THE DISTRICT OF SQUAMISH RETAIL STRATEGY

Transcription

THE DISTRICT OF SQUAMISH
RETAIL STRATEGY
Prepared for:
Lee A. Malleau
Economic Development Officer
District of Squamish
Prepared by:
TREC International Inc.
January 2005
Table of Contents
PREFACE ___________________________________________________________________ I
EXECUTIVE SUMMARY________________________________________________________ II
1.0
PROJECT UNDERSTANDING, REPORT OBJECTIVE AND APPROACH ________ 1-1
1.1
1.2
1.3
PROJECT UNDERSTANDING ________________________________________________________________ 1-1
REPORT OBJECTIVE _____________________________________________________________________ 1-1
APPROACH ____________________________________________________________________________ 1-1
2.0
REVIEW OF RETAILING TRENDS _______________________________________ 2-1
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
INTRODUCTION _________________________________________________________________________ 2-1
REVIEW OF CONSUMER TRENDS ____________________________________________________________ 2-1
PLACE MAKING AND THE REVITALIZATION OF THE DOWNTOWN DISTRICT ____________________________ 2-7
PRODUCTS OR RETAIL STORES TRENDS ______________________________________________________ 2-9
SHOPPING IS BECOMING MORE ALIGNED WITH ENTERTAINMENT __________________________________ 2-10
TRENDS FACING THE RETAIL LANDSCAPE ____________________________________________________ 2-19
FUTURE TRENDS OF THE 21ST CENTURY _____________________________________________________ 2-21
RETAIL IMPLICATIONS __________________________________________________________________ 2-23
SUMMARY ___________________________________________________________________________ 2-24
3.0
SQUAMISH RETAIL ASSESSMENT______________________________________ 3-1
3.1
3.2
3.3
3.4
3.5
INTRODUCTION _________________________________________________________________________ 3-1
OVERALL DISTRICT OF SQUAMISH ASSESSMENT _______________________________________________ 3-1
ASSESSMENT BY PRECINCT WITHIN SQUAMISH _________________________________________________ 3-4
RETAIL/COMMERCIAL IMPLICATIONS ________________________________________________________ 3-5
SUMMARY ____________________________________________________________________________ 3-6
4.0
ASSESSMENT OF COMPETITIVE INFRASTRUCTURE ______________________ 4-1
4.1
4.2
4.3
4.4
4.5
INTRODUCTION _________________________________________________________________________ 4-1
EXISTING CENTRES _____________________________________________________________________ 4-1
FUTURE DEVELOPMENT __________________________________________________________________ 4-4
OVERVIEW OF MAJOR CULTURAL, ARTS, RECREATION, EDUCATION, & ENTERTAINMENT
(CARES) FACILITIES ____________________________________________________________________ 4-9
SUMMARY ___________________________________________________________________________ 4-10
5.0
CONSUMER RESEARCH FINDINGS _____________________________________ 5-1
5.1
5.2
5.3
5.4
INTRODUCTION _________________________________________________________________________ 5-1
SURVEY RESULTS: ORIGIN AND SHOPPING CHARACTERISTICS _____________________________________ 5-2
DEMOGRAPHIC PROFILE OF SURVEY RESPONDENTS _____________________________________________ 5-9
SUMMARY ___________________________________________________________________________ 5-10
6.0
TRADE AREA DELINEATION & MARKET ANALYSIS _______________________ 6-1
6.1
6.2
6.3
6.4
6.5
INTRODUCTION _________________________________________________________________________ 6-1
TRADE AREA DELINEATION _______________________________________________________________ 6-1
TRADE AREA CHARACTERISTICS ___________________________________________________________ 6-3
TOURISTS PROFILE _____________________________________________________________________ 6-11
SUMMARY ___________________________________________________________________________ 6-19
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Table of Contents
7.0
RETAIL EXPENDITURE POTENTIAL ASSESSMENT ________________________ 7-1
7.1
7.2
7.3
7.4
INTRODUCTION _________________________________________________________________________ 7-1
RETAIL CUSTOMER GROUPS _______________________________________________________________ 7-1
EXPENDITURE PATTERNS _________________________________________________________________ 7-4
SUMMARY ___________________________________________________________________________ 7-10
8.0
WARRANTED FLOOR SPACE ASSESSMENT _____________________________ 8-1
8.1
8.2
8.3
8.4
INTRODUCTION _________________________________________________________________________ 8-1
FACTORS CONTRIBUTING TO ADDITIONAL FLOOR SPACE _________________________________________ 8-1
CATEGORY TURNOVER, MARKET SHARE AND WARRANTED FLOOR SPACE ___________________________ 8-2
SUMMARY ____________________________________________________________________________ 8-3
9.0
IMPACT ASSESSMENT _______________________________________________ 9-5
9.1
9.2
9.3
9.4
9.5
INTRODUCTION _________________________________________________________________________ 9-5
OPPORTUNITY COSTS OF OUT OF SQUAMISH SHOPPING __________________________________________ 9-5
COSTS/BENEFITS OF ADDITIONAL RETAIL/SERVICE FACILITIES WITHIN SQUAMISH _____________________ 9-6
HOW LOCAL MERCHANTS CAN COMPETE & THRIVE IN A BIG BOX ENVIRONMENT _____________________ 9-7
SUMMARY ____________________________________________________________________________ 9-8
10.0
MERCHANDISING & TENANT MIX PLAN ________________________________ 10-1
10.1
10.2
10.3
10.4
INTRODUCTION ________________________________________________________________________ 10-1
MERCHANDISING OBJECTIVES ____________________________________________________________ 10-1
MERCHANDISING STRATEGY AND TENANT MIX PLAN __________________________________________ 10-2
SUMMARY __________________________________________________________________________ 10-10
Appendices:
Appendix I: Review of Retailing Trends
Appendix II: Overview of Factory Outlet Retailing
Appendix III: Squamish Consumer Retail Survey
Appendix IV: Projected Expenditure Potential for Squamish
Appendix V: Tourism Retail Expenditure Potential
Appendix VI: How Local Merchants Can Compete & Thrive in a Big Box Environment
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Table of Contents
PREFACE
This report was commissioned by Ms. Lee A. Malleau, the Economic Development Officer with
the District of Squamish in August, 2004 and was performed during the months of September to
December 2004. This examination of the market and corresponding merchandising and tenant
mix plan builds upon the information provided in the Downtown Squamish Concept Plan as well
as several other plans and reports that the District had commissioned in the past several years.
The figures for the report are based upon an evaluation of the present general level of the
economy of Squamish and the Sea to Sky region as well as historical numbers received from a
variety of sources as noted in the report. It neither takes into account nor makes provisions for
the effect of any sharp rise or decline in local or general economic conditions. We do not warrant
that the supportable floorspace and market share estimates will be achieved. However, they have
been prepared conscientiously on the basis of information obtained during the course of this
study and our experience in the planning and redevelopment of many commercial real estate
projects as well as economic development or revitalizations.
A regional examination was carried out in conjunction with detailed discussions with local,
regional, and provincial officials. The reference material for this report was derived
predominately from private and public sectors, government publications and professional
organizations that TREC International holds memberships or reviews material on a regular basis
to keep abreast with most recent trends affecting the retail and tourism industries.
Site investigations were conducted to compile an extensive inventory of commercial space in the
District. In addition, a review of the most recent available population data and other studies that
have been prepared by the District and Province were examined to prepare the subject report.
This report is based upon our understanding of the status of the market, consumer preferences,
and respective retailers at the time of study.
The merchandising and tenant mix
recommendations have been prepared conscientiously on the basis of the information gathered.
TREC International Inc., however, does not warrant that retailers and other potential tenants that
are referenced will materialize or that any opinions or perceptions that we may have as to their
level of interest, or suitability, as expressed in this report, will lead to further intent from these
parties.
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EXECUTIVE SUMMARY
REVIEW OF RETAILING TRENDS
Overall the success of the District of Squamish will be highly dependent on the way it presents
itself to visitors and customers. Theming the retail, albeit carefully and blended in the
surrounding natural and cultural environment is essential in order to offer visitors an added
experience, as well as generating higher sales and profits. Provincial tourism statistics have
indicated that there is a strong demand among tourists for shopping attraction (second most
popular activity) in the region. Therefore, it is vital in designing the downtown and nearby
waterfront as a kind of ‘stage’ and allowing tenants to display their items in a playful way in
order to capture the customers’ attention, and more significantly their imagination.
The overall theme of these areas that reflects the Sea to Sky region will provide a lot of
flexibility and fun for individual retailers within the District of Squamish. Moreover, animating
the waterfront with exciting tenants holds significant potential to reinforce the Sea to Sky
outdoor experience for visitors.
Apart from the theme, retailers in North America have begun to experiment with innovative
ways of retailing to enhance the experience of their visitors, such as appealing to consumer’s five
senses in their retail offerings.
To summarize some of the products and retail store types that are increasingly demanded by the
new millennium consumer, Table 2.2 highlights the key consumer products and trends that are
affecting retail in the next decade.
Table 2.2 - Key Retail Practices and Trends
What’s Hot
What’s Not
Consumers
Optimistic Consumers
Discerning Shoppers
Personalized, idiosyncrasy items
Traditional, bulk goods other than day to day items
Recreation, Leisure and Personal Health
Watch TV
Impulse & experiential retailing
Shop till you drop
Small Indulgences, Self-gratifying gifts
Monolithic, banal goods
Products and Services
Highly targeted specialty stores
Unfocused Ma and Pa operators
Book stores with coffee bars
Conspicuous consumption (i.e. furs, expensive
clothing, ‘showing off’, etc
Home fashions and functional art / furnishings
Men’s suits
Self service access & interactive retailing or try
before one buys
Locked up display cases
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What’s Hot
What’s Not
Value driven & entertainment merchandising
Offering everything to everybody
Career casual apparel / Outdoor look
Furs
Everyday low prices
Designer chic
Customer service
Sales hype
Knowing your market
Untrained sales staff
Shop till you drop
Shopping and Entertainment
Retail facilities designed with a theme
Monolithic designed retail stores
Restaurants that comes with an experience
Traditional restaurants with no added features
Outside into the Inside
Sterile interiors
Relaxation Retail
Busy, crowded, uncomfortable retail stores
Integrating Retail and Entertainment
Department Stores
Environmental Themed Stores and Partnerships
Non-‘green’ stores
Store within a store (see examples in body of
report)
Discrete retail stores & eateries
Hi-Tech Retail
Antiquated Retail
Source: TREC International Inc, Urban Land Institute, International Council of Shopping Centres, Retail Council of Canada, Tourism BC,
Resort Forum, International Spa Association, and other sources as identified in the report.
* Cultural, Arts, Recreation, Education, Entertainment & Sports
SQUAMISH RETAIL ASSESSMENT
The Squamish retail market has grown and changed dramatically in recent years. As recent as
five years ago much of the retail in Squamish was locally owned and operated and situated
downtown. However, retailing trends impacting on the rest of North America have hit Squamish
with regional, national and international retailers securing new locations along Hwy.99 and
expanding Squamish’s retail base further into the Garibaldi Highlands and Business Park. In the
process Squamish has grown from a localized retail centre into the largest retail centre in the Sea
to Sky Corridor servicing local Squamish residents, other Corridor residents (Whistler, Furry
Creek and Pemberton) and tourists to the Sea to Sky Corridor. Therefore, a blueprint for the
future is more critical than ever.
Recent growth has been largely from regional to international retailers from outside of Squamish
and they have located in high-profile locations along Hwy. 99 away from the previous retail
centre – the Downtown. The Business Park has clearly become the “big-box district” and
Garibaldi Village has definite appeal to tourists, regional residents and residents from north parts
of Squamish. Over the recent past, the Vision and ‘role and function’ of Downtown has not been
as clear. Once the focal point for retail in Squamish, it has seen no retail growth (actually a
decline) in many categories outside of business and personal services or health care.
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All of the retail categories are represented in the Squamish market making it the only full-service
centre in the Sea to Sky Corridor. Squamish also holds potential to strengthen its “full service”
role and to become a true multi-faceted regional town centre for regional residents and tourists
alike. To achieve this, Squamish will need to continue to offer a wide mix of retail and service
choices from local operators to international retailers. A revitalized Downtown and other areas
of Squamish not situated on the highway will play key roles in offering local retailers future
growth opportunities as the more visible highway opportunities are being secured by larger
regional to international retailers.
Overall, the market position for the majority of the retail/commercial mix can generally be
described as currently catering to a lower-middle income market with a mix of traditional and
somewhat contemporary and few avante garde stores. Interestingly, the emergence of the larger
format retailers has put new competitive pressures on existing retailers and each new larger
retailer can have a dramatic effect on a particular retail category. As Squamish continues to
grow and appeal to broader range of residents (higher income) and it grows its reputation as a
tourist destination unto itself, an opportunity for a select group of higher-end retailers and local
specialty shops will also be available.
Updating the appearance of the Downtown adapting the existing spaces to enable larger retailers
would make Squamish more appealing to these high-end retailers/specialty shops as well make
the Downtown more appealing to larger regional to international retailers and factory outlets.
ASSESSMENT OF COMPETITIVE INFRASTRUCTURE
As mentioned much of the new growth has been from retailers from outside of Squamish which
has considerably broadened the merchandise mix to include more brand name products
(Intrawest Outlet) and big box merchandise (Walmart, Home Depot). This is expected to help
decrease the amount of outflow of retail dollars that local residents currently spend outside the
community which has been identified as a major issue for Squamish retailers in the past. To
further reduce the outflow impact Squamish needs to offer unique shopping experiences afforded
by the Villages at Park Royal (cutting edge retailers) or Whistler Village (resort experience).
Looking ahead the Squamish retail market faces several challenges and opportunities. On the
opportunities side, the upcoming oceanfront development on the former Nexen Lands and
Interfor properties offers Squamish a once in a lifetime opportunity to create a
retail/entertainment experience that is truly unique to Western Canada – an experience that could
make Squamish a world-class tourist destination in its own right as well as make it an even more
desirable place to live.
Fortunately, many market factors are also at play that suggest the Downtown is the logical choice
for the next wave of retail development and that it is well-positioned for this wave. Future
retailing trends anticipated over the next 10 years suggests that consumers will be seeking more
of a specialty, experience based shopping experience and the Downtown is the best place in
Squamish for this type of retail. An additional 5,000 residents are also expected to move into
the Downtown core over the next 20 years, which will dramatically increase the population base
in the Downtown. The recent growth of retail in the Garibaldi Highlands and Business Park may
have or could soon reach capacity leaving the Downtown as the only location for the future wave
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iv
of retail in Squamish. The recent growth in international and mass-merchandise retailers may
also mean that these categories will soon reach capacity (if not already) in Squamish. Finally, if
recent proposed CARES initiatives are approved by Squamish residents additional cultural and
arts centres will be located in the Downtown core.
Therefore, the Downtown could be redeveloped to provide an even more attractive environment
to that found in the Villages at Park Royal, Fort Langley or Steveston. Offering a unique
environment for cutting edge retailers and factory outlets offering brand named goods may be an
effective way to attract both residents and tourists who are currently spending their retail dollars
outside of Squamish.
On the challenges side, if the future growth in retail in Squamish is specialty and heavily
experience oriented, Squamish already faces a tough competitor in Whistler and Park Royal. It
also faces future potential competition from an approximately 100,000 sq.ft. retail/entertainment
oriented redevelopment of the Britannia Mining Museum. Squamish should seek out ways to
provide complimentary retail, rather than compete directly with this project.
Also, in order to be successful in the future tourist market Squamish will need to create a
retail/entertainment experience that is authentic and unique - an experience that differentiates
Squamish from other parts of the Corridor and capitalizes on the rich heritage (logging, marine,
First Nations) of Squamish and its truly spectacular natural setting. Finally, as the “Outdoor
Recreation Capital of Canada”, Squamish has an outdoor recreation infrastructure that is
unparalleled in North America. Consequently, Squamish can offer unique tourist experiences
that combine cultural, arts, recreational, education, entertainment and sports unlike any other in
North America. Therefore, Squamish needs to work ensure that this infrastructure will remain in
place for the foreseeable future and that amenities are created to enhance the experience of
tourists and further its competitive position as a tourist destination in the Sea to Sky Corridor.
CONSUMER RESEARCH FINDINGS
Consumer research was conducted using the Point-of-View electronic survey system over a sixweek period between October to early December. Both existing and potential customers were
surveyed and just over 900 completed questionnaires were recorded. The overall response to new
retail development was positive. The survey respondents fell into two categories, which were
regional residents/tourists, and local residents.
Both visitor segments were highly aware of downtown Squamish, but only a small portion of
those respondents were planning to visit the area. Over half of those surveyed said they would
patronize businesses in downtown Squamish if certain activities and new businesses were
developed there. When asked what food service retail would attract both regional and local
respondents, the highest responses, at around 47% were a "Natural Foods Market/co-op" and a
permanent "Farmer's Market." When asked about Comparison Retail, “Clothing and
Accessories” were desired by 83% of Greater Squamish respondents and by 59.3% of regional
residents (those largely Whistler & Pemberton). In terms of Other Services, “Attractions and
Live Theatre” were selected most frequently (42% and 38% of Squamish respondents
respectively) and (27.1% and 36.6% for regional residents, respectively).
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Over 74% of the total respondents surveyed lived in the Greater Squamish area. Many of the
respondents visited downtown Squamish for Convenience goods, but preferred to shop for
products such as clothing, home furnishings/appliances, and services such as
restaurants/entertainment outside of Squamish, with selection and pricing being the most
important reasons. Almost 22% of the local Squamish residents spend less than 10% of their
annual household spending on Retail, Dining and Entertainment purchases outside the District of
Squamish while 30.4% spend between 11-25% on these categories and almost 24% spend
between 26 – 40% of their annual household spending on the above three categories outside the
District of Squamish. These same respondents asked for a wider selection of retailers, more
competitive pricing, and improved quality of goods within Squamish. Similar to the visitors, over
half of local residents would spend more time downtown if there were more interesting activities
and businesses. The local residents also felt a permanent Farmer's Market was needed to improve
shopping. Furthermore, if more shops were open in Downtown Squamish on Thursday and
Friday evenings and/or if there were some interesting factory outlet stores, 67% of Squamish
Resident respondents said they would patronize the area more often.
Many similar results were posted by both categories of respondents where only a few them
visited downtown, but both groups of respondents vied for more activities and businesses, which
would attract them to visit more often and stay longer. For example, approximately 56% to
almost 68% of the regional residents/tourists and local residents, respectively, indicated they
would visit downtown Squamish if it had some interesting factory outlet stores.
TRADE AREA DELINEATION & MARKET ANALYSIS
The District of Squamish serves as a regional hub for retailing and services for the SquamishLillooet Regional District. This role will be enhanced further with the repositioned Downtown
Squamish core. Based on a number of factors, the Primary Trade Area (PTA) is delineated as
the southern portion of the Squamish-Lillooet Regional District comprising communities such as
Squamish, and Britannia Beach. The Secondary Trade Area (STA) includes Whistler,
Pemberton, Lillooet and many of the smaller communities situated in the northern portion of the
Squamish-Lillooet Regional District. A profile of young and single residents inhabits the STA
while a young family oriented population with large households characterizes the PTA. Both
trade areas possess above average household income. This younger area population with higher
than average income has the potential to translate into higher spending in the community. Such a
consumer profile would be well served by a variety of value-oriented retailers and convenient
‘one-stop’ lifestyle shopping.
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According to the delineated trade areas, the forecast population base for the two trade areas
identified for the District of Squamish is summarized in Table 6.1.
Table 6.1: Historic & Projected Population for the Squamish Trade Areas
PTA
1986
1996
2003
2004
2005
2010
2015
10,157
13,994
14,954
16,000
16,560
19,668
23,359
37.8%
6.9%
7.0%
3.5%
18.8%
18.8%
7,734
15,407
20,225
19,853
20,101
22,143
24,248
99.2%
31.3%
-1.8%
1.2%
10.2%
9.5%
17,891
29,401
35,179
35,853
36,661
41,811
47,607
64.3%
19.7%
1.9%
2.3%
14.0%
13.9%
% Change
STA
% Change
TTA
% Change
Source: Statistics Canada, 2004; BC Stats, 2004; District of Squamish, 2004; TREC International Inc., 2004.
The Vancouver Coast & Mountains Region drew about 38 million visitors in 1995 with
approximately 2 million destined for Whistler. These visitors also poured $3.4 billion into the
region. This poses as a large potential for Squamish to capture more of that market.
As Squamish and the surrounding trade areas continue to grow, the demand for new retailing,
particularly well known regional and national operators emphasizing a value niche, would
increase over time. As well as incorporating and marketing a cultural component within the
revitalized Downtown Squamish and waterfront area, this niche would serve to not only
differentiate the District of Squamish, but more importantly cater to a more demanding resident
population as well as a changing tourist customer base which values understanding culture that is
set in an entertaining and educational environment. This has significant economic implications
to Downtown Squamish as cultural tourists are typically higher spending and shop significantly
more than tourists who travel for other reasons.
RETAIL EXPENDITURE POTENTIAL ASSESSMENT
The user groups and projected number of visitors that will contribute to both the overall District
as well as specifically the viability of the revitalized downtown and planned waterfront area of
Squamish are as follows:
Primary Customer Groups
Secondary Customer Groups
i District of Squamish Residents
i Squamish-Lillooet Regional District
Residents (Lillooet, Pemberton, Whistler,
etc.)
i District of Squamish Winter & Summer
Tourists
i Whistler Destination Tourists (Winter &
Summer)
i Greater Vancouver Residents – Daytrippers
i Vancouver Coast & Mountains Region
Visitors (not incl. Whistler)
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vii
The expenditure patterns and shopping motivations of this diverse range of user groups are quite
different. Thus, the ability for the District to capture a share of these markets will also be a
challenge and will require distinct tenant mixes to tap into a share of the potential sales from
these markets or customer groups. As the level of retail floorspace that can be supported by
resident markets is limited by the existing and projected population levels within the two
trade areas identified for the District, it is the visitor markets that have the greatest
potential to further support additional commercial development within the District.
The percentage of the total visitor markets are expected to increase over the 2005 to 2015 period
due to the District embracing tourism to a significantly greater degree than at present,
particularly with a stronger downtown tenant mix and associated waterfront development. This is
considered to be achievable due to the fact that the Vancouver Coast & Mountain region
presently does not have many ‘distinctive waterfront’ shopping/entertainment destinations
or factory outlets, both of which typically increase tourist-shopping expenditures.
Given the relative ‘perceived’ distance of Squamish from Vancouver, however, the ability of
retail by itself to attract a considerable amount of non-destination visitors is a constraint.
Although this distance will be decreased and perceptions addressed with the highway
improvements, ancillary uses such as an array of unique restaurants/cafes/deli’s, the adventure
centre, arts centre, museum/other visitor attractions, and other entertainment facilities and events,
etc. will add significant energy to the downtown and waterfront.
The importance of these traffic generators is re-enforced by the fact that potential consumers are
attracted to resort towns or tourism destinations for reasons other than retail yet such trips
generate impulse purchases. As other tourism based communities such as Vail, Freeport,
Manchester, La Conner, and Canmore have demonstrated, it is typically a clustering and
‘bundling’ of a variety of both commercial and natural attractions, including creating an
‘experiential’ setting, that ultimately captures the visitor market.
