Northeast Ohio Regional Retail Analysis
Executive Summary
Effects of National Retailing Trends on the Region
Today, retailing is characterized by corporate ownership, high volume, thin margins and shrinking operating costs. Retailers focus on overall corporate growth as the benchmark while working within short-term planning horizons.
Retailing practices developed in corporate offices in distant cities have had a profound impact on local communities throughout the United States, including Northeast Ohio.
| Rank | Retailer | Revenue (billions of dollars) |
|---|---|---|
| 1 | Wal-Mart | 137.6 |
| 2 | Sears | 41.3 |
| 3 | K-Mart | 33.6 |
| 4 | Dayton Hudson | 30.9 |
| 5 | J. C. Penney | 30.6 |
| 6 | Home Depot | 30.2 |
| 7 | Kroger | 28.2 |
| 8 | Safeway | 24.4 |
| 9 | Costco | 24.2 |
| 10 | American Stores | 19.8 |
|
Table 2. Top Ten Retailers in the U.S. Measured by Sales Revenue, 1998 SOURCE: National Retail Federation, 1998 |
||
Land Use: The dramatic increases in average store size have significantly impacted the store site by requiring land assembly, demolition of existing structures and rezonings. In addition, land use is impacted by the need for more parking, the reduction of open space and the spinoff effects on smaller businesses.
Economic Vitality: When a national corporation makes a decision to close or relocate stores, it can result in not only a loss of jobs and tax base but a weakening of a local retail district. For example, when drug store chains indicated a preference for free-standing stores, the commercial strip centers lost an important anchor tenant and the loss of customer traffic. Finding a replacement anchor or sub-anchor has remained a difficult challenge in many areas.
Infrastructure Capacity: Corporate decisions regarding the size and specific location of a proposed retail complex can adversely affect the ability of existing road networks to absorb additional traffic and sewers and streams to handle increased stormwater runoff. Consequently, communities are often forced to seek funding to expand these facilities to accommodate the new development.
 |
|
|
Community Appearance: Corporate policies regarding site layout, building design, parking requirements and sign age preferences affect the appearance of local retail districts. It is important for communities to develop local standards based on community values if they are to preserve their architectural heritage and cultural uniqueness at a time when national retailers are increasing their presence in the region.
| << Previous | Executive Summary | Next >> |
