and private realm improvements cannot be dissociated. It is important that the City not demand higher standards from private property owners than from its own real estate. In addition, that the quality of the public realm not be allowed to fall below that of the private realm. The Town must be prepared to invest in upgrades to the Town Hall and for streetscaping, etc. Regular updates and timelines set – achievements must be recorded and the ‘todo’ list updated on a regular basis, all in a collaborative fashion. Some communities find it difficult to spend this large amount of money in one year for landscaping and streetscaping projects. In Alliston, Ontario, the capital cost of a river park in Downtown was too much. However, the municipality agreed to set aside $20,000 to $30,000 a year until enough money was raised to begin the construction project. Incentives (time and funding) – the BIA needs to be able to promote City incentive programs effectively as well as new incentives if a heritage conservation district is developed. Seizing opportunities to piggyback other projects – external projects can provide unique opportunities to implement desired changes, even though their timelines can be different (e.g., redevelopment projects and transportation projects). Largescale private development and redevelopment can also provide opportunities to improve the surrounding public realm. For example, through improvements to sidewalks, streetscaping and civic spaces as well as removing excessive driveways along Wilson Street. Enforcement – all zoning and property standards by-law should be enforced as diligently as possible to reward compliance. The best policy framework can falter with insufficient enforcement. 5 Examples include Collingwood Downtown Heritage Conservation District (2002), Unionville Heritage Conservation District (1998), and Thornhill Heritage Conservation District (1984-1986) and Yonge Corridor. There are over 75 districts in Ontario. See the benefits described in http://www.culture.gov.on.ca/english/heritage/Toolkit/toolkit.htm Urban Marketing Collaborative 100 Commercial Market Analysis Ancaster Heritage Village BIA Recommendations – Programs for Enjoyable Shopping Strategies Action Steps Time Frame Responsibility Explore infill opportunities to create a consistent street front Immediate and ongoing Ancaster Heritage Village BIA and City Explore feasibility of diverting traffic (e.g., by providing additional westbound access ramps to Hwy 403, including from Main St. W.) and creating an intimate shopping environment through curb line, widening sidewalks and narrow intersections. These areas could be enhanced with benches, street trees, and public art. Immediate and ongoing Ancaster Heritage Village BIA and City A full evaluation of parking locations is required in view of the need for both additional general parking and street parking in front of as many businesses as possible Short-term Ancaster Heritage Village BIA and City Establish a level of service for enhanced maintenance and appearance of the public realm (e.g., roads, sidewalks, gardens and planters, signage, street furniture, and public buildings). Short-term Ancaster Heritage Village BIA and City Consider the establishment of urban design guidelines to ensure that a consistent building theme is enforced and discuss the pros and cons of establishing a Heritage Conservation District. Short to mediumterm Ancaster Heritage Village BIA and City 5.7 Measuring Success Overall, success can be measured by a number of factors including but not limited to: Increased sales Positive changes in consumer survey benchmarking – visitation, length of visitation, expenditure, trade area, etc. Lower vacancy rates Positive press and media articles Number of benches, light standards, and other landscaping put in each year Public and private investment in Ancaster Heritage Village (value of private redevelopment of buildings each year) Urban Marketing Collaborative 101 APPENDICES Appendix B Retention and Resources