It is important to note that the percentage or market share of the total visitor markets that will
visit the District of Squamish, particularly its downtown and waterfront area, is largely
dependent upon the number and nature of traffic generators that exist and will be provided to
attract these markets. Thus, it is assumed that there will be a sufficient critical mass of facilities,
attractions, activities, and events to draw visitors, whether this is from those already visiting the
Sea to Sky corridor, Vancouver Coast & Mountain tourists or daytrippers from the Vancouver
region.
WARRANTED FLOORSPACE ASSESSMENT
Table 8.4 outlines the amount of floor space by type of retail/service category that is supportable
for the 2005 to 2010 time period. As noted, there is presently an over supply of commercial retail
floor space that is oriented mostly to local and regional residents. Although not as large as what
currently exists, the Squamish commercial supply will likely remain oversupplied until after the
2010 period. The categories that are mostly in an oversupplied situation include: household
operations; recreation/entertainment services; and restaurants & cafes. This assumes that WalMart will be open in 2005. Once Home Depot is developed and open, the category of home
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viii
building and supplies will be oversupplied; this may not be as large as the numbers reflect due to
the increasing supply of seasonal residents in the Sea to Sky corridor. Furthermore, when the
existing and potential tourism expenditures are considered, the latter two categories are closer to
a balanced market.
Table 8.4 Total Supportable Floorspace from Resident & Tourism Markets - District of Squamish
Resident Trade Area
Market Supportable
Floorspace ¹
(sq.ft.)
2005
Convenience/Services
Food
Health & Personal Care
Business & Personal Services
Comparison
Clothing & Accessories
Household Operation
Household Furnishings & Equipment
Home Entertainment Equipment & Services
Recreation Equipment & Associated
Services
Home Building & Supplies*
Auto Sales Parts & Operation
Food/Beverage/Entertainment
Recreational/Entertainment Services
Restaurants & Cafes
Total Vacant Planned*
Total Vacant Existing*
8,418
9,684
-4,606
3,341
87,394
-8,421
-13,307
586
332
-65
-79,348
187,617
-114,251
-24,970
-89,281
75,712
56,883
Supportable
Retail Floorspace
for Tourism ²
(sq.ft.)
Total Supportable
Floorspace
(sq.ft.)
7,178
15,597
38,385
125,779
114,560
309
Total Floorspace
2010
Food
Comparison
Household Operation
Services
Restaurants & Cafes
-151,033
160,124
9,090
19,027
14,260
-2,269
7,036
169,335
16,220
-11,922
10,286
4,997
9,936
11,033
30,061
57,147
226,482
168,047
69,927
Total Floorspace
2015
Food
Comparison
Household Operation
Services
-42,352
236,227
193,875
43,279
24,778
4,075
14,426
240,167
22,960
-6,821
17,995
7,329
18,348
17,567
60,846
114,680
354,848
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-76,640
216,458
-98,120
-10,681
-87,439
75,712
56,883
-71,994
ix
Restaurants & Cafes
Resident Trade Area
Market Supportable
Floorspace ¹
(sq.ft.)
252,350
-89,576
-6,444
-83,132
75,712
56,883
Total Floorspace
Supportable
Retail Floorspace
for Tourism ²
(sq.ft.)
61,276
Total Supportable
Floorspace
(sq.ft.)
292,998
203,422
425,246
486,521
Source: TREC International, 2004
Notes:
*Denotes figures are existing floorspace numbers while the rest reflect warranted floorspace
¹ See table 8.1
² See table 7.2
By 2010, almost 194,000 sq. ft. of retail commercial floor space is warranted in the District
which increases to approximately 485,000 sq.ft by 2015. As previously mentioned in Section 7,
this assumes that the District develops a ‘distinctive’ tenant mix in downtown Squamish and as
part of its waterfront development. The majority of this warranted floor space would be largely
supported by day visitors, travelers to Whistler, and other tourism based markets.
It is also important to note that the warranted floor space determined in this table is not
necessarily the final floor space allocation that can be developed in the district. Nevertheless, it
provides a guide to the overall space allocation subject to the gross build able area based on
approvals from the District as well as actual leasing/confirmation from retailers and other major
businesses that can be attracted to achieve the estimated capture rates.
IMPACT ASSESSMENT
The opportunity costs associated with out of Squamish shopping has been significantly decreased
with the extensive addition of commercial infrastructure that has been added in the District
during the last decade. However, there is a strong opportunity to decrease this even more in
certain categories by embracing both existing and potential new markets such as day-trippers,
tourist markets and seasonal residents that will inevitably increase not only in the Sea to Sky
corridor but directly within the District itself.
It is estimated that approximately 23% of the total District’s retail sales or at least $41.7 million
of sales will continue to ‘outflow’ from Squamish in 2005. While retail commercial sales will
likely continue to increase, ‘outflow’ or out of Squamish shopping will remain in several
commercial categories given the more extensive commercial infrastructure (with greater
selection and better pricing) in Greater Vancouver and elsewhere. However, by embracing the
large visitor and tourism based markets, with the addition of certain merchandising categories
(see Section 10), it is projected that this outflow can be decreased to approximately 17.5% of the
potential retail sales (or $33.5 million) and 14.2% (or $28.6 million) by the years 2010 and 2015,
respectively.
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Some of the major costs and benefits of additional retail/service infrastructure for the community
can be summarised as follows. The costs of providing too much retail/service in the community
will cause a negative impact on existing retailers in the categories that are identified as being
oversupplied. However, by embracing tourism and tapping into other markets such as daytrippers and seasonal residents, many of the perceived oversupplied categories can be
embellished and provide spin-offs to existing merchants. Not tapping into the latent demand that
presently exists would deter the District and many of its merchants from millions of dollars of
potential revenue plus the associated tax and employment benefits. In the long term, if the
commercial floor space in the District is constrained, the resulting increased in rents typically
squeezes out many but the most lucrative businesses. Businesses that cater mostly to local
residents such as personal and home services including a stand alone bakery, dry cleaners,
shoemakers, plumbers, tailors and locksmiths typically find it difficult to generate sufficient
revenue required to pay the rent. In addition, for many local residents, quality of life benefits are
negated such as being a more self-sustainable community to avoid having to leave the
community to acquire their needed products and services.
With the completion of Wal-Mart, Canadian Tire and Home Depot, the previous section has
documented that the District is already saturated in many retail categories. Nevertheless, there is
an opportunity to replace or work with some of the existing lesser quality tenants to upgrade and
meet the selection, pricing and quality of merchandise that is demanded by both local and
regional residents. In addition, there is a significant market opportunity to supplement the
existing commercial mix with tenants that cater more to the tourist and day-tripper markets.
Previous research has also revealed that there are a number of tried and proven techniques
available to local merchants where they can not only survive but thrive in mass merchandiser’s
environment. These include: adopting a more positive attitude and preparing to benefit from the
additional traffic that is generated by them; embracing better merchandising and marketing
practices; providing superior service, improving customer service and continually striving to
improve operating efficiencies.
MERCHANDISING & TENANT MIX PLAN
The main retail and service categories that were identified to be warranted for District of
Squamish are recommended to be merchandised according to the following seven subthemes
reinforcing the overall experiential/arts/lifestyle and nautical theme for the downtown and
waterfront areas with some holding potential for the other commercial areas:
1. Convenience / services such as a natural foods market, private liquor store, permanent
farmers’ market and personal services such as video rental, dry-cleaning, small
convenience store(s), etc;
2. Fashion/sporting apparel, recreation equipment & accessories
3. Office, communications & tech-tainment such as office supplies, music/electronics,
telephone, accessories, etc;
4. Home furnishings, accessories & gifts;
5. Wellness/health & personal care products and services;
6. Restaurants, take away; and
7. CARE (Cultural Arts Recreation and Arts) facilities
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In total, an estimated 486,500 of total floor space can be incorporated into the District’s five
commercial areas by 2015. While much of this space will not be warranted until significant
improvements are made to attract more tourists into the community, if the right tenants and uses
are selected, there is strong potential to draw the existing day-trippers and destination tourist
markets into the downtown core earlier than 2015. Examples of retailers that hold potential in
this regard are unique quality oriented one of a kind type shops in some of the above categories
as well as factory outlets. This would then stimulate additional traffic to existing shops and
services as well as for the restaurants/take-away and health/wellness categories. In addition, there
is an opportunity to attract additional businesses catering to automotive sales, parts and operation
in areas outside of the downtown.
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1.0 PROJECT UNDERSTANDING, REPORT
OBJECTIVE AND APPROACH
1.1 PROJECT UNDERSTANDING
TREC International Inc. is engaged by the District of Squamish to objectively provide the
District of Squamish with retail strategic direction so its leaders can effectively guide the
revitalization of the downtown and facilitate appropriate investment in the retail and professional
services sector throughout the community.
1.2 REPORT OBJECTIVE
The District of Squamish required that a 'market driven' analysis (incorporating both
local/regional consumer research as well as other research) be carried out. This strategic analysis
determined the amount, types, scale, location, impacts, etc. of retail, restaurants, services, and
other appropriate uses that would be warranted within the Community. As outlined in the
District's RFP, "the purpose of the project is to:
x Examine trends and influences on consumer spending including and especially
products and services that are being purchased locally, and which are not, and
why;
x Conduct an economic impact analysis of the implications and opportunity costs of
out-shopping on the local economy;
x Examine consumer gaps and opportunities in the retail and service sectors;
x Prescribe options, opportunities and solutions to address consumer out-shopping
that will preserve the character of the community, adhere to modern planning
values for retail/commercial expansion and location, balance the investment
between downtown revitalization and highway commercial retail (big-box), and
reduce the amount of spending outside the community."
1.3 APPROACH
A two component process was completed as follows:
1. Economic/Market Study; and
2. Merchandising/Tenant Mix Strategy;
The first component in the process is the preparation of an economic/market study. In brief, this
report highlights the size of the existing and potential markets as well as the expenditure
potential (by merchandise and service category) that the District of Squamish can capture given
the right mix of tenants and commercial uses.
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To match and cater to the existing and potential markets identified in the market study, a
merchandising and tenant mix strategy was completed as the second component. This strategy
identifies the best mix of tenants for each of the five commercial areas within the District of
Squamish to maximize sales and economic benefits to the overall community.
A brief outline of the major steps and deliverables for each of the previously mentioned
components is outlined in the following two subsections.
PART I: ECONOMIC/MARKET STUDY
Building on the work already completed as part of the District of Squamish Downtown Concept
Plan, the following tasks are completed as part of this component.
Our Economic/Market program is the initial part of the merchandise/tenant mix strategy and
business recruitment process.
This component of the program started off with an intensive field trip to District of Squamish
firstly to inspect the downtown and specific sites such as the major commercial areas (both
existing and planned sites such as the waterfront) and then completed the necessary field work
for the inventory supply work and market assessment. A kick-off workshop with the Economic
development department was also held in District of Squamish at this time. After this we
proceeded to:
x disseminated and verified field observations and data collected;
x analysed market information; and
x Formulated findings and recommendations.
The key objective of this task was to ensure that the District of Squamish is ideally matched and
balanced to the market potential for the respective retail and business categories so a realistic and
positive assessment is presented as part of the retail strategy. This is also crucial to the
merchandise mix and development strategy for each of the commercial areas within the District
of Squamish and particularly for a major redevelopment project such as the waterfront.
Thus, this crucial and essentially quantitative section of this component formulated the following
results:
x Inventory of existing commercial floor space for each of the five main commercial
areas within the District
x Major trends facing the retail, restaurant and entertainment industries
x Competitive Infrastructure
x Demographic Analysis for the respective trade areas that exist and hold further
potential for District of Squamish
x Customer Profile Analysis (including Point-of-View (POV) electronic survey
findings)
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x Examination of the existing and projected size by Market Segment (local and
regional residents, non-resident BC and BC resident based visitors)
x Retail Expenditure Assessment by Market Segment
x Positioning of the five commercial areas within the District of Squamish
x Merchandising Opportunities and Business Niches
x Projected Market Share and Sales Volumes by Retail and Business category
x Warranted Floor space Balance per Merchandising/Business Category
x Appropriate Phasing of Warranted Floor space by Commercial Area
PART II: Merchandising/Tenant Mix Strategy
This component of the program synthesized all strategic research findings and input by the
project team members into an action plan that will provide a series of detailed recommendations
to guide the retention of existing businesses, as well as the expansion and subsequent retail
development/investment process. In particular, this component will examine the following:
x Socio-economic/demographic and lifestyle characteristics of trade area residents;
x Needs, preferences and lifestyles of existing shoppers to District of Squamish
integrating findings from various sources available both in the District of
Squamish area as well as the completed POV survey findings;
x Similar characteristics of visitors and tourists that presently visit District of
Squamish and the Sea to Sky region including reasons why they visit the region
and what they seek;
x Inherent market opportunities and “voids” that are found to exist from the
competitive assessment;
x Market expenditure levels including those from visitors and tourists;
x Current and future retail, tourism, recreation, cultural/arts, and leisure trends
affecting the shopping and business environment;
All of the above listed considerations were utilized to provide a list of merchandising plan/tenant
mix recommendations.
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2.0 REVIEW OF RETAILING TRENDS
2.1 INTRODUCTION
Today’s retail industry, regardless of whether it is located in urban downtowns or in resort
villages, operates amidst and responds to a wide variety of seemingly conflicting trends. Despite
the present soft economy and the recent terrorist upheaval associated with 9/11 of 2001,
consumers are optimistic in spending money, albeit in certain environments.
While consumers worry about job security and long-term prosperity, these concerns are not
necessarily inhibiting them from adding to their credit card debt or spending during their
vacation period. Household incomes are reportedly declining in real dollars, yet consumption
expenditures are increasing. Shoppers simultaneously demand good service and value, pricing
offering ‘one stop shopping’ and merchandising depth. Working adults, who say they have little
time to shop, go to shopping villages or precincts to be entertained or to spend time with their
family.
What does all this mean for the downtown or commercial planned for District of Squamish's
waterfront area. This translates to a sudden increase of opportunity to capitalize on these new
trends. In order to thoroughly understand and provide retailing recommendations to District of
Squamish that are applicable not only for the next several years but well into the next decade, it
is important to briefly review the major trends affecting the retail industry. These can be subdivided into four overall topics: consumers, products or retail stores, entertainment shopping and
future trends of the 21st Century. Appendix I provides a more detailed description of these trends
while Appendix II highlights an overview of the factory outlet industry.
2.2 REVIEW OF CONSUMER TRENDS
Consumers are Getting Increasingly Optimistic about the Future.
x Retail sales trends obtained from Statistics Canada and the Retail Council of
Canada confirm a continued recovery in consumer spending in British Columbia
and Western Canada as a whole.
North American Consumers are Getting Older & Have Discretionary Income to
Spend
x With age comes experience, maturity and ability to distinguish quality and value
from inferior goods and gadgetry.
x Tourism British Columbia reported that the population of the North American
Baby Boomers (mid-30s to early-50s), translated to about 92 million people,
represents approximately 30% of the population.
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x As people age, increasingly more purchasing decisions become discretionary.
Those households headed by 45 to 54 year olds are most likely to have
discretionary income (i.e. money to spend after meeting financial obligations).
Figure 2.1
Average Median Age of the Canadian Population 1991-2001
38
37
36
35
34
33
32
31
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Source: Statistics Canada, 2001.
x The baby boomer generation is seeing a time of increased discretionary income,
which is a major consideration for spending on such things as comfort, escape and
indulgence.
x Currently 30% of the Canadian population is 50+. This will increase to over 45%
within 10 years.
x “The 50+ market is huge. They own ¾’s of all financial assets and account for ½
of all discretionary spending. They are not brand loyal. Not over the hill. Certainly
not sedentary. Instead, they are spenders, travelers, investors, diners, and
decorators. They have the money for the good life and feel entitled to live it.”
Source: Canadian Association of Retired Persons.
x “The absence (or presence) of children in the home has a dramatic impact on the
buying habits of the household. A household without children has more
discretionary income. They can spend on cars, clothes, dining, travel,
entertainment, or investing.” Source: International Demographics Inc. Texas.
x Baby boomers are now “trading up.” This trend sees this generation buying a step
higher than the previous one. Rather than buying a shirt at the department store
this cohort will shop at designer boutiques.
x It is projected that baby boomers will spend more than previous generation retirees
on downtown related goods and services such as:
x Eating and drinking
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2-2
x Prepared and delivered meals
x Leisure time entertainment and cultural activities, such as movies, museums,
bowling, bridge, etc.
A New Generation Is Evolving That Will Fuel the New Trends
x In North America there is the emergence of generation Y. This new generation is
the largest in North American history and is geared towards shopping as a lifestyle
pursuit. Generation Y also has more money to spend than previous generations due
to their parents’ higher rate of disposable income that is passed on to their
children.
x This group is also embracing values such as environmentalism and respect for
family, and will be important in determining their out-of-home environment.
Traditional Families Represent fewer Households
x According to the Urban Land Institute, census figures show that less than 25
percent of Americans are living in a home made up of a mother, father and
children.
x The new consumer household consists of single-parents, two-incomes, and singles.
Therefore, it is important to develop new retail concepts that will fulfill changing
household characteristics.
Increasingly Spending is more tied to Services & Morale
x Although everyone has to purchase such staples goods as food and gasoline, other
expenditures are more closely tied to morale in the retail setting.
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Services Dominating Consumer Expenditure
Figure 2.2
Consumer Expenditure - 1997 C$
Non-Durable
Goods
24%
Services
54%
Semi-Durable
Goods
9%
Durable Goods
13%
Source: Retail Council of Canada, 1998
x Presently, customers are spending more on services, according to the Retail
Council of Canada; services dominated consumer expenditure in 1997 in terms of
dollars spent (See Figure 2.2).
Consumers are Rewarding Themselves with “Small Indulgences”
x To
satisfy emotional fixes, and
indulgence of the senses and allow ego
expression, consumers are seeking selfgratification from smaller (“quality”)
purchases. (e.g. Godiva chocolates,
specialty blended coffee drinks or
cappuccino, etc.)
x This is particularly relevant for resort or
tourist shopping where the overall
experience
is
about
rewarding
themselves and their children or friends
while they are on vacation.
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Goodies Confectionery Store, Chateau Lake Louise, AB
2-4
The Beginning of the New Millennium is the Age of ‘Personalization’ i.e.
Ergonomics
x Simply stated, this trend is about consumers’ need for more ‘personalization’ in
terms of product concept, design, customizability or personalized service.
Consumers are increasingly accustomed to a rich and meaningful experiential
quality in their daily lives.
x Old fashioned-tailored made products and service: made to order coffee drinks,
juice bars, candy counters, packaged guiding activities, etc are on the rise.
x Resorts are prime vehicles to Stage Experiences - the new economic engine of the
21st Century
x Because consumers are constrained with time, they have become increasingly
sophisticated in their thinking of retail. They are now more prone to find
something new and have a desire to experience retail in a different way.
x As exemplified in Figure 2.3, each successive offering to consumers greatly
increases in value because the buyer finds each more relevant to what he or she
truly wants, given their need for convenience, and personalized service. Therefore,
customers want more than just purchase a good, but rather they are willing to
spend more to purchase a good and/or service that is set in an attractive yet unique
setting - one that reflects a whole experience.
Figure 2.3
T h e P ro g re s s io n o f E c o n o m ic V a lu e
$100
R e le v a n t to
D iffe re n tia te d
S ta g e
E x p e rie n c e s
D e liv e r
S e rv c ie s
C o m p e titiv e
$50
P o s itio n
N eeds of
C u s to m e rs
M ake
Goods
E x tra c t
C o m m o d itie s
U n d iffe re n tia te d
Irre le v a n t
$0
1
2
3
P re m iu m
M a rk e t
P ric in g
Source: B. Joseph Pine II, James H. Gilmore, The Experience Economy, Work is Theatre &
every Business a Stage, Harvard Business School Press, 1999.
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2-5
Personalized Service is Essential
According to the Retail Council of Canada, 69% of retailers are planning to offer more
personalized service, and using that as their top customer service strategy (See Figure 2.4).
Figure 2.4
Customer Care
Full Service
26%
SelfService
4%
Personalize
d Service
69%
Other
1%
Increasing Emphasis on Activity, Spending Time Socializing, Personal Health,
Well Being and Longevity.
Figure 2.5
Favorite Pass-Time Activities
Fitness/ Sports Activity
Reading
Walking / Hiking
Social Time with Friends / Family
Relaxing / By Myself
Gardening
Shopping
Arts and Crafts
Watch TV
Camping/Fishing
Entertainment
0%
5%
10%
15%
20%
25%
30%
35%
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2-6
Customers Demand for “Value” in their Retail & Restaurant Offerings
x It is important to note that there is no single notion of value; it can be found in a
wide variety of merchandise at all price points and diverse formats.
x Briefly, value means: good quality (i.e. durable, functional) products, at fair prices
(stores guaranteeing merchandise and sales that are realistic), selection (i.e. in
stock and availability); and service (i.e. knowledgeable, helpful sales staff and
willingness to take special orders or to handle alterations).
The Internet Will Influence Consumerism
x Many convenience purchases will take place online thus allowing more time to
browse and shop or play.
Impulsive Shopping
x Many consumers are hard pressed for time and thus more adept to impulse
shopping.
Impact of Time Pressures on Consumers
x Many more North Americans are spending more time at work than in previous
years.
x More women are spending more time at work, while more women are also
entering the workforce. Women are also usually the primary shoppers in the
household.
x With decrease in leisure time and pressure to spend more time with children,
regular household chores are becoming burdensome. Thus businesses, which tend
to these problems such as cleaning services, dog-walking, and cooking are all
growing. Many North Americans are finding themselves eating out and spending
more on restaurants. Some of the fastest growing businesses are the ones offering
take-out.
x Convenience shopping is a growing trend, with shorter and more task-oriented
trips. The downtown retail landscape enables not having to drive long distances to
the mall, parking their cars, or time spent in between.
x Shoppers are now sharing foci on saving time, convenience and customer service.
2.3 PLACE MAKING AND THE REVITALIZATION OF THE DOWNTOWN
DISTRICT
x People are moving back downtown. This shift in residential patterns is creating a
demand for downtown residential space, thus this will cause a demand for
commercial space to meet the growing market. This growth is not restricted to
large cities.
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2-7
x Aiken, South Carolina, with a population of 30,000, has financial
incentives to attract residential development downtown to help with
their revitalization program.
x In Eureka, California and Peekskill, New York with populations around
20,000 are using downtown artist’s housing for their revitalization
program.
x Asheville, North Carolina; Bangor, Maine; Burlington, Vermont; and
Sheboygan Falls, Wisconsin have relatively small populations and are
seeing an increase in downtown residential development.
x
Increased residential development in downtown areas are good for a
number of reasons:
x Increased residents create a demand for retailers and entertainment
functions, especially good restaurants.
x More residents create a safer and interesting environment.
x As Jane Jacobs describes, residents take “possession” of their area, and
help maintain the property and become involved.
x In many mixed use projects, the residential component makes the
project financially viable.
x The higher storeys can be sources of social and physical problems if left
empty.
x In older buildings, rehabilitated apartments can facilitate property
owners to go after better retail tenants at street level.
x It is important for a downtown to be a 24-hour activity centre.
x There is the emergence of downtown social districts which is actually an old
concept. Downtowns are being revitalized not only as residential and commercial
space, but by social means as well. These spaces will be ‘stages’ to meet family,
friends, and to take out the children, and create a sense of social soul, which has
more importance than the goods and services offered there.
x To create Place Making, it is important to look at the function of the building for
social interaction rather than focusing on the purely architectural and physical
elements. The nature of successful Place Making provides safe, clean, interesting
and fun environment.
x Tools for public entertainment can pose as a centerpiece to attract people, albeit
for people watching – the most mundane. A few examples of open public tools of
entertainment include:
¾A carrousel
¾Ice-skating rink
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¾Model boat pond
¾Children’s pony ride
¾People playing chess or checkers
¾People tossing a Frisbee
¾Teens doing skateboard or inline skate tricks
x Multi-functionality is important in creating a successful downtown and it gives
them their fundamental economic advantage. It doesn’t necessarily have to be the
primary retail or commercial centre, but rather develop an entertainment and
cultural niche. This can provide a strong sense of place.
x The National Main Street Center claims the average residential household in a
downtown area adds $8,000 to $10,000 to its economy.
x It can be assumed that quality and quantity of housing in and around downtowns
will have a large impact on their ability to attract and retain firms in the knowledge
industries.
2.4 PRODUCTS OR RETAIL STORES TRENDS
Based on our discussions with storeowners and analyzing retailing trends, the following are
among the products and retail stores that are reasonably successful in resort towns and
downtowns that cater to tourism.
Convenience and Food Markets
x Stores that offer a selection of convenience items and basic food items that people
typically need during their outdoor outing or while staying at a resort for several
days to a week are popular. This is particularly true if they offer value and ‘close
to street pricing.’
x Consumers like resort guests, are typically willing to pay often 10% to 15% more
than larger grocery stores; they are willing to pay this added premium for the
added convenience and not having to jump into their vehicles to drive outside of
the resort environment.
Distinctive, ‘Browseable’ Goods
x Customers are more acute in discovering and exploring unique goods, which
cannot be found in traditional shopping centers.
x Many of these distinctive goods are generally ‘browseable’, allowing patrons to
see and observe but more importantly, to discover these kinds of items. Exploring
the items set within a distinctive environment, in effect, can become a social
experience for visitors.
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Career Casual Wear
x Well entrenched already in the corporate environment, career casual wear in men’s
wear and which has recently spread amongst female employees is the largest trend
affecting the fashion industry.
x Often labeled as ‘corporate casual’, both leisure apparel and sports wear offered at
many resorts can fulfill this urban necessity.
The Outdoors Look in both Women’s and Women’s Casual
Apparel Continues to be on the Rise.
x The type of clothing sold at Mountain Equipment Co-Op,
REI, Filson, Orvis and L.L. Bean is increasing in many
specialty stores such as Coast Mountain Sports, Patagonia,
Helly-Hanson and North Face.
x At the same time, specialty retailers are expanding their
domain to include new products categories. For example,
Eddie Bauer has expanded from its’ emphasis on men’s
outdoor clothing to include women’s wear, luggage, housewares, and so forth.
Boom in Home Furnishings
x As home and recreational real estate sales are on the rise in most western Canadian
markets, new houses or chalets triggers decorating
purchases of furniture, functional art and
decorative items.
x Many stores, featuring both trendy furniture and
specialty arts and crafts or home accessory stores
have added contemporary collections that appeal
to both baby boomers and people making a
statement within their homes.
2.5 SHOPPING IS BECOMING MORE ALIGNED WITH
ENTERTAINMENT
Retail villages and stores by themselves are becoming more entertainment-oriented as well as
social venues. Entertainment itself has evolved, and its role is changing. Entertainment desires
are shifting to escape, reward, camaraderie, family and comfort values. This has taken a different
direction from bigger-than-life and “plan ahead” events like amusement parks.
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The Creation of Staged Experiences
x In the face of a rapidly changing technological age, customers are becoming more
nostalgic, and are longing for some kind of experience that will take them into the
past, seeking a more sense of security and comfort. Hence the rise of comfort food
and staged or replicated experiences such as a browsing through an old general
store, or visiting a heritage building.
x Increasingly entertainment retail villages and stores are immersed in sensory
stimulation, where sight, sound and fragrances are evident.
Authentic Themed Retail
x Theming can enhance or embellish a
village, through the use of a creative
texture, color, style and building materials
and partly through spatial differentiation.
x The best themed environments, and most
successful, have typically been done at
tourist destinations where developers are
willing to spend more while guests are
willing to pay more. Less voluminous,
high-quality theming will create or
enhance a better brand and image than a lot of poorly done themed finishes.
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Integrating Retailing with Services
x Significant synergy exists between the various
types of stores, restaurants and entertainment
concepts that can be combined into one
building or complex. With the right design
and the animation integrated, people will
linger longer which typically translates into
higher sales (See photos).
Cafes are commonly integrated with ski rentals & ski service areas–
Panorama Village (above left corner) or at Whistler Village (right
corner)
Internet services within the General Store (Gift) environment on Pender
Island (central right)
Wilderness themed children’s play area in the REI store, Seattle, WA
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Environmental Interpretation & Theming within Stores
L.L.Bean Kids Store, Freeport, MA
Practice Areas to Try Out Merchandise
Fly Tying Workshop at one of Gaylan’s Outdoor Stores
Hiking boots demonstration area sponsored by outdoor manufacturers'
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Relaxation Retailing
x Coffee bars, tea rooms and other indoor resting areas (See Photo) feature live
classical or jazz performances, listening
stations, book stores with poetry readings (i.e.
Indigo Books), children’s’ hour, literary
gatherings in cafes are increasingly being
demanded as demonstrated by these stores
continuously increasing sales.
x All of these retailers provide the important
element of social interaction.
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Siting Room in the Books Section of the Vermont General Store, Weston,
VT.
Historical interpretation wall also situated near the back of this section
Concept of Bringing the Outside into the Inside
x Outside-Inside
is defined as creating an
artificial environment that resembles the
outdoors that is incorporated into the indoors, as exemplified by the Bay of Spirits
Gallery in Ontario. (See Photo)
The outdoors of Northern Ontario is replicated in the
cashier desk which is faced with birch bark
Totems, paintings, masks, and other small items are all
sensitively displayed using minimal floor space at the
desk, which also acts to reinforce the store's theme.
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x Animating the waterfront promenade with adjacent tenants holds significant
potential to reinforce the Sea to Sky outdoor experience at Squamish.
x One particular store that has utilized
this concept is Cabellas, which is a
large sporting good store chain that has
become the number one tourist
attraction in many of the states in which
they are located within the US.
x One reason behind their success is that
they have gone to great lengths in
replicating the natural environment to
strengthen their merchandise settings
and creating a ‘wow’ experience for
patrons, as illustrated in these photos.
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Creating an Experience in Restaurants
x Consumers now, view dinning-out as the number-one way to unwind and relax.
Therefore restaurants are offering an even higher level of leisure dining that is
more entertainment-oriented.
x Restaurants featuring diverse environments such as the old west or Australian
outback or L’Shack at Mt. Tremblant that replicates an old Quebec sugar shack are
being used to enhance the visitor's experience (See Photo). These examples could
be combined with museum memorabilia items and be integrated at the some of the
existing or potential food/entertainment venues within the District of Squamish.
New Tastes for Restaurants
x Foodservice and Hospitality Magazine also suggests that healthy food is emerging
as a popular trend. For example, omega-3-rich burgers, orange juice with added
calcium and ice cream packed with vitamins and minerals are becoming popular
menu items for consumers.
Ethnic cuisine continues to be a strong interest among customers
x Plus, more ‘exotic’, bolder tastes and bohemian flavors are becoming the trend of
today’s restaurant industry, which should be considered as other options when
determining the food service outlets within the District.
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Placemaking and Placekeeping
x Creating a place where patrons feel comfortable
and want to linger or creating a community
attraction, a place where you go to see and be
seen is key, and will be essential to the
downtown and waterfront experience in
attracting consumers and setting the stage.
x The overall design for the downtown and
waterfront is in effect creating the stage where
the actors are tenants displaying their wares or
services in order to entertain the guests, which is
already being practiced in Mt. Tremblant.
Hi-tech in Retail
x In recent years, retailers have incorporated new
electronic and communications technology in
their stores, such as computers, listening devices
and video monitors.
x This
high-tech approach to retailing is
particularly appealing to younger, computerliterate consumers who enjoy the stimulation
and sense of involvement.
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2-18
2.6 TRENDS FACING THE RETAIL LANDSCAPE
There are many retail trends facing the industry and this next section will outline the trends
facing the retail landscape.
x Commercial streets are advancing in attracting retailers due to the convenience they
offer the customers and their detachment from mall proprietors. Their place in this
type of environment enables them to adapt to the changing needs of the consumer
in a more personalized and experiential setting.
x Downtowns now offer a more favourable socio-economic environment to attract
retailers, which in turn attract all walks of life.
x Main Street retailing is an increasing trend that attracts both local residents and
tourists. It offers a diverse and interesting mix of small and large tenants that caters
to the local need of convenience shopping, unique environments and lifestyle
experiences.
x Regional malls have declined over the years due to the proximity to some
communities and its operating costs.
x Fewer people are going to the mall and spending less time there. Numbers have
been declining since the 1980’s, and shoppers of all incomes (from high to low)
have changed their attitudes towards a more value driven market .
x Baby boomers are the main market that supports value retail. Retailers such as:
Wal-Mart, Costco, Home Depot and Winners thrive in this market.
st
x 21 century shoppers still desire value, but also want convenience and ambience.
Priorities include:
¾Quick-in, quick-out, close-by shops
¾Established relationships with sales staff to tend to the needs and services of the
consumer
¾Shopping amongst quaint, walkable, entertaining environment
x The warehouse concept is merging with the retail environment and an increasing
number of purchases are made through distribution and warehouse centres as well
online direct purchasing.
x Online Purchasing has had a significant impact on the retail landscape and sales
reached $15.7 billion in the U.S. during the second quarter of 2004. This is an
increase of 23% over the same quarter of 2003. Source: ZDNet, 2004.
x Despite strong growth it will be time before online shopping is dominant. Even if it
grew 10% per year and the rest of retail remained stagnant it would take until the
year 2013 before e-commerce gained more than 10% of total sales.
Source: InfoWorld.com, 2002
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2-19
x Online retail could garner higher annual growth than 10% per year. Some factors
could include:
¾Growing number of people using and learning to use the Internet for a variety of
reasons
¾Female online shopping is fast catching up to male online shopping
¾It is easier to shop online with better-invested and constructed websites
¾Credit card companies have introduced zero liability to ease consumer concerns for
credit card fraud.Increase in broadband connection
¾The desire to save time has spurred online shopping
x Developers are taking interest in downtown ventures. Previously, it was difficult to
get some retail establishments in the downtown area, but nowadays retailers, and
even many big box stores, are vying for this location
x Reasons for retailers to come downtown include:
¾Lack of stores and untapped markets
¾Desire to be close to the consumer
¾Cheaper rents
¾Weakening of power malls
¾Increasing number of affluent and childless households in the area
¾Growing popularity of downtown shopping environments
x Retailers are willing to alter their designs to meet legal requirements and local
needs. Some examples include:
¾Signage and store facades must comply with local design requirements in Whistler
Village.
¾Wal-mart has designed a store in Long Beach, California where an Art Deco theme
dominates and smaller tenants are located around its perimeter providing a
streetscapes idea that eliminates blank walls and offers a more active frontage.
Source: Shopping Centre World, 2002.
¾According to the store’s architects, the Abbarch Partnership, the new Wal-mart in
Squamish will be the best designed in Canada
x The emergence of Lifestyle Centres is now evident in many new mall
developments. One example is the Village at Park Royal in West Vancouver.
Lifestyle Centres are stages to attract people back to the mall and make it more of a
social environment. These shopping areas possess:
¾A pedestrian friendly, urban environment for social and shopping activities.
¾A sense of community and space with increased interaction and a heightened sense of
security.
¾A unique recreational atmosphere.
¾Multiple services and products to satisfy more needs at once.
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2-20
¾A social aspect that draws crowds, which in turn will have an effect on the tenants.
x A sub-centre is emerging to capture specific lifestyles. These consumers have a
common background, which lures specific groups such as the Asian or Latino
community, or the outdoor recreationists and youth. Many of these stores feature
active participation and a “try before you buy” concept.
x There is a surge of home and hearth stores in particular. Despite the lower profit
margins and large storage space these stores have been growing in popularity since
the 1990’s. These stores also thrive in a downtown environment and tend to be
independent. This particular trend inherit these factors:
¾Increased immigration
¾Increase in the number of people forming new households.
¾The 1980’s well-to-do and baby-boomers looking to invest into their homes.
2.7 FUTURE TRENDS OF THE 21ST CENTURY
Based on our analysis of existing literature and conference findings on retailing, the following
are among the trends that are predicted for the near future:
Consumers worldwide will grow increasingly accustomed to a rich and meaningful experiential
quality in their daily lives.
Since 1950, US consumer expenditures on all forms of entertainment have risen by 45%,
while spending on items such as food, alcoholic beverages, apparel and services have decreased
32% during the same period. Therefore, these figures indicate that consumers are gaining a
stronger interest and taste in entertainment experiences.
‘Show architecture’ with experiential environments, will be paramount in appealing to the
interests of future consumers.
Store-within-a-store
concepts
will
be
increasingly utilized, as firms with well-defined
product lines will team up with other retailers
with similar characteristics. For example,
Starbucks, Second Cup and Seattle’s Best
Coffee, have all formed strategic alliances with
retailers in various fields, including, Intrawest,
Indigo, Barnes & Noble, Crate & Barrel, and
Nordstrom, whose patrons fit the same lifestyle
profile as those of the different gourmet coffeebar chains.
Grocery Stores with ready made meals and gas stations with ATM’s are examples of the kind of
product that will be enticing to the busy and multitasking consumer.
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2-21
Environmental Themed Stores and Partnerships will become an important trend in retail
villages and shopping centers, which is something that has already been experimented by large
sporting goods and recreational equipment stores.
Live Performances from musical to concerts and busking to theatre will be important draw
factors for the consumer. It is a vital activity that will engage the masses.
Catering to Hip Communities will be a trend that deals with people such as seniors or retirees
and the baby boomers. The changing notion of consumerism for these groups will be important
to capture the more relaxed experience and an inclination for escape and indulgence.
“Show” Architecture will be a large pull to capture and entertain the consumer right from the
start or even from a distance. This can be a first step to keeping the customer.
Person to Person Service will be one of the leading factors in attracting the customer. As
shopping and consumerism evolves into a more experiential experience the need for more
personal service will be paramount. Thus having experienced and knowledgeable staff to sell and
engage the customer will offer an opportunity for the business to flourish.
Self-Indulgence is an ever-growing market. Businesses such as day-spas, beauty treatments,
masseurs, cosmetic companies, dry cleaning, florists, and other personal services will thrive due
to the demand for pleasure-seeking services.
Destination Resorts will be a form of the new trend. Short leisure trips and urban resorts will
become popular catering to the masses that call for short and close-by mini vacations.
Flex Platforms are fast becoming areas of prosperity rather than cost centres. Flex platforms are
termed as common areas within the retail landscape and can take the form of libraries, town
centres, or community parks.
3 M’s of entertainment will be a major aspect of the new trends. Moments, Memories and
Mementos are ideals that consumers will be looking for when walking away from an experience.
Increasing Female Market Incursion will give the female more discretionary income. The
labour force participation rate of women is expected to rise to 70% by 2020. By providing out of
home experiences that satisfy women many businesses can thrive.
Nostalgia is an aspect that is also part of this new trend. What is old is new and services such as
produce and milk are being delivered to our doorstep, thanks to the Internet.
Selling an Experience will become a new trend that will combine many others to offer more
than just the good or service. Lavish decorations, role playing, themed spaces are all part of the
experience.
Revitilization of Social Centres will be a key in attracting and selling experiences. Refurbishing
old theatres, museums, and arts centres will lure consumers.
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2.8 RETAIL IMPLICATIONS
A brief summary of retail trends that would influence the tenant mix and merchandising within
the District of Squamish is outlined in the following matrix:
TRENDS
IMPLICATIONS
CONSUMERS
Consumers are rewarding themselves with ‘small
indulgences’
x
The aging baby boomers, are reaching a time in their
lives, when escape is a important factor and
consideration in their lives
x
Customers today demand ‘value’ when shopping
x
Fine accessories such as, quality sunglasses,
super in-feet insoles for ski boots, hats, scarves,
belts, hiking/walking shoes, premium quality
toiletries or soaps, etc. would collectively all suit
the interests of the Squamish markets
There will be a need to provide nostalgic
experiences for a population that is increasingly
aging such as: opening up a General store, where
customers are given an opportunity to step back
in time.
Tenants should offer its customers value which
means: good quality (i.e. durable, functional)
products, at fair prices (stores guaranteeing
merchandise and sales that are realistic), selection
(i.e.
availability);
and
service
(i.e.
knowledgeable, helpful sales staff and
willingness to take special orders or to handle
alterations).
PRODUCTS AND RETAIL STORES
Customers are more acute in discovering and exploring
unique goods
x
Consumers like resort guests, are typically willing to
pay often 10% to 15% more on convenience goods
x
The Outdoors Look in both Women’s and Women’s
Casual Apparel Continues to be on the Rise
x
Home Furnishing sales are on the rise in most western
Canadian urban markets
x
Increasing emphasizes on activity, spending time
socializing, personal health, well being and longevity
x
Retail Strategy
Unique goods that reflect the surrounding
environment such as: hand crafted art work,
paintings, home furnishings and accessories and
other souvenirs.
There will be a need to provide additional
convenience goods or basic food items that
visitors will typically need, during their outdoor
outing, preventing them from leaving the District
and purchasing those items at Whistler or
elsewhere.
In order to tap into this lucrative market it should
be expected that items such as: gortex jackets,
fleece wear, sweaters and other outdoor
accessories should be provided at the plaza
As the number of condos increase at Squamish,
this will trigger an opportunity to offer trendy
furniture, or housewares that reflects the natural
environment for customers who want to make a
statement in their homes.
Resort guests want to have fun in a healthy and
entertaining environment
2-23
SHOPPING AND ENTERTAINMENT
Practice areas to try out merchandise are becoming
increasingly integrated in retail stores in the US and
Canada
Theming can embellish a village, as well as increase
sales, and offer visitors an enhanced retailing experience
x
There are new ways of operating Restaurants to counter
seasonal changes of demand.
x
Bringing the ‘Outside into the Inside’ has become a
popular trend among retail stores in North America.
x
x
Allow customers to test equipment or accessories
before they buy - some of this may be practical at
Squamish.
Authentic themes revolving around the overall
theme of the 'Outdoor Recreation Capital of
Canada' will provide a lot of flexibility and fun
for individual retailers at District of Squamish.
Offer restaurants in the plaza that can transform
themselves throughout the day from a coffee
shop, to a luncheon bistro, to a white-tablecloth
restaurant.
Animating the downtown and future waterfront
area with appropraite tenants, place making, etc.
holds significant potential to reinforce the
outdoor recreation experience.
TRENDS OF THE FUTURE
Health enhancement services has and will continue to be
a mainstream trend, especially among the Baby-Boomers
x
‘Going Green’ Retail Stores will become more appealing,
more particularly to the ‘Generation Y’ audience
x
Store-within-a store is becoming a popular concept
among retailers
x
There will be a strong market to offer day spas,
masseurs, beauty treatment centers and other
personal services.
Opening up an environmental themed store or
partnership with conservation groups may hold
potential.
Some larger interlinked stores and venues should
be considered to act as anchors for the village
2.9 SUMMARY
Overall the success of the District of Squamish will be highly dependent on the way it presents
itself to visitors and customers. Theming the retail, albeit carefully and suddenly (not contrived)
is essential in order to offer visitors an added experience, as well as generating higher sales and
profits. Provincial tourism statistics have indicated that there is a strong demand among tourists
for shopping attraction (second most popular activity) in the region. Therefore, it is vital in
designing the downtown and nearby waterfront as a kind of ‘stage’ and allowing tenants to
display their items in a playful way in order to capture the customers’ attention, and more
significantly their imagination.
The overall theme of these areas that reflects the Sea to Sky region will provide a lot of
flexibility and fun for individual retailers within the District of Squamish. Moreover, animating
the waterfront with exciting tenants holds significant potential to reinforce the Sea to Sky
outdoor experience for visitors.
Apart from the theme, retailers in North America have begun to experiment with innovative
ways of retailing to enhance the experience of their visitors, such as appealing to consumer’s five
senses in their retail offerings.
To summarise some of the products and retail store types that are increasingly demanded by the
new millennium consumer, Table 2.2 highlights the key consumer products and trends that are
affecting retail in the next decade.
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Table 2.2 - Key Retail Practices and Trends
What’s Hot
What’s Not
Consumers
Optimistic Consumers
Cautious Shoppers
Personalized, idiosyncrasy items
Traditional, bulk goods
Recreation, Leisure and Personal Health
Watch TV
Shop till you drop
Small Indulgences, Self-gratifying gifts
Monolithic, banal goods
Products and Services
Highly targeted specialty stores
Unfocused Ma and Pa operators
Book stores with coffee bars
Conspicuous consumption
Home fashions and functional art / furnishings
Men’s suits
Self service access & interactive retailing or try before
one buys
Locked up display cases
Value driven & entertainment merchandising
Offering everything to everybody
Career casual apparel / Outdoor look
Furs
Everyday low prices
Designer chic
Customer service
Sales hype
Knowing your market
Untrained sales staff
Shop till you drop
Shopping and Entertainment
Retail facilities designed with a theme
Monolithic designed retail stores
Restaurants that comes with an experience
Traditional restaurants with no added features
Outside into the Inside
Sterile interiors
Relaxation Retail
Busy, crowded, uncomfortable retail stores
Integrating Retail and Entertainment
Department Stores
Environmental Themed Stores and Partnerships
Non-‘green’ stores
Store within a store
Discrete retail stores & eateries
Hi-Tech Retail
Antiquated Retail
Source: TREC International Inc, Urban Land Institute, International Council of Shopping Centres, Retail Council of Canada, Tourism BC,
Resort Forum, International Spa Association, and other sources as identified in the report.
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3.0 SQUAMISH RETAIL ASSESSMENT
3.1 INTRODUCTION
Overall, Squamish has the largest concentration of retail space in the Sea to Sky Corridor and has
become the retail/service centre for the region serving Furry Creek to Lilloett offering a broad
range of retail categories. Until recently, most of the retail space was situated in the Downtown
Core with pockets of retail in the Garibaldi Highlands and neighborhood commercial sprinkled
throughout the various neighbourhoods with much of this retail space locally owned and
operated. More recently, Squamish is experiencing rapid growth in the retail sector as a result of
increased residential construction and increased tourist traffic through the Corridor. As a result
of this growth and future anticipated growth, mass merchandisers and big box retailers such as
Walmart and Home Depot have recently secured locations in Squamish with many others also
considering a location in Squamish. Therefore, the retail trends impacting many communities
across North America are now impacting on the Squamish retail sector.
In the face of this dramatic change, it is essential to develop a profile of the overall retail
inventory in Squamish to determine how this change has re-shaped the local retail sector and
how it will impact the future of retailing in Squamish. Accordingly, this section examines the
retail/commercial infrastructure throughout Squamish. This assessment will culminate in a
matrix that will be valuable to ascertain the merchandising “voids/oversupplies”, functions, and
other opportunities that future retail development in Squamish could fulfil.
3.2 OVERALL DISTRICT OF SQUAMISH ASSESSMENT
In order to completely understand the existing merchandising mix, an assessment of the existing
retail businesses in Squamish was conducted during the months of August through to November
2004. The area examined is illustrated in Figure 3.1 that also outlines the 5 precincts
(Downtown, Garibaldi Highlands, Business Park, Brackendale and Valleycliffe) that make up the
District of Squamish.
The retail and commercial mix that was examined primarily included street level uses. The
majority of the numerous offices in multi-storey buildings were for the most part not included in
our assessment unless they were occupied by uses that were of a retail nature or by uses that
would fall under the category of business and personal services. The following summarises the
most salient findings from this overall retail/commercial and land use assessment:
In total, there is an estimated 880,000 sq. ft of retail/commercial floorspace currently exists
within Squamish with an additional 210,000 sq.ft. planned for the Walmart, Home Depot and the
next phase of Garibaldi Village.
Overall, there are approximately 325 merchants in Squamish.
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3-1
Figure 3.1
Commercial Precincts in Squamish
BRACKENDALE
GARIBALDI
HIGHLANDS
BUSINESS
PARK
VALLEYCLIFFE
DOWNTOWN
Retail Strategy
3-2
There are an estimated 28 vacant properties (existing or planned) properties within Squamish
totalling 132,000 sq.ft. Of this vacant space, approximately 57,000 sq.ft.(5% vacancy rate) is
existing inventory with the bulk of this space (41,000 sq.ft.) situated in the Downtown core.
Approximately 75,000 sq.ft. (7% vacancy rate) of the vacant space is in the late planning/early
construction phase with the bulk of this space (62,000 sq.ft.) situated in the Garibaldi Highlands.
Currently, the largest existing space available for sale or lease is 6,000 sq.ft. (Former True Valu
space) The potential for larger available space exists at the second phase of Garibaldi Village,
however, it will not be available for occupancy until the fall of 2006. Therefore, there currently
is not any space available for immediate occupancy for uses requiring over 7,000 sq.ft. . It is
also important to note that the average size of the international retailers in Squamish is almost
10,000 sq.ft.
As summarised in Table 3.1, the largest retail/commercial category will soon be homebuilding
supplies (149,000 sq.ft.) once the Home Depot is complete in 2005. At that time, this category
will occupy 14% of the total retail/commercial floorspace.
This will be closely followed by restaurants and cafes which represent approximately 139,000
sq. ft. of floorspace or an estimated 13% of the overall retail/commercial floorspace in Squamish.
Automotive sales, parts and repairs and food are the next largest retail/commercial categories
representing 12% and 11%, respectively, of the total Squamish floorspace.
Household furnishings and equipment and home entertainment and equipment and services only
account for 5% of the total floorspace.
Of the total occupied (inc. Walmart/Home Depot) retail space in Squamish, locally owned and
operated operations were the largest segment and accounted for approximately 463,500 sq.ft.
(48%) followed by international retailers at 225,600 sq.ft. (24%), regional chains at 136,900
sq.ft. (14%) and national chains at 132,500 sq.ft. (14%).
The international retailers, however, occupied the largest retail units on average at 9,800 sq.ft.
followed by national and retail chains at approximately 5,500 sq.ft./unit with locally owned
operations occupying the smallest space at approximately 2,600 sq.ft./unit.
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3-3
Table 3.1 District of Squamish, Commercial Retail Floorspace Inventory By Major Commercial
Precinct (sq. ft.)
RETAIL TYPE
Downtown
Squamish
Brackendale
Garibaldi
Highlands
Valleycliff
Business
Park
Total
%
of Total
Food
64,601
5,243
32,480
4,698
8,625
115,647
11%
Clothing
33,257
0
3,912
0
28,000
65,169
6%
Household Operation
28,731
0
5,650
1,980
22,784
59,145
5%
Household Furnishings &
Equipment
26,808
0
5,500
0
13,867
46,175
4%
3,262
0
0
0
10,000
13,262
1%
19,668
0
8,885
0
14,600
43,153
4%
Home Entertainment Equipment
& Services
Recreation Equipment &
Associated Services
54,284
527
7,306
1,485
2,945
66,546
6%
57,391
400
8,312
1,485
0
67,588
6%
Recreational/Entertainment
Services
36,666
7,079
12,850
0
8,456
65,051
6%
Restaurants & Cafes
77,303
2,484
37,206
4,500
16,982
138,474
13%
9,279
0
17,340
0
122,814
149,433
14%
Home Building & Supplies
40,082
3,618
31,240
0
54,058
128,998
12%
Total Vacant Planned
6,545
0
62,467
0
6,700
75,712
7%
Total Vacant Existing
41,742
0
5,229
0
9,912
56,883
5%
499,617
19,350
238,376
14,148
319,742
1,091,233
100%
46%
2%
22%
1%
29%
Total
% of Total
Source: TREC International Inc., November 2004
3.3 ASSESSMENT BY PRECINCT WITHIN SQUAMISH
As previously mentioned, Figure 3.1 illustrates the 5 major precincts within Squamish –
Downtown, Garibaldi Highlands, Business Park, Brackendale and Valleycliffe.
Table 3.1 also outlines the amount of floorspace by category for each of the 5 precincts as well
as the approximate number of establishments. For each category, it also outlines the proportion
of floorspace it occupies in relation to the overall amount of retail/commercial floorspace
identified for the overall BIA. A few salient findings are outlined as follows:
Downtown Squamish represents the largest precinct in terms of total floorspace with an
estimated 500,000 sq. ft. of retail/commercial floorspace followed by the Business Park with
319,000 sq.ft. (includes Walmart/Home Depot) and Garibaldi Highlands (includes Phase 2 of
Garibaldi Village) accounting for 238,000 sq. ft.
In total, these three main precincts collectively account for an estimated 1,057,735 sq. ft. or 97%
of the total retail/commercial floorspace within Squamish.
The largest retail/commercial categories for each of the 5 precincts are outlined in Table 3.1.
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3-4
Presently, the only big box retailers in Squamish are found in the Business Park (Walmart/Home
Depot) or the Garibaldi Highlands (Canadian Tire).
No retail operation over 10,000sq.ft. exists in the Downtown core other than grocery stores SaveOn Foods and IGA. The largest other retailer Lordo Autoparts at approximately 10,000 sq.ft.
The Downtown core houses most (85%) of the Business and Personal Services in Squamish and
most of the Health and personal services (82%).
Home building supplies are found predominately (82%) in the Business Park.
Virtually all of the expansion into Squamish by regional, national or international chains has
occurred in the Garibaldi Highlands and the Business Park.
3.4 RETAIL/COMMERCIAL IMPLICATIONS
Characteristics
x
x
x
x
x
x
x
Implications
Squamish is comprised of almost 1.1 million sq. ft. of
retail and commercial service floorspace; the largest
single concentration of this type of floorspace in Sea
to Sky Corridor and the only “full service” retail area
in the Corridor
Squamish currently has 56,000 sq.ft. of vacant
existing space. None of the existing available space is
over 7,000 sq.ft. Approximately 76,000 sq.ft. of
vacant space is in the planning/construction phase,
most of which is situated in the Garibaldi Highlands.
The majority of the available existing space is older,
lower profile space situated in the Downtown core.
Presently, this space has limited appeal to retailers
from outside of Squamish as a result of its
appearance, the size of available space and the lack of
quality anchor tenant to draw people into the
Downtown.
x
Squamish holds potential to strengthen its role as the only
“full service” retail area in the Sea to Sky corridor and to
become a true multi-faceted regional town centre for
regional residents and tourists alike.
x
Home building and supplies will be the largest
category upon the completion of the Walmart and
Home Depot.
Business and personal services,
restaurants and cafes, auto parts and service and food
categories are also dominant categories.
x
The Downtown, Garibaldi Highlands and the
Business Park account for 97% of the retail floorspace
in Squamish.
All recent growth has been a result of regional,
national and international retailers moving into the
market in high profile locations along Hwy.99.
The Downtown is the largest precinct but has not seen
any growth in years. Limited future opportunities in
other precincts plus Waterfront, Block R and Interfor
developments Downtown show promise for the
future.
x
Squamish currently has no space available ready to move
into that is large enough to accommodate most
international chains.
Squamish currently has a limited supply of existing space
that is available and ready to move into that has the type
of exposure and appeal that larger mass merchandisers
seek.
The upcoming waterfront and Adventure Centre
developments should provide the Downtown with the
opportunity to draw residents and tourists into the
Downtown core.
The Downtown core needs to be updated (appearance)
and adapted (size of space) to attract larger regional to
international retailers and factory outlets.
Squamish is the only area in the Corridor where all
categories are represented.
The retail/merchandising mix also has potential to change
even further as Squamish’s residential population grows
(more home furnishings) and the income of its residents
increases (more higher-end specialty stores)
The three main precincts have different roles and
functions to different types of consumers and have
segmented themselves along these lines – Downtown
(Business and personal services), Garibaldi Highlands
(General retail area), Business Park (Big Box and home
supplies).
The Downtown needs to re-position itself because it is
not attracting any range of retail growth under its current
orientation other than local operations.
Fortunately, Squamish has a rare opportunity to recreate
a retail/entertainment experience in Downtown Squamish
that would be truly unique for Western Canada and
Retail Strategy
x
x
x
x
x
x
3-5
Characteristics
x
x
x
Implications
Generally, there is currently a limited diversity of
Cultural, Arts, Recreation, Entertainment, Education,
and Sports (CARES) uses within the District.
Many of the CARES facilities predominantly cater to
District residents.
Proposed referendum on construction of major
CARES projects is expected.
x
x
x
x
x
The market position for Squamish’s current
merchandising mix is predominantly low-medium
income featuring traditional, somewhat contemporary,
and few avante garde stores. Squamish, however, is
expected to attract a significant amount if new
residents, likely higher earning residents and become
more of an outright tourist destination in upcoming
years.
x
establish Squamish as a true tourist destination unto
itself. As identified in Section 2, this represents a
dominant trend facing the shopping centre industry,
downtowns and destination resort towns.
There is an opportunity to incorporate additional and/or
different CARES facilities into Squamish.
The recreation category appears to be well-supplied,
albeit under organized and lacking in long-term certainty
and amenities. The education (experience) potential for
the area is immense with its spectacular natural setting
and rich logging/marine/First Nations heritage.
These hold potential to draw both regional residents, daytrippers from the Lower Mainland as well as tourists.
The new CARES facilities proposed in the upcoming
referendum should be located Downtown and on the
waterfront, if possible, to provide anchors to attract both
residents and tourists into the Downtown.
There appears to be an opportunity to supplement this
market position with more moderate-moderately high
income and contemporary, avarde garde/eclectic mix of
stores.
3.5 SUMMARY
The Squamish retail market has grown and changed dramatically in recent years. As recent as
five years ago much of the retail in Squamish was locally owned and operated and situated
downtown. However, retailing trends impacting on the rest of North America have hit Squamish
with regional, national and international retailers securing new locations along Hwy.99 and
expanding Squamish’s retail base further into the Garibaldi Highlands and Business Park. In the
process Squamish has grown from a localized retail centre into the largest retail centre in the Sea
to Sky Corridor servicing local Squamish residents, other Corridor residents (Whistler, Furry
Creek and Pemberton) and tourists to the Sea to Sky Corridor. Therefore, a blueprint for the
future is more critical than ever.
Recent growth has been largely from regional to international retailers from outside of Squamish
and they have located in high-profile locations along Hwy. 99 away from the previous retail
centre – the Downtown. The Business Park has clearly become the “big-box district” and
Garibaldi Village has definite appeal to tourists, regional residents and residents from north parts
of Squamish. Over the recent past, the Vision and ‘role and function’ of Downtown has not been
as clear. Once the focal point for retail in Squamish, it has seen no retail growth (actually a
decline) in many categories outside of business and personal services or health care.
All of the retail categories are represented in the Squamish market making it the only full-service
centre in the Sea to Sky Corridor. Squamish also holds potential to strengthen its “full service”
role and to become a true multi-faceted regional town centre for regional residents and tourists
alike. To achieve this, Squamish will need to continue to offer a wide mix of retail and service
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3-6
choices from local operators to international retailers. A revitalized Downtown and other areas
of Squamish not situated on the highway will play key roles in offering local retailers future
growth opportunities as the more visible highway opportunities are being secured by larger
regional to international retailers.
Overall, the market position for the majority of the retail/commercial mix can generally be
described as currently catering to a lower-middle income market with a mix of traditional and
somewhat contemporary and few avante garde stores. Interestingly, the emergence of the larger
format retailers has put new competitive pressures on existing retailers and each new larger
retailer can have a dramatic effect on a particular retail category. As Squamish continues to
grow and appeal to broader range of residents (higher income) and it grows its reputation as a
tourist destination unto itself, an opportunity for a select group of higher-end retailers and local
specialty shops will also be available.
Updating the appearance of the Downtown adapting the existing spaces to enable larger retailers
would make Squamish more appealing to these high-end retailers/specialty shops as well make
the Downtown more appealing to larger regional to international retailers and factory outlets.
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3-7
4.0 ASSESSMENT OF COMPETITIVE
INFRASTRUCTURE
4.1 INTRODUCTION
Squamish experiences a considerable amount of outshopping to surrounding communities such
as West Vancouver, North Vancouver, the Greater Vancouver region and Whistler, which
provides a considerable threat to Squamish retailers. Therefore, to identify an appropriate retail
strategy for Squamish, it is essential to identify and assess the competitive strength of the retail
space in competing locations and to identify the merchandizing mix prevailing in those locations.
An integral component of this section also includes an assessment of other non retail/service
commercial uses (e.g. cultural, arts, recreation, educational, entertainment, sports (CARES),
tourism, office facilities) that may hold potential to round out the appeal of Squamish to both
residents and tourist markets. Similar to the previous section, this assessment will culminate in a
matrix that will be valuable to ascertain the merchandising voids, functions, and other
opportunities that Squamish could fulfil.
4.2 EXISTING CENTRES
The shopping centres and districts that compete with the Squamish and regional market are those
situated in Whistler, Pemberton, West Vancouver, North Vancouver and the Greater Vancouver
region. Of these competing centres, only Whistler and Pemberton are situated in the immediate
trade area. Given the significant amount of outshopping experienced in the Squamish market,
however, the existing retail infrastructure in areas like West Vancouver and North Vancouver
also need to be examined. In addition, local and regional residents (i.e Sea to Sky residents) also
patronise the many big box stores, warehouse clubs, auto dealerships, entertainment/retail areas
such as Yaletown, and Granville Island, as well as other regional shopping centers, to a lessor
extent, that are located in the Greater Vancouver region.
THE TRADE AREA
Whistler
Whistler’s retail infrastructure consists of three distinct villages - Main Village, Whistler
Marketplace, Blackcomb and Creekside Villages – each offering a unique retail experience
unlike any other found in most communities in North America. Of these, the Main Village is
expected to provide a significant impact on the merchandizing mix in Squamish. The Main
Village offers numerous brand name retail (GAP, Eddie Bauer, Roots, Helly Hanson, etc.) and
entertainment options (fine dining, night life) not available elsewhere in the Sea to Sky Corridor.
Consequently it is the main draw for brand conscious tourists to Whistler as well as brand
conscious or higher-income residents from the entire trade area, including Squamish. In
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4-1
addition, strong medium sized mass merchandisers such as London Drugs are also looking at
entering the Whistler area, which holds potential to increase Whistler’s draw from Squamish.
Whistler Marketplace offers a supermarket and restaurants that provide mainly convenience
items to tourists and local residents of Whistler plus some specialty stores. To a certain extent, it
draws residents from communities north and immediately south of Whistler (Pinecrest/Black
Tusk) but is not expected to have much drawing power for Squamish residents.
Blackcomb and Creekside Villages offer an even smaller array of choices than the other Whistler
areas. The restaurants, cafes and specialty stores have their most appeal to tourists staying
within their respective villages and to those residents from the immediate surrounding areas.
Their appeal to residents outside of Whistler is limited.
Pemberton
Pemberton’s retail infrastructure generally provides for the day-to day needs of its local
residents. Thus the tenant mix is predominantly comprised of supermarkets, convenience goods
(i.e. drugs and sundries) and personal services. A small amount of highway commercial (fast
food, gas) exists on Hwy. 99 to cater to the needs of the travelling public. Although tourist
oriented retail is virtually non-existent, an examination of how communities in the Vail Valley
have evolved reveals that both Pemberton and Mt Curry holds significant potential to also
embrace tourist based retailing. Overall, these developments are not expected to exert a strong
immediate influence on Squamish’s retail mix.
OUTSIDE THE TRADE AREA
West Vancouver
Although outside of Squamish’s immediate trade area, Park Royal Mall in West Vancouver
provides significant direct competition to the Squamish marketplace. Anchored by national
department store chains (Bay), supermarkets (Super Valu & Whole Foods), and large retailers
(London Drugs, Future Shop, Winners, The Brick), Park Royal offers a tremendously wider
selection of brand-name apparel (Gap, Roots, Eddie Bauer), home electronics, home furnishings
and other department store merchandise than that found in Squamish. Consequently, Park Royal
has been a prime recipient of Squamish’s outshopping especially for mid to higher-end retail
offerings. Park Royal also offers the closest indoor shopping experience to Squamish. The new
Villages at Park Royal offer a “shopping experience” with its unique, pedestrian nautical themed
design, cutting edge retailers (Whole Foods, Lululemon), brand name clothing (Old Navy,
Lululemon), specialty stores and home “renovation” offerings (Home Depot, Home Outfitters,
Urban Barn and Michaels Crafts). Therefore the Villages offer a unique experience not available
in Squamish, and retail selections that appeal to Squamish’s growing mid-upper income earners
and health conscious residents.
Capilano Mall is a regional centre in North Vancouver that also is a recipient of Squamish
outshopping. Anchored by Walmart and Sears, this mall appeals to Squamish residents seeking a
wider selection and lower prices for department store merchandise currently unavailable in
Squamish or Park Royal. The new Walmart store in Squamish will serve to significantly reduce
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4-2
the competitive impact of Capilano Mall. Squamish residents have the option of the local Sears
Catalogue store and the remaining stores at Capilano mall appeal more to the local residents of
North Vancouver.
The key findings from this assessment include:
To reduce outshopping to neighbouring communities such as the Greater Vancouver region and
Whistler, Squamish needs to continue to increase the amount of selection and more competitive
pricing offered in these areas. Also, to increase the appeal to tourists visiting the Sea to Sky
Corridor Squamish will need to provide a unique shopping experience.
Shopping venues such as Park Royal, Capilano, warehouse stores and other big boxes situated in
the Greater Vancouver region offer a much wider variety of shopping experience than Squamish
could likely ever offer given its size, therefore, some outshopping is likely to continue.
However, upcoming developments in Squamish for Walmart, Home Depot and the proposed
Factory Outlets will significantly reduce the amount of outshopping because they will reduce the
amount of retail spending at these same retailers in the Greater Vancouver region.
The Villages at Park Royal provides cutting edge retailers (Whole Foods) and a unique retail
experience (open air pedestrian experience with a nautical themed design), which should
continue to prove attractive to mid to higher income residents until a similar opportunity is
available in Squamish.
Whistler’s Main Village provides a competitive threat for Squamish retailers as a result of the
numerous brand name retailers, first class restaurants and clubs and unique resort experience.
While Whistler has a significant advantage in competing for tourists, it is possible to attract some
of the tourists by also offering brand-name goods at lower prices possibly through factory
outlets, either in the proposed Business Park location, or in the Downtown core. An eclectic
array of unique, ‘one-of-kind’ shops also holds potential to draw tourists off the highway into the
downtown core and waterfront area.
Squamish’s future oceanfront development and redevelopment potential in Downtown offers
Squamish the opportunity to compete more directly with Whistler and the Villages at Park Royal
for both tourists and residents from the trade area. The oceanfront development offers Squamish
the potential to create a truly unique retail experience that could both attract tourists to the Sea to
Sky Corridor and enable Squamish to capture a greater share of the tourists along the Sea to Sky
Corridor. The Downtown core could also be redeveloped to provide an even more attractive
environment to that found in destinations such as the Villages at Park Royal, Fort Langley,
Steveston and other shopping/entertainment destinations. In both cases, offering brand name
goods through factory outlets sprinkled throughout the waterfront and Downtown may be a way
to effectively attract both tourists and local residents who otherwise are inclined to purchase
these products outside Squamish.
The new Walmart will effectively eliminate the competitive impact of Capilano Mall in North
Vancouver.
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4-3
4.3 FUTURE DEVELOPMENT
COMPETING RETAIL OUTSIDE OF SQUAMISH
The Britannia Project at Britannia Beach just south of Squamish will provide a significant
competitive threat to Squamish’s retail market, especially tourist oriented retail. This project
will result in the transformation of the existing Britannia Mining Museum into a major
international tourist destination. and current preliminary plans reveal an estimated 100,000 sq.ft.
of retail space may be incorporated as part of a planned village. This retail space will be focused
towards serving the needs of the tourists visiting the Mining Museum, tourists visiting the Sea to
Sky Corridor and to residents of the burgeoning Britannia community. It is also important to
note that the Britannia Project has an advantageous location over Squamish in the sense that it is
located further south on Hwy. 99 and will intercept inbound tourist traffic before it reaches
Squamish. Therefore, to diminish the competitive threat of this project, it is important for
Squamish to seek out ways to partner with this development to ensure that it is complimentary to
Squamish’s waterfront development rather than competing directly for the same tourists.
Squamish also needs to move forward as soon as possible on its waterfront development to
position itself for such discussions.
A preliminary review of the remainder of the Sea to Sky Corridor from Whistler to Horseshoe
Bay does not uncover any other planned major retail developments. The bulk of the land outside
of Squamish is unsurveyed Crown Land with the main exception of Furry Creek, Lion’s Bay and
Porteau Cove. At this point no plans have been announced that would include significant
concentrations of commercial space in either these lands nor the First Nation lands in the
corridor. Furry Creek has no plans for any commercial development other than possibly a
neighbourhood commercial node. Lion’s Bay is not seeking any new commercial development
within its boundaries. The upcoming development at Porteau Cove is too early in the planning
process to determine if any competitive commercial space will be developed. All of these
situations, however, must be monitored as many developers are eying the Sea to Sky Corridor
and could pursue commercial development in the future.
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4-4
Table 4.1: Sea to Sky Corridor - Competitive Shopping Centres & Districts
LOCATION
TRADE AREA
Whistler Village (Main)
(Existing)
Britannia Project
(Planned)
APPEAL
SQUAMISH RESIDENTS/TOURISTS TO SEA TO SKY CORRIDOR
Wide selection of brand-name retailers
(Gap, Eddie Bauer, Guess, Levi Store, Helly Hansen)
Wide selection of first-class restaurants and clubs
Unique shopping experience (resort location, international flavour)
First Major Commercial Development on Sea to Sky Corridor from south
Unique shopping experience
Major tourist attraction on site
$$
Mid to High
tbd
OUTSIDE TRADE AREA
Park Royal – North/South
Villages at Park Royal
Capilano Mall
Wide selection of shopping:
Brand name retailers (Gap, Roots, Eddie Bauer)
Department store merchandise (Bay)
Big Box Retailers (Future Shop, Winners,Brick, Sport Chek)
Indoor shopping
Cutting edge retailers
(Whole Foods, Whole Home Experience, Lululemon)
Home building and supplies and furnishings node
(Home Depot, Home Outfitters, Urban Barn, Specialty stores)
Unique Shopping Experience (Themed Design)
Wide selection of Department store merchandise
(Walmart, Sears)
Mid to High
Mid to High
Low to Mid
Source:.TREC International, 2004
Draft Retail Strategy For Squamish
- TREC International Inc.
4-5
PLANNED RETAIL/ENTERTAINMENT DEVELOPMENTS IN SQUAMISH
As shown above, Squamish has undergone a significant retail transformation in recent years
beginning with regional, national and international mass merchandisers descending on Squamish
for the first time to take a major role in the retail landscape. Squamish is expected to undergo a
further transformation in upcoming years as much of its future retail/entertainment growth is
expected to centre around the Downtown Waterfront (Nexen Lands, Interfor Properties, Logger’s
Lane). Also several large projects are planned for the District (and nearby Britannia Beach) that
will have a significant impact on the fabric of Squamish and ultimately its retail landscape
including the new Sea to Sky Adventure Centre, Sea to Sky University, proposed Garibaldi at
Squamish Ski and Golf Resort, expansion of Capilano College, the Britannia Project and the
planned redevelopment of the Logger’s Sports Grounds into an entertainment complex. The list
is also expected to grow as many other projects on the drawing board reach the public domain.
Although further mass merchandise developments are expected in the Business Park and
Garibaldi Village area and additional neighborhood commercial nodes are planned in upcoming
residential developments in Squamish, the Downtown will be the major focus of future
retail/entertainment growth.
DIRECT DEVELOPMENT
Squamish Oceanfront
The District of Squamish recently acquired 90 acres of waterfront
land giving the District its first direct access on Squamish’s
waterfront for residential/commercial development. This property
offers the District the opportunity to create a truly unique
residential/commercial development for Western Canada – one
that is both a neighborhood unto itself, yet will attract regional
daytrippers
as
well
as
destination
tourists.
A
destination/convention hotel, marina, restaurants, entertainment
venues, retail space, parks and a large residential development are
envisioned. The property is in the early planning stages but a CEO
for the corporation is expected to be announced in the early 2005
with an aggressive path towards developing the property as
quickly as possible will be pursued thereafter. When the
development begins, this property will provide an unparalleled
catalyst for transformation of Downtown Squamish.
Interfor Site
An approximate 50 acre waterfront site previously operated by
Interfor will soon be purchased by a development group for
redevelopment from the property’s current uses as a mill.
Although it is too early to determine the development plan for the
property, it is anticipated that the property has the potential to
become a mixed-use residential/commercial/entertainment
development. This development is expected to exert a major
influence on the market given its size and the ability to develop on
both Hwy. 99 and the Blind Channel waterfront. As a result, retail
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4-6
that can appeal to both tourists and local residents is expected.
Business Park Big Box
Three major developments are currently planned for the Business
Park that will have a major impact on the retail market. The
Walmart (86,000 sq.ft.) and Home Depot (75,000 sq.ft.) are
currently well into the planning process and have already been
added into the retail inventory calculations used in this report. A
third project – the Factory Outlet – is also in the planning stages
and is anticipated to be 106,000 sq.ft. when completed. Should the
Factory Outlet also move forward, it will (like Home Depot and
Walmart), effectively re-shape the dynamic of a retail category on
its own – in this case the fashion and potentially the home
furnishings category – with over 108,000 sq.ft. of brand name
outlets including possibly Mexx, Guess, Aldo, Bowrings, Tommy
Hilfiger, Nike).
Garibaldi Village Phase 2
It is also worth noting that the second phase of Garibaldi Village
(approx. 44,000 sq.ft) has also been added into the existing retail
inventory under the “Vacant Planned” category. This next phase
is expected to build on the first phase and attract more regional,
national and international retailers to the north end of Squamish.
This is also expected to appeal to brand-oriented local and regional
residents as well as tourists.
Britannia Project
The Britannia Project is not located within the District of
Squamish, but this development will have an impact on the
Squamish retail market. This multi-million dollar redevelopment
of the Britannia Mines site is expected to become a world-class
tourist destination with preliminary plans including a major
mining interpretive centre and up to 100,000 sq.ft. of
retail/restaurant space. This development needs to be considered
in the future development of retail in Squamish, both in terms of
its ability to draw more tourists to the area and the competition it
could provide for other tourist-oriented retail development in
Squamish.
INDIRECT DEVELOPMENT
Neighborhood
Commercial throughout
Squamish and Residential
Wave
Retail Strategy
A tremendous wave of residential development planned for
Squamish will impact the retail market in two ways. First, the
retail developments will have their own small retail areas to serve
the convenience needs of the residents of the respective
developments. Perhaps, more importantly, they offer the potential
to increase the population in a dramatic fashion. Over 3,600
residential units are currently in the planning process (OCP
amendments/rezoning/subdivision applications) and more
proposed developments are expected in the next two years.
4-7
Mega Projects and other
projects
Four new projects underway or on the drawing board are expected
to impact on the types of people moving to Squamish or visiting
Squamish and ultimately the merchandizing mix in the area.
Others are also on the drawing board that will provide even further
impact if pursued.
These projects include:
Sea to Sky Adventure Centre
This District led initiative will provide a focal point for the
outdoor recreation community in Squamish and create an
opportunity to truly capitlize on this growing segment of the
Squamish economy. Squamish currently offers one of the widest
array of outdoor recreational opportunities in North America. This
state of the art facility will provide a greater opportunity for this
sector of the economy to organize itself and present itself to the
numerous tourists visiting the Sea to Sky Corridor.
Sea to Sky University
The opening of the University will put Squamish in exclusive
company as a “university town” and it is will on its way to
opening its doors to students from around the world including the
faculty and administrative staff that will be required to support it.
The first phase of residential development is also expected later
next year. All of these factors will combine to help create the
potential for higher-income retail uses not presently found in
Squamish.
Capilano College Expansion
Capilano College is also looking to expand its campus in
Squamish. Although no residential development is attached to this
development, it will also impact the Squamish economy in similar
ways as the Sea to Sky University.
Garibaldi at Squamish
The proposed Garibaldi at Squamish has been on the drawing
board for many years but appears to be moving closer to becoming
a reality. The proponents for the development are actively
negotiating with First Nations groups and if they are successful,
will move forward towards developing this four seasons ski and
golf resort. This development when complete will likely include a
major ski hill, golf course (s), hotel accommodations, retail and a
significant residential community. Much like the Sea to Sky
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4-8
University, this development could significantly change the socio
economic make up of Squamish and ultimately its retail sector.
4.4 OVERVIEW OF MAJOR CULTURAL, ARTS, RECREATION,
EDUCATION & ENTERTAINMENT (CARES) FACILITIES
An inventory of the major Cultural, Arts, Recreation, Entertainment, Education & Sports
(CARES) facilities within the Squamish area suggests that Squamish has unparalleled recreation
infrastructure and the potential exists to significantly enhance its infrastructure in the cultural,
arts, education, entertainment and sports areas. Squamish also is uniquely positioned to
successfully blend several categories to create opportunities for tourists and residents typically
not available in most jurisdictions.
The major CARES facilities that have or expected to have a regional draw can be summarized as
follows:
Cultural
Royal Canadian Legion
Tantalus Seniors Centre
Totem Hall
Numerous community events (Logger’s Sports Days, Test of Metal &
Gearjammer Mountain Bike Races, sports tournaments, bed races, Wild @
Art, Farmer’s Market)
Arts
Between Shifts Theatre Group
Newport Art Gallery
Brackendale Art Gallery
Recreational
Top rated Rock Climbing and hiking on Stawamus Chief
Top rated Windsurfing at Squamish Spit
Top rated Mountain Biking Network
Top rated Whitewater Kayaking
High-alpine hiking, snowshoeing, camping in Garibaldi Provincial Park
Squamish Estuary (Wildlife area)
Alice Lake, Garibaldi, Stawamus Chief and Murrin Lake Provincial Parks
(and camping)
Dryden Creek, Klahanie and Paradise Valley Campgrounds
Squamish Valley Golf & Country Club
Garibaldi Springs Golf Resort Horse Riding
Snowmobiling
Fishing
Eagle & Wildlife Viweing
Brennan Park Leisure Centre (ice rink, swimming pool, soccer fields,
baseball diamonds, skateboard park)
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4-9
Educational
Entertainment
Squamish Library
Capilano College
Easter Seals Camp
Evans Lake Outdoor School
North Vancouver Outdoor School
Sea to Sky University (Planned)
Camp Summit Children’s Camp
Britannia Mining Museum
Canadian Outback Adventure Co. (whitewater rafting)
Garibaldi 5 Cinemas
Glacier Air Tours/Black Tusk Helicopters
Logger’s Sports Grounds
West Coast Railway Museum
Squamish’s population will continue to grow as the Sea to Sky Highway expansion will bring a
broader range of new residents to Squamish including higher-income earners, young families,
outdoor recreationalists and retirees from the Lower Mainland. This growth will create the need
to expand the CARES infrastructure on all fronts. A recent announcement by the District of
Squamish that it is considering borrowing approximately $20 million to complete a variety of
CARES type projects including an ARTS Centre, Public Market facility, expansion of the
existing leisure centre will significantly upgrade the CARES resources of this community both
for residents and tourists.
Squamish’s tourist traffic will increase with highway expansion and the anticipation of the
Winter 2010 Olympics creating an interesting opportunity for Squamish. The spectacular
outdoor setting and abundance of outdoor recreation infrastructure creates the opportunity to
merge CARES categories in Squamish perhaps more than anywhere else. For example a guided
and informative cycling tour can combine recreation, education and entertainment all in one
activity. The new Sea to Sky Adventure Centre will help facilitate this type of “packaging” and
can be used to significantly enhance the use of the existing outdoor recreation infrastructure.
Consequently, it is important to Squamish that the long-term viability of its outdoor recreation
infrastructure be pursued as much of these activities take place on unsecured Crown Lands or
private lands facing development. There is also considerable potential to upgrade the amenities
available to outdoor recreationalists when participating in these activities.
4.5 SUMMARY
As mentioned much of the new growth has been from retailers from outside of Squamish which
has considerably broadened the merchandise mix to include more brand name products
(Intrawest Outlet) and big box merchandise (Walmart, Home Depot). This is expected to help
decrease the amount of outflow of retail dollars that local residents currently spend outside the
community which has been identified as a major issue for Squamish retailers in the past. To
further reduce the outflow impact Squamish needs to offer unique shopping experiences afforded
by the Villages at Park Royal (cutting edge retailers) or Whistler Village (resort experience).
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4-10
Looking ahead the Squamish retail market faces several challenges and opportunities. On the
opportunities side, the upcoming oceanfront development on the former Nexen Lands and
Interfor properties offers Squamish a once in a lifetime opportunity to create a
retail/entertainment experience that is truly unique to Western Canada – an experience that could
make Squamish a world-class tourist destination in its own right as well as make it an even more
desirable place to live.
Fortunately, many market factors are also at play that suggests the Downtown is the logical
choice for the next wave of retail development and that it is well positioned for this wave.
Future retailing trends anticipated over the next 10 years suggests that consumers will be seeking
more of a specialty, experience based shopping experience and the Downtown is the best place in
Squamish for this type of retail. An additional 5,000 residents are also expected to move into
the Downtown core over the next 20 years, which will dramatically increase the population base
in the Downtown. The recent growth of retail in the Garibaldi Highlands and Business Park may
have or could soon reach capacity leaving the Downtown as the only location for the future wave
of retail in Squamish. The recent growth in international and mass-merchandise retailers may
also mean that these categories will soon reach capacity (if not already) in Squamish. Finally, if
recent proposed CARES initiatives are approved by Squamish residents additional cultural and
arts centres will be located in the Downtown core. Therefore, the Downtown could be
redeveloped to provide an even more attractive environment to that found in the Villages at Park
Royal, Fort Langley or Steveston. Offering a unique environment for cutting edge retailers and
factory outlets offering brand named goods may be an effective way to attract both residents and
tourists who are currently spending their retail dollars outside of Squamish.
On the challenges side, if the future growth in retail in Squamish is specialty and heavily
experience oriented, Squamish already faces a tough competitor in Whistler and Park Royal. It
also faces future potential competition from an approximately 100,000 sq.ft. retail/ entertainment
oriented redevelopment of the Britannia Mining Museum. Squamish should seek out ways to
provide complimentary retail, rather than compete directly with this project.
Also, in order to be successful in the future tourist market Squamish will need to create a
retail/entertainment experience that is authentic and unique - an experience that differentiates
Squamish from other parts of the Corridor and capitalizes on the rich heritage (logging, marine,
First Nations) of Squamish and its truly spectacular natural setting. Finally, as the “Outdoor
Recreation Capital of Canada”, Squamish has an outdoor recreation infrastructure that is
unparalleled in North America. Consequently, Squamish can offer unique tourist experiences
that combine cultural, arts, recreational, education, entertainment and sports unlike any other in
North America. Therefore, Squamish needs to work ensure that this infrastructure will remain in
place for the foreseeable future and that amenities are created to enhance the experience of
tourists and further its competitive position as a tourist destination in the Sea to Sky Corridor.
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4-11
5.0 CONSUMER RESEARCH FINDINGS
5.1 INTRODUCTION
Consumer research was conducted using the Point-of-View (POV) Survey System. The POV
system consists of using hand-held survey units to collect market information. Respondents
complete the survey themselves and the unit(s) store the data. The Squamish retail survey was
designed to collect information from three distinct market segments:
1. Regional Residents of the Squamish area (incl. Whistler, Pemberton, Mt. Currie/Darcy,
Lillooet, Britannia Beach)
2. Tourists to the Squamish area (incl. Visitors from Vancouver/Lower Mainland, other
parts of B.C., Canada and internationally)
3. Local Squamish Residents
The survey units were strategically placed in high traffic areas throughout Squamish over the
period from early October through December 6, 2004. In order to make local residents aware of
the survey program and its purpose, advertisements were placed in the Squamish Chief
newspaper. The consultants solicited donations from local businesses to serve as a prize
incentive to complete the entire survey. Respondents were asked to enter their telephone number
into the survey if they wished to be eligible for one of the many prizes to be won.
The main objective of the survey was to determine the shopping patterns, expenditure patterns
and needs of local and regional residents and how the District of Squamish can plan to serve
them. In order to increase the potential offered by the tourist/visitor market, a section of the
survey was allocated to better understanding their needs and characteristics also.
The following section outlines the major findings of the POV consumer survey results in terms
of Visitor Markets (Regional Residents and Tourists) and Squamish Residents. The complete
printout showing the frequency of response for all survey questions is shown in Appendix III at
the back of the report. The applicable survey screen (or question) is referred to in brackets for
reference throughout the text in this section.
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5-1
5.2 SURVEY RESULTS: ORIGIN AND SHOPPING CHARACTERISTICS
A total of 920 completed questionnaires were collected using the POV Survey System. Based on
the 3 market segments identified, the breakdown of respondents is as shown in the table below.
Market Segment
Frequency
%
Regional Residents
59
7%
Tourists
177
19%
Local Residents
684
74%
Total
920
100%
Origin of Survey Respondents
A detailed breakdown of respondents’ area of residence is as shown in the table below.
Market Origin
Frequency
%
Regional Residents
Whistler region
42
5.0%
Pemberton
11
1.0%
Mt. Curry/Darcy
5
0.5%
Lillooet area
1
0.1%
146
16.0%
Other B.C.
8
0.9%
Other Canada
5
0.5%
Other
18
2.0%
684
74%
920
100%
Tourists
Vancouver/Lower Mainland
Local Residents
Greater Squamish area
TOTAL
Regional Residents and Tourists to Squamish
Although the survey was not conducted during the peak tourism and travel season, this market is
clearly important as almost 20% of respondents represented “visitors” to Squamish. For the
purpose of this study, Regional Residents included those from the Whistler region, Pemberton,
Mt. Curry/Darcy and the Lillooet area. Tourists were defined as residing outside Squamish and
the defined Regional area. A sample of 59 Regional Residents and 177 Tourists was collected.
Retail Strategy
5-2
The results of the Regional Resident sample are more limited because of size. Most Regional
Residents were from Whistler and Pemberton. The majority of Tourists (82%) were from the
Vancouver/Lower Mainland area.
Regional Residents and Tourists: Reason for Visiting Squamish
For both Regional Residents and Tourists, the most popular reason for visiting Squamish was a
stop on the way north or south. This was noted by 36% of both sets of respondents. (Screens 5
and 12)
Regional Residents and Tourists: Shopping Patterns in Squamish
Both Regional Residents and Tourists are most likely to shop in Squamish for Groceries – the
proportion doing so is slightly higher for Regional Residents (45%) than Tourists (36%).
Tourists are just as likely to stop for Dining. Clothing, gifts and accessories is the next most
likely category of purchase for Regional Residents. (Screen 6 &13)
Regional Residents and Tourists’ Shopping Patterns in Squamish
Grocery (incl. Liquor)
Clothing/ gifts/ accessories
Services
Dining
Sports and recreation goods
Hardware
Reg. Resident
Tourist
Home furnishings/ appliances
Entertainment
0%
20%
40%
60%
80%
100%
Regional Residents and Tourists: Downtown Squamish
Both visitor segments are aware of Downtown Squamish, with 72% of Tourists and 88% of
Regional Residents saying they have visited the Downtown on a previous occasion. (Screens 7 &
14) At the time of the survey, however, only 42% of Regional Residents and 36% of Tourists
were planning to visit Downtown Squamish. Their reasons for not visiting the area were most
likely to be lack of time.
Retail Strategy
5-3
Regional Residents and Tourists: How to increase visitation to Downtown Squamish
Just over half of the Tourist respondents said they would be most likely to stay longer and
patronize businesses in Downtown Squamish if there were special events, activities and
entertainment going on. Interesting waterfront activities and quality restaurants/cafes could be of
major appeal for 40% of Tourists. (Screen 10)
Regional Residents indicated that improvements to the Downtown such as one-of-a-kind
shopping experiences and interesting waterfront activities would encourage them to stay longer
and patronize businesses in Downtown Squamish. Over half of Regional Resident respondents
said that late night shopping on Thursday and Friday evenings and Factory Outlet stores in the
Downtown would be a further reason for them to spend more time there. (Screens 18, 27 and 28).
Regional Residents: Shopping Patterns in Squamish
Despite a limited sample size (59 respondents) of the Regional Resident market in terms of its
shopping patterns, the next few paragraphs provide useful market indicators. (Screen 12-28 for
more information)
When shopping in the Other Parts of Squamish (Garibaldi Village, Industrial/Business Park,
Brackendale), Regional Residents are most likely to be shopping for Groceries (incl. Liquor).
Most shop in the Distict of Squamish at least once per month.
Regional Residents: The Need for New Shopping Experiences in Squamish
Regional Resident respondents indicate interest in an improved shopping experience in
Squamish but do not make a clear indication of what aspect they think is the priority.
Regional Residents: New Retail and Service
In order to encourage Regional Residents to shop in Squamish more often, suggestions of new
retail and service products were presented in the survey. A “Natural Foods Market/co-op” and a
(permanent) Farmers Market” were rated as the most popular in the Food Service category.
When asked about Comparison Retail, “Clothing and Accessories” were most often requested. In
terms of Other Services, the preferred choice was less obvious but Live Theatre and Attractions
generated some interest.
Squamish Residents
Complete survey responses for Squamish residents are shown in Screens 29-46 of the survey
printout.
The majority of survey respondents came from Squamish (74%). Of those, 72% have lived in the
Squamish region for 5 or more years. As many as 60% work in Downtown Squamish and 17%
own a business somewhere within the region. These characteristics suggest that respondents are
knowledgeable and experienced when it comes to shopping in Squamish. (Screen 2, 29 & 30)
Retail Strategy
5-4
Squamish Residents: Shopping Patterns in Squamish
When asked what type of shopping they are most likely to be doing when shopping in
DOWNTOWN SQUAMISH, the most frequent response of Residents was Grocery shopping
(87%). The second most popular activity noted by 64% of Resident respondents was to utilise
Services (banking, post office, etc.). (Screen 31).
With regard to shopping patterns in all other parts of Squamish (incl. Garibaldi Village,
Industrial/Business Park, Brackendale), Residents again responded that Grocery shopping is their
most frequent type of shopping activity but with lower frequency (67%). Shopping for
Clothing/gifts and accessories was much less likely to occur in the outlying areas, as only 23%
indicated they do so (compared to 50% Downtown). (Screen 32)
Squamish Residents’ Shopping Patterns IN Squamish
Grocery
Services
Dining
Clothing
Hardware
Entertainment
Sports/Rec. goods
Other Squamish
Downtown Squamish
Home Furnishings/appliances
None/Other
0%
Retail Strategy
20%
40%
60%
80%
100%
5-5
Squamish Residents’ Shopping Patterns OUTSIDE Squamish
Clothing
Home furnishing / appliances
Restaurant and Entertainment
Office, computer electronic supplies
Professional Services (health, personal)
Automotive sales/parts/service
Groceries
0
20
40
60
80
100
Squamish Residents: Shopping Patterns OUTSIDE Squamish
When it comes to shopping outside the District of Squamish, only 33% indicated that they do so
for groceries. The most popular categories were Clothing (85%), followed by Home
furnishings/appliances and Restaurants/entertainment (66%). Selection (80%) and Pricing (71%)
were the reasons most frequently identified by respondents. (Screen 33 &34)
As many as 88% of local Resident respondents said they shop outside the District of Squamish
once per month or more. Seventy six percent of Squamish resident respondents estimated that
they spent 40% or less of their annual household expenditures on Retail, Dining and
Entertainment purchases outside the District of Squamish (Screen 35 & 36). As outlined in
Appendix III, almost 22% of the local Squamish residents spend less than 10% of their annual
household spending on the above three categories while 30.4% spend between 11-25% on these
categories and almost 24% spend between 26 – 40% of their annual household spending on
Retail, Dining and Entertainment purchases outside the District of Squamish.
Squamish Residents: The Need for New Shopping Experiences in Squamish
When asked what priorities the District of Squamish should undertake to improve its retail,
dining and entertainment mix, the three most popular responses from Squamish residents were:
x Generate a wider selection of retailers (71%);
x Encourage more competitive pricing (56%); and,
x Improve the quality of goods available (55%).
Retail Strategy
5-6
(See Screen 37 for further details.)
Squamish Residents: New Retail and Services
Squamish residents are interested to see all types of new retail and service products in their area.
In the Food Service category, a “Permanent Farmers Market” was the most popular choice
(noted by 48% of respondents). When asked about Comparison Retail, “Clothing and
Accessories” were desired by 83% of respondents. In terms of Other Services, “Attractions and
Live Theatre” were selected most frequently (42% and 38% of respondents respectively). (See
Screens 38-40)
Squamish Residents' Retail and Service Preferences to
reduce their need to shop OUTSIDE of Squamish
Clothing and accessories
Farmers market (permanent)
Home furnishing / appliances
Toys, games and hobbies
Computers / electronics
Attractions
Gifts
Live Theatre
Office supplies
0
20
40
60
80
100
Series1
Squamish Residents: Opinions and Priorities regarding Commercial Development in
Squamish
Squamish residents identified the revitalization of the Downtown as their most important
development priority. (Screen 42)
Development Priorities
%
Revitalize Downtown with original retail, restaurants and entertainment
62%
Tastefully integrate some "big box" retail INTO Downtown
40%
Segregate any "big box" development AWAY from Downtown
28%
Stimulate Downtown with factory outlets
23%
Do not permit any commercial development which negatively affects existing
businesses
15%
Do not allow any new commercial development anywhere in Squamish
3%
Retail Strategy
5-7
Squamish Residents: Priority Locations for Commercial Development
The areas of Squamish indicated by Residents as Priority Locations for new Services and
Facilities were as follows:
1.
2.
3.
4.
5.
Downtown (65%);
Waterfront from Bridge to Estuary (46%);
Garibaldi Village area (39%);
Industrial Business Park (33%); and,
Future University Commercial area (18%).
(See Screen 43).
Squamish Residents: How to increase visitation to Downtown Squamish
Half of Squamish resident respondents said they would visit Downtown Squamish more often if
there were interesting waterfront activities (56%); special events, activities and entertainment
(48%). One-of-a-kind shopping experiences (47%), or quality restaurants and cafes (47%).
(Screen 44)
All three respondent groups were asked the question about what would appeal to them and
encourage them to spend more time in Downtown Squamish. The chart below compares the
responses of Tourists, Regional Residents and Squamish residents. Waterfront improvements,
special events, shopping and dining were consistently important.
How to Increase Visitation to Downtown Squamish
Interesting waterfront activities
Special events, activities, entertainment
One-of-a-kind shopping experiences
Quality restaurants/cafes
Aesthetic appeal
Culture and arts
Squamish Resident
Reg. Resident
Tourists
Quality museum or visitor attraction
Unique educational experiences
0%
Retail Strategy
10%
20%
30%
40%
50%
60%
5-8
If more shops were open in Downtown Squamish on Thursday and Friday evenings and/or if
there were some interesting factory outlet stores, 67% of Squamish Resident respondents said
they would patronize the area more often. (Screens 44,45 &46)
The chart below compares the survey question asked of all three respondent groups regarding
their interest in factory outlet stores in Downtown Squamish. The overwhelming response is
positive.
Question: If DOWNTOWN SQUAMISH had some interesting FACTORY OUTLET stores,
would this be a reason for you to spend more time there?
Yes
No
Squamish Resident
Reg. Resident
Tourist
Don’t Know
0%
20%
40%
60%
80%
5.3 DEMOGRAPHIC PROFILE OF SURVEY RESPONDENTS
Slightly more females (60%) than males responded to the survey.
The age breakdown of survey respondents is as shown in the table below. The survey represents
a generally youthful yet mature market, with 78% of respondents aged between 20 and 50 years.
AGE Category
%
19 or under
7%
20 to 29 years
27%
30 to 39 years
27%
40 to 49 years
24%
50 to 64 years
12%
65 years and older
4%
Total
Retail Strategy
100%
5-9
Respondents are earning moderate income levels, with 66% indicating annual household
incomes between $40,000 and $75,000. Just under 30% earn greater than $75,000. For 89%of
respondents the income supports 4 or less people. Families were represented by approximately
30% of respondents. (Screens 47 through 52)
5.4 SUMMARY
Consumer research was conducted using the Point-of-View electronic survey system over a sixweek period between October to early December. Both existing and potential customers were
surveyed and just over 900 completed questionnaires were recorded. The overall response to new
retail development was positive. The survey respondents fell into two categories, which were
regional residents/tourists, and local residents.
Both visitor segments were highly aware of downtown Squamish, but only a small portion of
those respondents were planning to visit the area. Over half of those surveyed said they would
patronize businesses in downtown Squamish if certain activities and new businesses were
developed there. When asked what food service retail would attract both regional and local
respondents, the highest responses, at around 47% were a "Natural Foods Market/co-op" and a
permanent "Farmer's Market." When asked about Comparison Retail, “Clothing and
Accessories” were desired by 83% of Greater Squamish respondents and by 59.3% of regional
residents (those largely Whistler & Pemberton). In terms of Other Services, “Attractions and
Live Theatre” were selected most frequently (42% and 38% of Squamish respondents
respectively) and (27.1% and 36.6% for regional residents, respectively).
Over 74% of the total respondents surveyed lived in the Greater Squamish area. Many of the
respondents visited downtown Squamish for Convenience goods, but preferred to shop for
products such as clothing, home furnishings/appliances, and services such as
restaurants/entertainment outside of Squamish, with selection and pricing being the most
important reasons. Almost 22% of the local Squamish residents spend less than 10% of their
annual household spending on Retail, Dining and Entertainment purchases outside the District of
Squamish while 30.4% spend between 11-25% on these categories and almost 24% spend
between 26 – 40% of their annual household spending on the above three categories outside the
District of Squamish. These same respondents asked for a wider selection of retailers, more
competitive pricing, and improved quality of goods within Squamish. Similar to the visitors, over
half of local residents would spend more time downtown if there were more interesting activities
and businesses. The local residents also felt a permanent Farmer's Market was needed to improve
shopping. Furthermore, if more shops were open in Downtown Squamish on Thursday and
Friday evenings and/or if there were some interesting factory outlet stores, 67% of Squamish
Resident respondents said they would patronize the area more often.
Many similar results were posted by both categories of respondents where only a few them
visited downtown, but both groups of respondents vied for more activities and businesses, which
would attract them to visit more often and stay longer. For example, approximately 56% to
almost 68% of the regional residents/tourists and local residents, respectively, indicated they
would visit downtown Squamish if it had some interesting factory outlet stores.
Retail Strategy
5-10
6.0 TRADE AREA DELINEATION & MARKET
ANALYSIS
6.1 INTRODUCTION
This section briefly highlights the market characteristics for the existing and potential patrons of
the District of Squamish. Generally, there are two main sources of demand for the District of
Squamish: (1) local and regional residents as defined by two trade areas; and (2) tourists,
comprised of both day-trippers and overnight visitors to the Squamish/Lillooet region. The
resident trade areas are based on an analysis of 2001 Statistics Canada Geographic Information
System databases. Trade area characteristics of the District of Squamish are compared to the
provincial average resident to highlight how these residents differ from one another. The tourist
market profiles for the revitalized Downtown Squamish and waterfront area are derived from a
number of regional, provincial and national databases. As cultural tourism is expected to form an
integral market component for the revitalized downtown and waterfront area, profiles of the
cultural visitor and shopper are also highlighted.
6.2 TRADE AREA DELINEATION
The trade area for an area such as the District of Squamish, comprised of both primary and
secondary trade areas, PTA and STA respectively, is generally considered to be that geographic
region from which at least 70% to 85% of shoppers or service users originate. The remaining
15% to 30% of the sales within Downtown Squamish can be expected to come from beyond the
defined boundaries and is considered to be business or tourist “inflow.”
Basically, the definition of the trade area for the District of Squamish takes the following into
consideration:
x The size and major merchandising components of the Downtown Squamish and
surrounding area, including new cultural, arts, recreation, education,
entertainment, and sports (CARES) facilities;
x Unique and specialized products and services that are lacking in other parts of the
geographic area such as medical services that draw residents from a larger region
on a regular basis throughout the year;
x Road network which affects the site accessibility and travel time;
x Major shopping nodes, competitive centres and facilities;
x Size and strength of direct competitors;
x Pattern of residential development, densities and socio-economic differentiation;
x Major natural and man-made boundaries.
Retail Strategy
6-1
While each of these factors has an important influence over the trade area for the subject site, it
is the combined effect of all factors that dictate the trade area coverage. Accordingly, the
following paragraphs define the trade area based on these identified factors.
Prior to defining the trade areas, it is critical that the major merchandising components of the
District of Squamish are defined in relation to the existing and planned shopping centres and
precincts outlined in the previous section. For this purpose, it is assumed that the District of
Squamish will be comprised of the following merchandising themes and components:
x A good selection of strong regional and some national tenants including several
factory outlet stores of a lifestyle nature to provide a significant point of
differentiation to other competitive shopping centres and precincts;
x Retailers operating in the District of Squamish are expected to have a real and
perceived value orientation with respect to the quality, selection, price and
merchandising practices consistent with what today’s consumers demand now and
in the foreseeable future.
x At least three areas within Downtown Squamish will offer the largest selection
within their merchandising categories (e.g. home furniture/accessories; antiques,
arts & crafts/accessories; restaurants/takeout services; natural/holistic/health
products and services) in the Squamish-Lillooet region;
x The largest public market in the Squamish-Lillooet region offering both fresh and
prepared foods from the surrounding areas and elsewhere;
x A unique mix of CARES facilities/services that are not available at any other
community within the central region of the province;
x As mentioned previously, the premise that this report is based on is the North
American trend where retail and cultural/entertainment environments are merging
to provide a more rewarding and fulfilling shopping experience.
Based on these planned components, the District of Squamish’s commercial precints would
occupy a unique niche in the Squamish-Lillooet regional marketplace, in particular, with little
direct competition. Generally, the District of Squamish’s trade areas will draw from two
geographic areas depending on the type of merchandise and services. The Primary Trade Area
(PTA) residents will likely be largely drawn to the District of Squamish for the convenience
items and some basic services oriented while the specialty lifestyle oriented merchandise (i.e.
fashion & access; factory outlets, furnishings/access, etc.) is expected to also attract the
Secondary Trade Area (STA) resident shopper. The public market/CARES component is
anticipated to service both local and regional trade area residents. Tourists will also form an
integral market to the District of Squamish.
Retail Strategy
6-2
Primary Trade Area (PTA)
Based on the factors identified above, the primary trade area of the District of Squamish is
delineated as follows and illustrated in Figure 6.1.
The primary trade area boundaries closely follow those for the communities and unincorporated
areas within the southern portion of the Squamish-Lillooet Regional District:
North: Garibaldi
South: north of and including Britannia Beach
Given the lack of significant shopping venues in the outlying communities of the PTA region,
frequent shopping trips are destined to the District of Squamish via Highway #99.
Secondary Trade Area (STA)
The secondary trade area is expected to include the region from outside the PTA to the north
covering the northern portion of the Squamish-Lillooet Regional District. Most development in
this region is situated along Highway #99 and thus the trade areas are centred around this
elongated section. The major communities in the secondary trade area include Whistler,
Pemberton, and Lillooet. Other smaller communities encompass Gold Bridge, Birken & D'Arcy.
In addition to the PTA, Figure 6.1 also illustrates the boundaries of the STA.
6.3 TRADE AREA CHARACTERISTICS
Given the location of Squamish and the existing and planned road network, demand for the
District of Squamish will be largely generated from local and regional residents. This is
supplemented by strong tourist traffic from the Squamish-Lillooet region. This subsection
provides a detailed description of the socio-economic and demographic characteristics of this
population base (as summarized in Table 6.1) and its influence on the potential merchandise mix
required at the downtown location. Related expenditure potential is detailed in Section 7.
Retail Strategy
6-3
Figure 6.1: Trade Area Analysis
Legend
Primary Trade Area
Hwy 97
Secondary Trade Area
Comox-Strathcona Regional
Comox-Strathcona
Regional District
District
Total Trade Area
Census Division
Boundaries
Gold Bridge
Bridge
Gold
Cache
Cache
Creek
Creek
Cache
Cache
(
(
(
(
(
(
Highways
(
(
Ashcroft
(
(
(Ashcroft
(
(
Lillooet
(
(
(Lillooet
29 km
Squamish-Lillooet Regional
Squamish-Lillooet
Regional District
District
Hwy 99
Powell
Powell River
River Regional
Regional District
District
T-C 1
( Birken
Birken
Hwy 97C
(
(
(
(
(
(
Logan
Logan Lake
Lake
Secondary
Secondary Trade
Trade Area
Area
( Pemberton
Pemberton
Hwy 8
Thompson-Nicola Regional
Thompson-Nicola
Regional District
District
(
(
(
Whistler
(
(
( Whistler
(
(
Merritt
Merritt
(
(
(
T-C 1
Trade Area
Area
Primary
Primary Trade
Powell
Powell
(
River
River
(
(
Courtenay
Courtenay
( (Comox
Comox
(
(
(
Royston
(
(
( Royston
(
(
(
(
(
(
(
Sunshine Coast
Sunshine
Coast
District
Regional
Regional District
Gillies
Gillies
Bay
Bay
(
Paradise
Paradise
Valley
Valley
Fraser Valley
Valley Regional
Regional District
District
Fraser
Hwy 5
Squamish
Squamish
Britannia
Britannia
(
Beach
Beach
Cumberland
Cumberland
Hwy 101
(
(
Sechelt
(
(
( Sechelt
Hwy 19
Gibsons
(
(
(
(
(
( Gibsons
Port
Port
Alberni
Alberni
(
(
(
(
Parksville
(
(Parksville
Vancouver
Vancouver
Burnaby
Burnaby
- Surrey
SSurrey
Surrey
-
FIGURE 6.1
November 2004
Trade Area Analysis
Retail Strategy
6-4
Historic and Projected Population
The Squamish-Lillooet Regional District has historically experienced moderate growth. Statistics
Canada has reported moderate growth over the past ten years at 2.8%. The change from 2002 to
2003 is stated at 0.9%, and over the last five years it sits at a steady 0.6%.
The Squamish area has seen some substantial growth over the past and this trend will continue.
The District of Squamish conservatively predicts that it will grow by approximately 3% each
year over the next ten years. The population is expected to grow from about 16,000 residents
currently to just over 19,000 in 2010. This calculates to an increase in approximately 19.4%. The
rest of the region is not far behind. The expected rate of population increase from 2004 to 2010
for the total trade area is predicted at 16.6%. Table 6.1 outlines the population details for the
Squamish trade areas.
PTA
1986
1996
2003
2004
2005
2010
2015
10,157
13,994
14,954
16,000
16,560
19,668
23,359
37.8%
6.9%
7.0%
3.5%
18.8%
18.8%
15,407
20,225
19,853
20,101
22,143
24,248
99.2%
31.3%
-1.8%
1.2%
10.2%
9.5%
29,401
35,179
35,853
36,661
41,811
47,607
64.3%
19.7%
1.9%
2.3%
14.0%
13.9%
% Change
STA
7,734
% Change
TTA
% Change
17,891
Statistics Canada projects population growth in the region to grow by approximately 6000
residents over the next 5 years. The population in the total trade area in 2004 is estimated at
35,853, which is expected to grow to approximately 41,811 in 2010. This increase in growth is
calculated at about 16.6%.
The District of Squamish possesses most of the population in the Squamish-Lillooet Regional
District. The Figure 6.2 below summarizes the population in the Regional District.
Retail Strategy
6-5
Figure 6.2: Squamish Lillooet Regional District Population Proportions
Rest of Region
17%
Pemberton
6%
Squamish
42%
Lillooet
8%
Whistler
27%
Source: BC Stats, 2003 & TREC International, 2004
Retail Strategy
6-6
Table 6.2: Squamish Trade Area Residents' Demographic & Home Ownership Characteristics
Primary Trade Area
%
TOTAL POPULATION
Total Population
%
British Columbia
%
14,764
100.0
17,869
100.0
3,907,738
100.0
2,175
3,055
3,325
3,670
2,485
14.7
20.7
22.5
24.8
16.8
1,985
3,525
5,625
3,700
1,980
11.1
19.7
31.5
20.7
11.1
446,715
773,700
838,890
935,595
912,845
11.4
19.8
21.5
23.9
23.4
11,360
3,530
5,915
525
1,400
100.0
31.1
52.1
5.6
12.3
13,820
6,695
5,305
345
1,510
100.0
48.4
38.4
2.5
10.9
3,201,665
1,011,280
1,626,230
193,920
370,240
100.0
31.6
50.8
6.1
11.6
1,085
1,680
925
1,375
200
20.5
31.7
17.5
25.9
3.8
1,895
2,325
1,155
1,295
150
27.6
33.8
16.8
18.8
2.2
418,940
515,005
227,070
319,545
53,770
27.3
33.6
14.8
20.8
3.5
14,764
100.0
17,869
100.0
3,868,875
100.0
4,165
930
7,750
2,230
425
28.2
6.3
52.5
15.1
2.9
5,105
2,840
7,700
735
430
28.6
15.9
43.1
4.1
2.4
939,460
175,080
24.3
4.5
12,420
30
950
84.1
0.2
6.4
15,250
135
130
85.3
0.8
0.7
3,027,910
6,120
339,230
78.3
0.2
8.8
EDUCATION
Less than Grade 9 (Pop
15+)
Grades 9-13 (Pop 15+)
Trades Certificate or
Diploma (Pop 15+)
Other Non-university Only
(Pop 15+)
University (Pop 15+)
10,190
545
100.0
5.3
12,745
335
100.0
2.6
2,890,730
190,905
100.0
6.6
3,510
1,880
34.4
18.4
3,560
1,710
27.9
13.4
865,740
370,170
29.9
12.8
2,450
24.0
3,180
25.0
690,430
23.9
1,800
17.7
4,015
31.5
773,485
26.8
AVERAGE 2000 HOUSEHOLD
INCOME $
62,401
AGE DISTRIBUTION
0-9
10-24
25-39
40-54
55+
MARITAL STATUS
Population: 15+
Single
Married
Widowed
Divorced/Separated
HOUSEHOLD SIZE
1 Person
2 Persons
3 Persons
4-5 Persons
6+ Persons
ETHNIC ORIGIN / VISIBLE
MINORITY
Canadian
North American Indian
European
Asian
Other
MOTHER TONGUE
Mother Tongue: English
Mother Tongue: French
Mother Tongue: Non-Official
EMPLOYMENT
Population 15+
Population 15+ in Labour
Force
Employed
Unemployed
Not in Labour Force
Retail Strategy
62,095
57,593
11,285
8,205
100.0
72.7
13,705
11,170
100.0
81.5
3,160,570
2,059,945
100.0
65.2
7,590
600
3,100
67.3
5.3
27.5
10,260
945
2,555
74.9
6.9
18.6
1,883,975
175,975
1,100,620
59.6
5.6
34.8
6-7
Primary Trade Area
%
LABOUR FORCE
Agricultural, forestry, fishing
& hunting
Mining and oil and gas
extraction
Utilities
Construction
Manufacturing
Wholesale trade
Retail trade
Transportation and
warehousing
Information and cultural
industries
Finance and insurance
Real estate and rental and
leasing
Professional, scientific and
technical services
Management of companies
and enterprises
Admin. support, waste
mgmt. and remediation serv.
Educational services
Health care & social
assistance
Arts, entertainment and
recreation
Accommodation and food
services
Other services (except public
administration)
Public administration
%
British Columbia
%
340
4.2
520
4.7
78,645
3.8
20
0.2
30
0.3
14,040
0.7
55
725
665
140
785
720
0.7
8.9
8.1
1.7
9.6
8.8
80
1,015
315
70
1,190
545
0.7
9.1
2.8
0.6
10.7
4.9
11,645
118,705
194,360
82,465
232,960
114,185
0.6
5.8
9.4
4.0
11.3
5.5
210
2.6
125
1.1
62,180
3.0
215
105
2.6
1.3
130
395
1.2
3.5
80,625
41,535
3.9
2.0
340
4.2
520
4.7
136,990
6.7
10
0.1
0
0.0
1,370
0.1
305
3.7
630
5.6
80,805
3.9
450
645
5.5
7.9
595
685
5.3
6.1
139,660
200,065
6.8
9.7
265
3.2
895
8.0
46,155
2.2
1,330
16.2
2,345
21.0
167,130
8.1
385
4.7
345
3.1
98,285
4.8
420
5.1
665
6.0
112,790
5.5
DWELLINGS
Total Dwellings
Owned
Band Housing
Rented
Single Detached
Semi-Detached House
Row House
Apt. Detached Duplex
Apartments 5+ Storeys
Apt. < 5 Stories
Movable
Other
5,295
3,815
10
1,485
3,250
255
640
245
20
625
260
40
100.0
72.0
0.2
28.0
61.4
4.8
12.1
4.6
0.4
11.8
4.9
0.8
6,865
4,120
165
2,535
3,290
385
1,100
840
40
770
425
60
100.0
60.0
2.4
36.9
47.9
5.6
16.0
12.2
0.6
11.2
6.2
0.9
1,534,335
1,017,485
4,485
512,360
841,540
46,320
97,265
97,340
101,570
302,780
43,915
3,605
100.0
66.3
0.3
33.4
54.8
3.0
6.3
6.3
6.6
19.7
2.9
0.2
DWELLING CONSTRUCTION
Before 1946
1946-1960
1961-1970
1971-1980
1981-1990
1991-1995
1996-2001
190
330
860
1,765
855
825
510
3.6
6.2
16.2
33.2
16.1
15.5
9.6
200
265
675
1,580
1,750
1,050
1,360
2.9
3.9
9.9
23.1
25.6
15.4
19.9
135,990
179,310
222,170
355,125
302,975
195,605
143,155
8.9
11.7
14.5
23.1
19.7
12.7
9.3
Source: Statistics Canada, 2000, MapInfo and TREC International Inc. 2004
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6-8
Age Distribution
x There are a large number of persons among the middle age cohort of 25-39 in the
STA with approximately 31.5% compared to both the PTA and provincial average,
which is around 22%.
x The percentage of residents in both the PTA and STA cohort of 55+ is much lower
than the provincial average. The province averages 23.4% while both the trade
areas show 16.8% and 11.1% respectively.
Marital Status & Household Size
x It is notable that the STA has a very high percentage of single persons at 48.4%,
which compares to the PTA and the provincial average of around 31%.
Consequently, there is also a lower percentage of married persons in the STA at
38.4% compared to the provincial percentage of 50.8%.
x The PTA inhibits larger household sizes than the STA and provincial percentages.
Figure 6.3 below illustrates the proportion of household sizes.
Figure 6.3: Squamish Trade Area Household Size
Squamish Trade Area Household Size
100%
80%
6+ Persons
4-5 Persons
3 Person
2 Person
1 Person
60%
40%
20%
0%
PTA
STA
BC
Source: Statistics Canada, 2000; MapInfo & TREC International Inc., 2004
Ethnic Origin & Language
x The trade areas are significantly less ethnically diverse than the province with
figures hovering at approximately 28% and the province showing 24%.
Specifically, 84.1% of the PTA residents and 85.3% of the STA residents have
English as their mother tongue. This is higher than the provincial percentage of
78.3%.
x The total trade area has a higher percentage of North American Indian ancestry
with the STA having over 15% of its population compared the province's 4.5%.
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6-9
Education & Employment
x The PTA and STA contrast each other in terms of education. The STA possesses
an equal footing when comparing its percentages to the provincial average. This is
with the exception of a low rate of Less than Grade 9 education and a higher rate
of University Completion. Compared to the provincial average, the PTA has a
higher percentage in both the Grades 9-13 and Trades Certificate & Diploma
categories, with lower percentages in the University Completion.
x There are significantly higher percentages of persons above the age of 15 in the
labour force in both the trade areas than the provincial average. This cohort
demonstrates a strong potential market with much disposable income.
x Overall, the employment numbers are higher in the trade areas than compared to
the provincial average, which consequently demonstrates lower percentages for the
trade areas in the category Not in Labour Force. Figure 6.4 below demonstrates
the difference in employment on the trade areas against the province.
Figure 6.4: Squamish Trade Area Employment Structure
BC
Not in Labour Force
Unemployed
STA
Employed
Population 15+ in Labour
Force
PTA
0
20
40
60
80
100
Source: Statistics Canada, 2000; MapInfo and TREC International Inc., 2004
x The average income in both the trade areas are just over $62,000 each, which is
higher than the provincial average of $57,593.
x The labour force within the total trade area is somewhat comparable to the
provincial average. One exception is the accommodation and food services
category of which the PTA and STA’s percentages of 16.2% and 21.0% are
significantly higher than the provincial average of 8.1%.
x The construction category is also higher for the PTA and STA at 8.9% and 9.1%
compared to the provincial average of 5.8%. Another notable category is arts,
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6-10
entertainment and recreation, which the PTA and STA possess percentages of
3.2% and 8.0%, which compare to the provincial average of 2.2%.
Dwelling Type & Ownership
x With respect to the pattern of ownership, 72% of PTA residents own their homes.
This is in comparison to the STA that possesses a percentage of 60% and the
province, which averages 66.3%. This high degree of residential home ownership
within the PTA indicates a high level of population stability and as such, should
bode well for the District of Squamish.
x Specifically within the Squamish PTA, 61.4% of homes are single detached upon
comparison to 47.9% for the STA and 54.8% for the provincial benchmark.
6.4 TOURISTS PROFILE
Tourist Visitation
Overall, the tourist market to the Squamish-Lillooet Regional District can be classified into two
types of visitors, day-trippers and overnight visitors. The day-trippers consist mostly of visitors
close to the region and is defined by BC Tourism as visitors that drive more than 80 km one way
to visit a destination. Overnight visitors are tourists that typically spend more than one night at
the stated destination. Day-trippers are mostly made up of local BC residents, while overnight
visitors are mostly non-resident visitors and few BC residents. Salient characteristics of each
type of tourist follow:
x Total visitors to British Columbia numbered over 30 million. Subsequently, the
Vancouver Coast and Mountains region totaled over 15 million in 1995. In respect
to the other tourist regions in BC, this number encompasses approximately 50% of
all visitors.
x Those 15 million visitors to the region in 1995 also spent an estimated $3.4 billion
dollars. This translates to about $224 per visitor. The revenue for this region
encompasses 39% of all revenue generated in by tourists in British Columbia.
Figure 6.5 below demonstrates the proportion of revenue.
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6-11
Figure 6.5: BC Visitor’s Share of Expenditures
BC Visitor's Share of Expenditures
Vancouver Island
29%
Vancouver Coast &
Mountains
38%
South ThompsonOkanagan
9%
North ThompsonOkanagan
6%
Northwest
5%
Cariboo
2%
Northeast
2%
East BC Rockies
5%
West BC Rockies
4%
Source: BC Tourism, 1998
x The tourist information for Vancouver Coast & Mountains is further sub divided
into non-residents and BC residents which make up about 8.8 and 6.4 million
visitors respectively, with revenues of $2.5 billion and $898 million.
x On average BC-resident visitors to the region spent, in 1998, approximately $54
per day or $140 per stay in expenditure, generating $898 million in tourism
revenue.
x Non-resident visitors encompass approximately 74%. On average non-BC-resident
visitors to the region spent, in 1998, approximately $69 per day or $284 per stay in
expenditure, generating $2.512 billion in tourism revenue.
x Non-residents to the Greater Vancouver Region alone generated over 80% of the
$2.5 billion amount. This translates to about $2.1 billion. Tourism in the Greater
Vancouver region has been steadily increasing the past decade and Tourism
Vancouver estimates that 8.5 million tourists will visit in 2004. The Greater
Vancouver Region possesses many growing activities and interests such as cruises,
float plane tours, and convention space, which attract many resident and nonresident, leisure and business visitors.
x Whistler saw just over 2 million visitors in 1995 with total revenue estimated at
over $520 million. Per capita spending is calculated to approximately $258. This is
significantly higher than the average spending estimate for the Vancouver Coast &
Mountains region, which sits at $224 per visitor. Visitors tend to spend more in
Whistler than compared to the entire region.
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6-12
x The average number of visitors in the resort per day in winter 2002/2003 was
about 15,000 and in the summer of 2003 it was approximately 11,000.
x The permanent resident population of Whistler is just over 9,700.
x Many of Squamish’s visitor’s are directly related to Whistler. Whistler has a very
large pull for visitors, thus much of the tourists in Squamish are termed
“destination visitors,” which usually spend a few hours or possibly a night or two.
There is much potential to capture a larger market with the strong numbers that
Whistler experiences.
x Tourism Whistler divides visitors into summer and winter categories. During the
winter of 2003 and 2003 Whistler experienced over 850,000 visitors while in the
summer of 2003 it experienced over 1 million. Tourism Whistler predicts that
during the winter of 2002 and 2003 there were on average 10,763 visitors per day.
x According to Tourism Whistler the majority of the market origin is from Canada
with the United States close behind. Whistler’s hotel market origin during the past
four seasons is summarized in Table 6.3.
Table 6.3: Whistler Hotel Market Area of Origin
Summer 03
Winter 02-03
Summer 02
Winter 01-02
Canada
57.8%
35.5%
59.1%
38.8%
United States
33.6%
39.9%
33.3%
40.6%
Europe
4.4%
12.3%
4.7%
11.6%
Asia Pacific
3.5%
10.3%
2.4%
7.3%
Other
0.7%
1.9%
0.6%
1.7%
Source: Tourism Whistler, 2004
The summer and winter traveling party is demonstrated in the figures below in Figures 6.6a and
6.6b.
Figures 6.6a & 6.6b: 2003 Summer & 2002-03 Winter Activity Participation
Winter Traveling Party 03-04
Summer Traveling Party 2003
Spouse
Spouse & Children
Family
Friends
Friends
Children
Spouse
Alone
Alone
Business Group/Conference
Club
Friends & Spouse
Tour Group
Associates
Other
Spouse & BGC
Friends & Children
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6-13
x Many visitors enjoy a variety of activities in Whistler. Among them, dining out
and shopping seems to be most popular. Figures 6.7a and 6.7b outlines the
activities and their rank.
Tables 6.7a & 6.7b: 2003 Summer & 2002-03 Winter Activity Participation
Winter Activity Participation
Summer Activity Participation
Di
n
Go
lf
us
eu
m
M
Bi
kin
g
Ar
tG
al
le r
ies
ng
htl
if e
Hi
ki
Ar
ea
Ni
g
Go
nd
ola
Ou
t
Sh
op
pi
n
g
Si
gh
tse
ein
La
g
ke
&
Be
ac
h
Fe
s ti
va
ls
in g
Di
n
in g
Ou
t
Sh
op
pi
ng
Ni
gh
tlif
Sp
e
a/
Me
ss
ag
e
Ci
Ar
n
em
ea
a
Si
gh
tse
ein
Sn
g
ow
mo
Fe
bil
ing
s ti
va
lo
rE
ve
Ot
he
nt
rA
Ga
cti
vit
lle
r ie
ies
s/M
He
us
li- s
eu
m
k ii
s
ng
Cr
/
B
os
oa
sC
rd
ing
ou
nt
ry
Sk
iin
g
90
80
70
60
50
40
30
20
10
0
100
90
80
70
60
50
40
30
20
10
0
Whistler’s total commercial floorspace has expanded from 128,701 m² to 171,277 m². This
translates to an increase in over 33%. Table 6.4 summarizes Whistler’s floorspace.
Table 6.4: Commercial Floorspace in Whistler (sq. ft.)
1995
1996
1997
1998
1999
2000
2001
2002
Retail
242,326
295,384
336,035
348,000
357,512
359,911
366,991
377,235
Service
69,004
71,016
72,695
73,620
75,363
107,977
128,109
120,899
Food/Restaurant/Bar
255,550
276,112
307,983
330,085
315,193
323,930
327,416
332,818
Total
566,880
642,512
716,713
751,704
748,067
791,818
822,516
830,952
x Non-resident visitors to the Vancouver Coast & Mountains Region stayed an
average of 4.1 days as compared to the province’s average of 6.9 days. BC
Resident visitors spent less time at 2.7 days on average and is similar to the
provincial average of 3.1 days.
x BC Tourism has classified North American visitors into Regional and Long Haul.
Regional North Americans accounted for the most visitors to the Vancouver Coast
& Mountains. Regional US encompassed 28% while Regional Canadians make up
22%. Visitors from Asia/Pacific and Europe account for approximately 10% and
6% respectively.
x The primary trip purpose for non-resident overnight tourists to the Vancouver
Coast & Mountains region was leisure at 84% compared to business, which
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6-14
accounted for 16%. For BC Resident overnight visitors leisure accounted for 88%
while business took the rest of the 12%.
x North American visitors to the Vancouver Coast & Mountains region made up a
large portion of the business category than overseas visitors, which generally
visited for leisure.
x Out of all the non-resident visitors to the Vancouver Coast & Mountains region,
Europeans accounted for the greatest proportion to visit the Sea to Sky Country.
x Non-residents spent over half of their expenses on food & beverage and
accommodation. Many overseas and long haul visitors spent more on packaged
tours at about 20% than on food & beverage at 19%. It can be concluded that many
of the large expenses are included within the tour package. BC Residents on the
other hand spent approximately 1/3 of their expenditure on food & beverage.
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6-15
Table 6.5 below outlines the Tourism Profile for the Vancouver Coast & Mountains region.
Table 6.5: Tourism Profile – Vancouver Coast & Mountains Region
VANCOUVER COAST & MOUNTAINS TOURISM PROFILE
%
Origin
Canada
US
International
Method of Travel to BC
Automobile
Recreational Vehicle
Bus
Plane
Main Purpose of Trip to Region
Business
Conference
Friends and Relatives
Touring Trip
City Trip
Personal
Wilderness/Adventure
Special Event
Party Size
Activities
Shopping
Tour
Sightseeing
Outdoor Activities
Sporting Activities
Beach/Lakeshore
Museum/Gallery
Historic Site
Gardens/Parks
Friends/Relatives
Average Expenditure per Stay
Average Expenditure per Day
Length of Stay
36
47
17
67
10
12
10
9
0
33
27
1
6
17
0
2.4
73
1
66
75
20
4
43
22
10
10
$113.00
$32.00
3.8 days
Source: Tourism BC, 1998
x This relatively high spending pattern can be a great potential to capture more of
the tourist dollar. Unique retail and cultural offerings can offer to capture this
market.
Retail Strategy
6-16
Cultural Tourism
x An examination of cultural tourism based shopping elsewhere starts to reveal the
potential that downtowns such as Squamish have to capture this growth market.
Prior to examining this, it is important to define ‘cultural tourism’.
x Cultural tourism is defined as visitors from outside of the Squamish region that
travel here primarily motivated or in part interested in the historical, educational,
artistic, or lifestyle/heritage offerings of the community, region, ethnic groups or
institutions. There are three main categories of cultural tourism products as
illustrated in Figure 6.8, namely (1) institution based; (2) lifestyle/heritage based;
(3) event-based. The horizontal arrows between these three categories denote that
all of them are frequently linked. In the future, it could be held at a new purpose
built venue within the new waterfront plan area and integrated with an interactive
heritage ‘discovery centre’. It could also spill out into and animate the street as a
unifying this district of the City as well as become a tourist attraction.
In addition to the characteristics defined for the non-resident and resident BC type visitors, an
extensive review of reports published in both Canada and the U.S. has revealed the following
profile of the cultural tourist:
x has a higher income and spends more money while on vacation;
x is more educated than the general public;
x tends to be in older age categories;
x spends more time in an area while on vacation;
x is more likely to stay at hotels, motels, and bed & breakfast places;
x is significantly more likely to shop and dine-out; and
x more females than males, at least in making the decision of travelling for the
purpose of culture and the arts. Females also represent a disproportionate share of
shoppers and package tour passengers.
A comparison of the most important attributes when planning trips between the 1980’s and
1990’s reveals additional important information about the cultural tourist. In the 1980’s, U.S.
travelers spent their money very freely. Comparisons to the 1990’s, there is a shift from
escapism to enrichment with a significantly greater importance attached to understanding culture
as depicted in Figure 6.5.
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6-17
Figure 6.8: Typology of Cultural Tourism
CULTURAL
TOURISM
INSTITUTION
¾MUSEUMS
¾GALLERIES
¾HISTORIC SITES
¾THEATRES
¾OTHER PERFORMING
ARTS CENTRES
¾SCIENCE CENTRES
LIFESTYLE
HERITAGE
¾HERITAGE THEMED
DISTRICTS
¾STREETSCAPES
¾MONUMENTS
¾CUSTOMS
¾LANGUAGE
EVENTS
¾FESTIVALS
¾FAIRS
¾SPECIAL EVENTS
¾EXHIBITIONS
¾COMPETITIONS
¾
GASTRONOMY
Source: LORD Cultural Resources Planning Management Inc.
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6-18
Characteristic
Implications
x
Over the 1986 to 2003 period, the population of the
PTA and STA was growing at an average of 5% - 6%,
per annum and is forecast to continue to grow at
approximately 2% to 4% per year to 2010.
x
The timing of the revitalization and potential expansion of
shopping and entertainment within Downtown Squamish is
appropriate and would be supported by a growing population
base.
x
Overall, the population within the primary trade area
can be characterized as a ‘youthful’ community with a
higher percentage of residents in the 0-24 cohort.
Especially in the STA, there are significantly more
single residents than the provincial average.
x
The retail and service mix should reflect the aspiration of a
growing, young plus mature family oriented market.
x
Entertainment venues such as family venues, themed
‘interactive’ play areas, musueums, theatres, and outdoor
cafes/eating areas would be successful in the downtown core
and planned waterfront of Squamish.
x
Approximately 50% of TTA residents are single.
Conversely, the STA on average has a greater
household size than the PTA.
x
The revitalized Downtown Squamish and waterfront area must
emphasize value, service and a continued strengthening as a
place for social gathering.
x
Average 2000 household income was estimated at
$62,401 and $62,095 for the PTA and STA
respectively.
x
This particular income profile is well suited to the target
market of Downtown Squamish. Value lifestyle oriented
retailers offering quality and ‘branded’ merchandise would be
particularly successful.
x
Many Squamish residents are characterized as
having or wanting to have active arts patronage. This
type of resident is typically more educated with higher
household incomes than the average BC resident.
x
Some type of cultural/arts facility and/or service or event(s) is
recommended for the Downtown core and/or adjacent areas
and has just been announced for the District.
x
Non-resident tourists who visit the Squamish region
for cultural purposes are generally like their resident
counterparts. In addition, they have a significantly
higher propensity to shop and spend significantly
more than non- cultural tourists.
x
The addition of a cultural facility as well as the marketing and
packaging with other cultural facilities/heritage attractions in
the community will benefit all parties in catering to this growing
market.
x
Increasingly, travelers are placing more value on
understanding culture as well as experiencing a
completely different culture.
x
The revitalized Downtown Squamish and waterfront area has
an excellent opportunity to tap into these changing travelers’
values and capitalize on the District’s potential cultural flavour.
6.5 SUMMARY
The District of Squamish serves as a regional hub for retailing and services for the SquamishLillooet Regional District. This role will be enhanced further with the repositioned Downtown
Squamish core. Based on a number of factors, the Primary Trade Area (PTA) is delineated as
the southern portion of the Squamish-Lillooet Regional District comprising communities such as
Squamish, and Britannia Beach. The Secondary Trade Area (STA) includes Whistler,
Pemberton, Lillooet and many of the smaller communities situated in the northern portion of the
Squamish-Lillooet Regional District. A profile of young and single residents inhabits the STA
while a young family oriented population with large households characterizes the PTA. Both
trade areas possess above average household income. This younger area population with higher
than average income has the potential to translate into higher spending in the community. Such a
consumer profile would be well served by a variety of value-oriented retailers and convenient
‘one-stop’ lifestyle shopping.
According to the delineated trade areas, the forecast population base for the two trade areas
identified for the District of Squamish is summarized in Table 6.1.
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6-19
PTA
1986
1996
2003
2004
2005
2010
2015
10,157
13,994
14,954
16,000
16,560
19,668
23,359
37.8%
6.9%
7.0%
3.5%
18.8%
18.8%
15,407
20,225
19,853
20,101
22,143
24,248
99.2%
31.3%
-1.8%
1.2%
10.2%
9.5%
29,401
35,179
35,853
36,661
41,811
47,607
64.3%
19.7%
1.9%
2.3%
14.0%
13.9%
% Change
STA
7,734
% Change
TTA
% Change
17,891
The Vancouver Coast & Mountains Region drew about 38 million visitors in 1995 with
approximately 2 million destined for Whistler. These visitors also poured $3.4 billion into the
region. This poses as a large potential for Squamish to capture more of that market.
As Squamish and the surrounding trade areas continue to grow, the demand for new retailing,
particularly well known regional and national operators emphasizing a value niche, would
increase over time. As well as incorporating and marketing a cultural component within the
revitalized Downtown Squamish and waterfront area, this niche would serve to not only
differentiate the District of Squamish, but more importantly cater to a more demanding resident
population as well as a changing tourist customer base which values understanding culture that is
set in an entertaining and educational environment. This has significant economic implications
to Downtown Squamish as cultural tourists are typically higher spending and shop significantly
more than tourists who travel for other reasons.
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6-20
7.0 RETAIL EXPENDITURE POTENTIAL
ASSESSMENT
7.1 INTRODUCTION
A major determinant relating to the retail opportunity and market viability for retail retention and
recruitment for the District of Squamish is the size and expenditure characteristics of its resident
trade areas and tourist markets. The estimates of the retail sales potential of the trade areas are
derived from a combination of:
i)
an analysis of income and population characteristics of the two trade areas (i.e.
PTA & STA) identified for the District of Squamish;
ii) an analysis of 2000 Canadian family expenditure data compiled by MapInfo
based on Statistics Canada data; and
iii) Forecasts conducted by TREC International of this Statistics Canada generated
data based on annual growth for the retail industry and Conference Board of
Canada estimates.
iv) Tourism expenditure data was obtained from various sources and based on our
experience with similar destinations that have already targeted tourists into their
communities.
Each of these analyses provides the basis for estimating the potential retail expenditures in both
the trade areas as well as the tourist markets. This section of the report will provide the retail
sales potential estimates by retail/commercial category for the trade area and tourist markets that
hold potential to be attracted to the District of Squamish between 2005 to the year 2015.
7.2 RETAIL CUSTOMER GROUPS
as well as specifically the viability of the revitalized downtown and planned waterfront of
Residents (Lillooet, Pemberton,
Whistler, etc.)
i District of Squamish Winter &
Summer Tourists
i Whistler Destination Tourists
(Winter & Summer)
i Greater Vancouver Residents –
Daytrippers
i Vancouver Coast & Mountains
Region Visitors (not incl. Whistler)
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7-1
The expenditure patterns and motivations of diverse range of individual groups are quite
different. The composition of the groups and their potential contribution to the District of
Squamish is as follows:
District of Squamish Residents
x The district encompasses the town of Squamish as well as other small towns close-
by such as Brackendale.
x The majority of the district residents reside within a 20 to 30 minute drive of
Squamish and could potentially be enticed to visit Squamish more frequently given
the right mix of development.
x The population for the District of Squamish is estimated to be approximately
15,000 in 2003 according to the District of Squamish.
District of Squamish Winter & Summer Tourists
x According to Squamish Tourism over 9,000 tourists visited Squamish in 2003.
Squamish is deemed as the “Outdoor recreation capital of Canada,” and many of
the tourists visit during the summer to take advantage of the recreation
opportunities.
x Many of the visitors are passers-by, especially in winter, who are going to
Whistler. The Destination tourist numbers for the District of Squamish can be
greatly improved with the prospect of the waterfront and new retail development.
Squamish-Lillooet Regional District Residents
x The regional district encompasses the towns of Lillooet, Pemberton, Whistler, Mt
Currie, and Birken, as well as the rural areas surrounding these townships.
x The population for the Squamish-Lillooet Regional District is estimated by
Statistics Canada at 18,000 for the year 2000. This region is anticipated to
conservatively grow at an average annual rate of approximately 2.5% per year over
the next few years.
Whistler Destination Tourists (Winter & Summer)
x According to Tourism Whistler, over 1 million tourists visited Whistler in the
summer of 2003. For the winter season of 2003/2004 Whistler saw over 870,000
visitors. The expected change in growth is estimated to be an increase of 16%
between the years 2005 to 2010.
x The total amount of Commercial Floor space in Whistler has greatly increased
from 566,880 sq. ft. in 1995 to 830,952 sq. ft. in 2002. This is due in large part to
the high number of tourists that visit the area.
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7-2
x Another study by Simon Fraser University and Canada West Ski Areas
Association indicates that approximately 20% of skiers had taken summer
vacations at the ski area they were visiting.
x According to Tourism Whistler the majority of the market origin in the hotel
industry is from Canada with the United States close behind. Canada makes up
almost 60% of the tourist origin in summer while the US inhabits approximately
33%.
x Whistler also attracts many international visitors as well and these visitors are
known to spend more than local tourists. Winter is the strongest season as
approximately three times more tourists visit during that season than the summer
(Tourism Whistler, 2003). BC Tourism estimates that non-BC tourists spend more
than twice that of local tourists.
Greater Vancouver Resident Daytrippers
x An estimated 2.36 million daytrippers visited Squamish in 2002 and is expected to
increase to over 2.4 million in 2003, a percentage growth of about 2%.
x According to TREC International growth rates the number of daytrippers to
Squamish in 2015 is estimated at almost 3 million. This is an increase of 25% from
2003.
Vancouver Coast & Mountains Region Visitors
x In 1996 visitors to the Vancouver Coast & Mountains Region encompassed about
39%of all tourism revenue to the province of British Columbia.
x Tourism revenue for this region was approximately $3.41billion in that same year.
x Non-resident visitors spent on average $69 per day and $284 per stay in the region,
while local residents spent about $54 per day and $140 per stay in the region.
x BC resident visitors to the region in 1996 generated $898 million in revenue. That
is about 26% of the region's revenue.
x Tourism in the Greater Vancouver region has been steadily increasing the past
decade and Tourism Vancouver estimates that 8.5 million tourists will visit in
2004.
x The Greater Vancouver Region possesses many growing activities and interests
such as cruises, well established tourism attractions, and conventions, which attract
many resident and non-resident, leisure and business visitors.
x Squamish holds significant potential to become a major tourism destination and
tap into this growing market.
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7-3
7.3 EXPENDITURE PATTERNS
This section outlines the expenditure potential and warranted floor space based on an
examination of key user groups. Generally, expenditures will be derived from two broad
markets:
1. trade area residents (i.e. both PTA & STA); and
2. tourism user groups (including both daytrippers and destination tourists).
Each of these distinct market groups has different retail requirements and spending patterns.
Thus, different methodologies are utilized for the resident and tourism markets. The following
subsections provide highlights of the expenditure potential of each of these markets.
Residents’ Retail and Service Expenditure Potential
The analysis documented in Appendix IV calculates the amount of retail sales expenditure
growth in the identified resident based trade areas based on population and income growth
projections for the resident markets. This will be supplemented with ‘inflow’ expenditures
resulting from tourists that are planned to visit the District (see next subsection).
The majority of the resident market that is expected to patronize the retail and entertainment
facilities within the District of Squamish will largely come from within the District (i.e. PTA)
and to a lesser extent the identified secondary trade area (see Figure 6.1). Although residents
from outside this region will patronize the facilities, they will represent a separate proportion of
retail sales and are considered as day-trippers and overnight tourists (see next subsection).
As mentioned, the expenditure potential for the two trade areas by major retail and commercial
categories are outlined in Appendix IV. It is important to note that only those merchandise and
service categories that are likely to be represented in the District of Squamish are used in this
expenditure potential assessment and warranted floor space analysis (see Section 8).
For the purposes of projections, it is reasonable to assume that over the next decade, through
both strong and weak economic times in B.C. that retail expenditures will continue to fluctuate,
but will on average grow at the conservative rate of approximately 1.5 % per annum in real
terms. All dollars quoted are 2005$ and not adjusted for inflation.
Based on the foregoing assumption, expenditure potential estimates for each trade area have been
forecast over the projection period as shown in Table 8.1 (see Section 8). The total expenditure
potential by retail/service category is summarized in the next section under the warranted floor
space projection for the District of Squamish between the years 2005 to 2010.
As the level of retail floorspace that can be supported by resident markets is somewhat limited, it
is the visitor or tourism based markets (including daytrippers) that have the greatest potential to
allow commercial development to significantly develop within the District.
Retail Strategy
7-4
Visitor Expenditure & Market Share
As noted previously, in addition to the retail expenditure potential derived from trade area
residents defined for District of Squamish, those expenditures from tourists need to be taken into
account. This will include expenditures by both day-trippers (assumed to be those outside of the
District) who come to Squamish for the day as well as overnight destination tourists that spend
one or more nights in the Vancouver/Whistler region.
Table 7.1 illustrates the annual projected visits to the Squamish trade area by tourism user
groups. The visitor numbers are broken down over the next 10 years and calculated by an annual
growth rate. From 2005, similar to the trade area population, the visitor numbers within the
Squamish trade areas are expected to rise over the next 10 years. The visitor numbers in Table
7.1 are then multiplied by the average daily expenditures for the users groups defined in Section
7.2. It is important to note that a different methodology was utilized for trade area residents and
tourists as noted below. The expenditures are calculated over a 10-year period with a one percent
annual inflation adjustment for the year 2005 and a 1.5% annual inflation adjustment for the
years 2010 and 2015.
The tourist user groups’ expenditures have been divided into three separate categories, which
include: convenience, comparison and food/beverage/entertainment expenditure. Convenience
expenditures includes groceries, drugs, take out, beer and other alcohol purchases, while
comparison includes items such as sports/recreation goods, clothing, home
furnishings/accessories, arts and crafts and other similar merchandise.
The tourist expenditure estimates were obtained from a number of sources including studies of
B.C. skier daily expenditures, Tourism B.C. visitor expenditure and visitor numbers, Tourism
Whistler visitor numbers, Vancouver Tourism visitor numbers, National Ski Areas Association
destination skier expenditure, U.S. Department of Commerce shopping expenditures as well as
our experience of tourist expenditure at other resorts and tourist destinations. Generally speaking,
the average Whistler Destination visitor spends significantly more on convenience, comparison
and food/beverage and entertainment purchases than Day tripper visitors.
Average retail and service expenditures by visitors to the Vancouver Coast & Mountain region
are based on two separate surveys and sources described as follows:
1)
Tourism BC data as outlined in The British Columbia Visitor Study (1997) –
The Vancouver Coast & Mountain Visitor Report. The per diem estimates
for 2005 are based on data collected in both this study as well as the
Canadian and International Travel Surveys as compiled by Statistics
Canada; and
2)
A special study of overseas travelers to the U.S. prepared by the U.S.
Department of Commerce and the Taubman Company in 1999. This latest
study, entitled Shopping and Cultural/Heritage Tourism, has more recent
data than the previous study and is partially used in our analysis.
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7-5
Table 7.1: Projected Annual Visits by Tourism User Group
Percentage
Growth
2002-2003
Percentage
Growth
2003-2005
Percentage
Growth
2005-2010
Percentage
Growth
2010-2015
User Groups
2002
2003
Whistler Winter Destination Tourists
835,207
872,642
4.5%
925,786
6.1%
1,073,240
15.9%
1,244,179
15.9%
Daytrippers
58,464
61,085
4.5%
64,805
6.1%
75,127
15.9%
87,093
15.9%
Destination
776,743
811,557
4.5%
860,981
6.1%
998,113
15.9%
1,157,086
15.9%
Whistler Summer Destination Tourists
2005
2010
2015
1,066,668
1,027,520
-3.7%
1,090,096
6.1%
1,263,720
15.9%
1,464,998
15.9%
Daytrippers
192,000
184,954
-3.7%
196,217
6.1%
227,470
15.9%
263,700
15.9%
Destination
874,668
842,566
-3.7%
893,879
6.1%
1,036,250
15.9%
1,201,298
15.9%
Total Primary
1,901,875
1,900,162
-0.1%
2,015,882
6.1%
2,336,960
15.9%
2,709,177
15.9%
15,273,228
15,618,443
2.3%
16,210,475
3.8%
17,786,411
9.7%
19,508,651
9.7%
2,365,887
2,408,028
1.8%
2,493,810
3.6%
2,719,791
9.1%
2,966,249
9.1%
Total Secondary
17,639,115
18,026,471
2.2%
18,704,285
3.8%
20,506,202
9.6%
22,474,899
9.6%
Total Primary/Secondary
19,540,990
19,926,633
2.0%
20,720,167
4.0%
22,843,161
10.2%
25,184,076
10.2%
Vancouver Coast & Mountains Region
(outside Whistler)
Greater Vancouver Resident Daytrippers
Source: TREC International Inc.; 2004,Tourism BC, 1998; Tourism Whistler, 2004; BC Stats, 2004.
Retail Strategy
7-7
TABLE 7.2 TOURIST RETAIL EXPENDITURE POTENTIAL FOR THE DISTRICT OF SQUAMISH 2005-2015
Dollars/Inflation: 0%.
Market Segment
Total Annual Expenditure
2005
Convenience
Comparison
Targeted Capture Rate (%)
Food/Bev/Ent.
Total
Estimated Expenditure
Convenience Comparison Food/Bev/Ent.
Convenience
Comparison
Food/Bev/Ent.
Total
Whistler Winter
$
11,983,988
$
19,386,325
$
30,972,013
$
62,342,326
Daytrippers
$
867,941
$
1,298,309
$
1,130,327
$
3,296,577
Destination
$
11,116,047
$
18,088,016
$
29,841,686
$
59,045,749
Whistler Summer
$
9,600,711
$
17,636,217
$
28,283,943
$
55,520,870
Daytrippers
$
1,755,703
$
3,366,680
$
3,688,245
$
8,810,628
Destination
3%
5%
3%
$
359,520
$
969,316
$
929,160
2,257,996
3%
5%
3%
$
288,021
$
881,811
$
848,518
2,018,350
5,857,202
$
7,845,008
$
14,269,536
$
24,595,697
$
46,710,242
Vancouver Coast & Mts Visitors
$
175,812,183
$
263,718,275
$
468,191,689
$
907,722,148
0.5%
1.0%
0.5%
$
879,061
$
2,637,183
$
2,340,958
GVRD Resident Daytrippers
$
28,685,058
$
43,027,588
$
76,388,938
$
148,101,583
2.0%
5.0%
3.5%
$
573,701
$
2,151,379
$
2,673,613
5,398,693
Total Primary & Secondary
$
226,081,940
$
343,768,405
$
603,836,583
$
1,173,686,928
$
2,100,303
$
6,639,689
$
6,792,250
15,532,242
2010
Convenience
Comparison
Food/Bev/Ent.
Total
Whistler Winter
$
14,775,042
$
23,972,266
$
38,367,200
$
77,114,507
Daytrippers
$
1,035,260
$
1,569,983
$
1,361,269
$
3,966,512
Destination
$
13,739,782
$
22,402,283
$
37,005,931
$
73,147,995
Whistler Summer
$
11,837,951
$
21,821,871
$
35,051,410
$
68,711,232
Daytrippers
$
2,165,092
$
4,166,693
$
4,566,229
$
10,898,014
Destination
Convenience
Comparison
Food/Bev/Ent.
Total
5%
8%
5%
$
664,877
$
1,797,920
$
1,726,524
4,189,321
5%
8%
5%
$
532,708
$
1,636,640
$
1,577,313
3,746,662
11,013,958
$
9,672,859
$
17,655,178
$
30,485,181
$
57,813,218
$
220,399,648
$
330,599,472
$
586,929,082
$
1,137,928,202
1%
2%
1%
$
1,652,997
$
4,958,992
$
4,401,968
$
33,702,183
$
50,553,275
$
89,749,652
$
174,005,110
3%
8%
5%
$
1,011,066
$
3,791,496
$
4,711,857
9,514,418
$
280,714,824
$
426,946,884
$
750,097,344
$
1,457,759,051
$
3,861,648
$
12,185,048
$
12,417,662
28,464,358
2015
Convenience
Comparison
Food/Bev/Ent.
Total
Whistler Winter
$
18,151,169
$
29,527,252
$
47,332,404
$
95,010,825
Daytrippers
$
1,233,861
$
1,895,261
$
1,637,102
$
4,766,224
Destination
$
16,917,308
$
27,631,991
$
45,695,302
$
90,244,600
Whistler Summer
$
14,544,306
$
26,893,458
$
63,276,076
$
104,713,840
Daytrippers
$
2,660,353
$
5,136,140
$
25,649,276
$
33,445,769
Destination
Convenience
Comparison
Food/Bev/Ent.
Total
9%
15%
9%
$
1,633,605
$
4,429,088
$
4,259,916
10,322,609
9%
15%
9%
$
1,308,988
$
4,034,019
$
5,694,847
11,037,853
24,368,141
$
11,883,954
$
21,757,317
$
37,626,799
$
71,268,070
$
243,814,707
$
365,722,060
$
649,283,896
$
1,258,820,662
2%
3%
2%
$
3,657,221
$
10,971,662
$
9,739,258
$
2,966,249
$
59,395,234
$
105,447,205
$
167,808,687
6%
15%
11%
$
177,975
$
8,909,285
$
11,071,957
20,159,217
$
279,476,430
$
481,538,003
$
865,339,580
$
1,626,354,014
$
6,777,788
$
28,344,053
$
30,765,978
65,887,820
TREC International Inc, 2004.
Retail Strategy
7-8
The total expenditure potential for convenience, comparison and food/beverage and
entertainment calculated does not allow for outflow. Outflow takes into account the fact that not
every dollar of a person's daily expenditure will be at Squamish. As a result, a capture rate is
applied to expenditure potential for each user group and merchandise category spending figure.
This provides a more accurate estimate of what a visitor or market share is likely to spend while
in the District. Table 7.2 summarizes the total annual retail expenditure for the District from
tourists and daytrippers between the 2005 to 2015 period. Appendix V provides more detail on
tourism expenditures for each of the three broad merchandising categories. For 2005, the
targeted capture rate of expenditures ranged from .05%, 2%, and 3%, respectively, (Vancouver
Coast & Mountains visitors’ expenditure on convenience, comparison and food and beverage
items) to about 15% and 19%, respectively by 2015 (Whistler visitors’ and GVRD day trippers’
expenditure on comparison and food and beverage items).
These capture rates are assumed to increase over the 2005 to 2015 period due to the District
embracing tourism to a significantly greater degree than at present, particularly with a stronger
downtown tenant mix and associated waterfront development. These are considered to be
achievable due to the fact that the Vancouver Coast & Mountain region presently does not have
many ‘distinctive waterfront’ shopping/entertainment destinations or factory outlets both of
which typically increase tourist shopping expenditures. Once the District of Squamish becomes
a distinctive destination offering an array an adventure and ‘cultural’ tourism experiences and
shopping, the capture rates that are assumed in this analysis from the tourism user groups have
the potential to be increased. With the addition of the waterfront development and revitalized
downtown core, planned arts/cultural facilities and a more unique tenant mix, Squamish has the
potential to capture a significant share of the approximate $1.6 billion tourism expenditure for
culturally based shopping and entertainment activities.
Although regional estimates from Tourism Whistler were not available, previous studies in the
Vail Valley indicated that tourists accounted for up to 70% of annual retail sales and that
destination tourists spend close to 60% of all the retail dollars captured in Vail itself. It is
important to note that these numbers likely changed since the late 1980’s (when these estimates
were derived), and do not reflect the increasing amount of tourists, seasonal residents staying and
living outside of the Town of Vail. Nevertheless, they provide an indicator of the potential that
tourism can support in terms of shopping and entertainment expenditures.
Given that the relative perceived distance of Squamish from Vancouver, however, the ability of
retail by itself to attract a considerable amount of non-destination visitors is somewhat of a
constraint. Thus, ancillary uses such as an array of unique restaurants/cafes/deli’s, the adventure
etc. are seen as significantly adding energy to the downtown and waterfront development.
attracted to resort towns or tourism destinations for reasons other than retail but on such trips are
prime targets for impulse purchases. As other tourism based communities such as Vail, Freeport,
Retail Strategy
7-9
Although the percentage or market share of the total visitor markets that will visit the District of
Squamish, particularly its downtown and waterfront area, is largely dependent upon the number
and nature of traffic generators, it is assumed that there will be sufficient critical mass of
facilities, attractions, activities, and events to draw visitors, whether from those already visiting
the Sea to Sky corridor to daytrippers from the Vancouver region.
7.4 SUMMARY
as well as specifically the viability of the revitalized downtown and planned waterfront area of
Residents (Lillooet, Pemberton,
Whistler, etc.)
i District of Squamish Winter &
Summer Tourists
i Whistler Destination Tourists
(Winter & Summer)
i Greater Vancouver Residents –
Daytrippers
i Vancouver Coast & Mountains
Region Visitors (not incl. Whistler)
The expenditure patterns and shopping motivations of this diverse range of user groups are quite
different. Thus, the ability for the District to capture a share of these markets will also be a
challenge and will require distinct tenant mixes to tap into a share of the potential sales from
these markets or customer groups. As the level of retail floorspace that can be supported by
resident markets is limited by the existing and projected population levels within the two
trade areas identified for the District, it is the visitor markets that have the greatest
potential to further support additional commercial development within the District.
The percentage of the total visitor markets are expected to increase over the 2005 to 2015 period
due to the District embracing tourism to a significantly greater degree than at present,
particularly with a stronger downtown tenant mix and associated waterfront development. This is
considered to be achievable due to the fact that the Vancouver Coast & Mountain region
presently does not have many ‘distinctive waterfront’ shopping/entertainment destinations
or factory outlets, both of which typically increase tourist-shopping expenditures.
Given the relative ‘perceived’ distance of Squamish from Vancouver, however, the ability of
retail by itself to attract a considerable amount of non-destination visitors is a constraint.
Although this distance will be decreased and perceptions addressed with the highway
improvements, ancillary uses such as an array of unique restaurants/cafes/deli’s, the adventure
etc. will add significant energy to the downtown and waterfront.
attracted to resort towns or tourism destinations for reasons other than retail yet such trips
Retail Strategy
7-10
generate impulse purchases. As other tourism based communities such as Vail, Freeport,
It is important to note that the percentage or market share of the total visitor markets that will
visit the District of Squamish, particularly its downtown and waterfront area, is largely
dependent upon the number and nature of traffic generators that exist and will be provided to
attract these markets. Thus, it is assumed that there will be a sufficient critical mass of facilities,
attractions, activities, and events to draw visitors, whether this is from those already visiting the
Sea to Sky corridor, Vancouver Coast & Mountain tourists or daytrippers from the Vancouver
region.
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7-11
8.0 WARRANTED FLOOR SPACE ASSESSMENT
8.1 INTRODUCTION
This section examines the amount of commercial floor space that holds potential between the
2005 to 2010 period based on opportunities inherent in the Squamish District. In order to derive
total expenditure potential for each retail/service category, those made by both the residents
within the trade areas as well as various tourist and day tripper markets as identified in Section 7
are calculated. The total expenditure potential by retail/service category is summarized in this
section under the warranted floor space projection for the District of Squamish between the year
periods. Next, a market share or estimated capture rate is estimated based on consumer research
results, interviews with major retailers in Squamish and our experience in similar retail
environments. By applying industry sales productivity parameters to the floor space allocation
for the respective merchandise categories, and subtracting the total sales potential from the
supply that presently exists or is planned in the District, an estimate of how much floor space that
is warranted is determined between the 2005 to 2015 time period.
8.2 FACTORS CONTRIBUTING TO ADDITIONAL FLOOR SPACE
There are five key factors that contribute towards the viability of additional specialty or
comparison retail and convenience floor space in the trade areas and target markets identified for
the District of Squamish. These include:
1)
2)
3)
4)
5)
Population growth in the trade areas;
Expenditure growth (i.e. growth in retail spending per capita). In this case, an assumption
that expenditures will continue to grow into the next decade by an estimated average of
1.0% per year, per capita;
Additional inflow or incremental demand resulting from new visitors into Squamish and
Sea to Sky region that will be attracted to the District of Squamish. These include: drive
through visitors; cultural shoppers; destination tourists; visitors to existing attractions in
Squamish; and other potential visitors (e.g. day trippers from Vancouver) as a result of
the new retail and CARES (Cultural Arts Recreation Entertainment, Education & Sports)
facilities, retail and services planned for the area;
A decreased ‘outflow’ from the trade area. In other words, expenditures trade area
residents were historically making outside of the trade area (e.g. Vancouver) but would
expect to make within the District of Squamish; and
Transference of sales from existing retailers. If there are not sufficient sales from the
above mentioned sources to support new development within District of Squamish, it
must transfer sales away from existing competition.
Accordingly, new supply can, in itself, create new retail demand while also resulting in a
redistribution of existing and future sales expenditures particularly if the same type of retail is
added to an oversupplied marketplace.
Retail Strategy
8-1
The retail categories that are particularly relevant for the District of Squamish are those included
in Appendix IV and Table 7.1.
8.3 CATEGORY TURNOVER, MARKET SHARE AND WARRANTED
FLOOR SPACE
To determine the turnover achievable within District of Squamish, a realistic market share is
applied to the expenditure potential of each retail category as identified in Appendix IV and
Table 7.1. In this section, the trade area household and tourism expenditures (from the table in
Appendix IV and Table 7.1) are multiplied by the percentage of the respective markets (i.e.
market shares or targeted capture rates) that are estimated and projected for each trade area and
tourist user groups to be captured to derive the total expenditures by retail and service category.
Accordingly, by using the appropriate industry sales productivity (i.e. performance level) and
subtracting the existing supply of commercial retail floor space (including existing, vacant &
planned as per Table 3.1), the warranted floor space for each category is calculated. This
performance measure is an estimate of what a typical store or restaurant is ideally required to sell
per square foot to justify its operation, pay an optimum rent to the landlord and make a
reasonable profit. The resulting figures indicate whether there are sufficient sales or not for
existing and potential tenants/retailers situated within the communities of the district.
Tables 8.1 and Table 8.2 outline the supportable commercial retail floor space by category for
both the resident and tourism markets that exist and hold further potential for the District of
Squamish. It is important to note that the warranted floor space determined in these tables are
not necessarily the final floor space allocation; it provides a guide to the overall space allocation
subject to the gross build able area based on approvals from the District as well as actual leasing
confirmation from retailers and other major businesses that can be attracted to achieve the
estimated capture rates assumed for the District’s expansion of commercial development. Some
of the highlights of this analysis are reported as follows:
Realistic Market Shares
x In all the retail and service categories planned for District of Squamish, the market
shares required from both the PTA and STA are considered realistic and already
achieved by some of the retailers presently operating within the District.
x The market shares that are illustrated to be derived from tourism and
miscellaneous sources are also easily achieved given the merchandising mix
recommended for the downtown and the effective design and development for the
waterfront area. In fact, these are considered conservative and are expected to be
increased particularly with a strong emphasis on catering and marketing to this
market segment. Effective partnering and packaging with complementary tourist
venues will enhance these projected market shares.
Retail Strategy
8-2
Supportable Floor Space for Trade Area (Resident) Markets
Convenience
x Given the assumed approximately 9,700 sq. ft of floor space allocation, the
majority of this amount is assumed to be utilised for fresh produce, meat, bakery
shops and a small natural foods/co-op market or permanent ‘public or farmers
market’. This latter use may not be viable until closer to the 2010 to 2015 period.
Based on an estimated sales productivity of $450 per sq.ft., a category annual
turnover of $53.4 million was estimated for 2005. This is expected to increase to
approximately 14,250 sq.ft. and almost 25,000 sq.ft. for the 2010 to 2015 period.
Retail Strategy
8-3
TABLE 8.1 WARRANTED FLOORSPACE PROJECTION FOR DISTRICT OF SQUAMISH (2005, 2010, 2015) - Resident Trade Areas
Trade Area Potential ¹
RETAIL CATEGORY
Year 2005**
Food
Household Operation
Home Entertainment Equipment &
Services
Services
Restaurants & Cafes
Total Retail & Services
Year 2010***
Food
Household Operation
Services
Services
Restaurants & Cafes
Retail Strategy
Estimated
Productivity ²
($/sq. ft./yr)
Warranted
Comm.
Floorspace
(sq. ft.)
Existing
Supply ³
(Primary)
(sq. ft.)
Warranted
Size
(sq.ft.)
% of
Total
GLA
Primary
Secondary
Total Annual
Turnover
($)
$94,658,116
$39,063,729
$17,186,747
$24,249,530
$7,986,198
85%
75%
85%
60%
65%
40%
35%
60%
40%
35%
56,398,503
19,861,891
12,147,032
11,690,066
3,738,259
450
350
265
250
275
125,330
56,748
45,838
46,760
13,594
115,647
65,169
59,145
46,175
13,262
9,684
-8,421
-13,307
586
332
0.9%
-0.8%
-1.2%
0.1%
0.0%
$13,750,475
$23,132,485
75%
35%
11,849,174
275
43,088
43,153
-65
0.0%
$11,686,889 $15,859,826
$11,928,508 $16,628,035
$4,734,753
$6,355,264
$10,131,974 $13,556,138
$6,780,242
$9,480,897
$50,472,259 $62,810,667
n/a
n/a
n/a
n/a
$182,214,894 $244,487,365
$27,546,714
$28,556,543
$11,090,017
$23,688,112
$16,261,140
$113,282,927
n/a
n/a
$426,702,259
85%
85%
80%
80%
90%
60%
n/a
n/a
77.1%
35%
35%
35%
40%
65%
40%
n/a
n/a
41.3%
15,484,794
15,959,044
6,012,145
13,528,034
12,264,801
55,407,623
n/a
n/a
$234,341,366
250
225
150
275
175
175
n/a
n/a
260
61,939
70,929
40,081
49,193
70,085
316,615
n/a
n/a
940,200
66,546
67,588
65,051
138,474
149,433
128,998
75,712
56,883
1,091,233
-4,606
3,341
-24,970
-89,281
-79,348
187,617
n/a
n/a
151,033
-0.4%
0.3%
-2.3%
-8.2%
-7.3%
17.2%
n/a
n/a
-14%
Primary
Secondary
$41,189,458
$15,473,965
$7,339,934
$9,951,269
$3,143,632
$53,468,658
$23,589,764
$9,846,813
$14,298,261
$4,842,566
$9,382,010
Estimated Market Share
Total
$43,290,532
$16,263,292
$7,714,344
$10,458,883
$3,303,988
$56,196,094
$24,793,078
$10,349,099
$15,027,616
$5,089,585
$99,486,627
$41,056,370
$18,063,443
$25,486,499
$8,393,574
90%
85%
90%
70%
75%
40%
65%
60%
50%
55%
61,439,917
29,939,299
13,152,369
14,835,026
5,277,263
473
368
279
263
289
129,907
81,389
47,223
56,460
18,259
115,647
65,169
59,145
46,175
13,262
14,260
16,220
-11,922
10,286
4,997
1.3%
1.5%
-1.1%
0.9%
0.5%
$9,860,587
$14,451,887
$24,312,473
75%
55%
15,343,978
289
53,088
43,153
9,936
0.9%
$12,283,037 $16,668,835
$12,536,982 $17,476,231
$4,976,272
$6,679,446
$10,648,806 $14,247,637
$7,126,102
$9,964,518
$53,046,849 $66,014,640
n/a
n/a
n/a
n/a
$191,509,675 $256,958,666
$28,951,872
$30,013,212
$11,655,719
$24,896,442
$17,090,621
$119,061,489
n/a
n/a
$448,468,341
90%
85%
85%
85%
90%
70%
n/a
n/a
82.5%
35%
40%
65%
40%
70%
40%
n/a
n/a
51.3%
16,888,826
17,646,927
8,571,472
14,750,539
13,388,655
63,538,650
n/a
n/a
$274,772,921
263
236
158
289
184
184
n/a
n/a
273
64,277
74,624
54,370
51,035
72,793
345,456
n/a
n/a
1,048,881
66,546
67,588
65,051
138,474
149,433
128,998
75,712
56,883
1,091,233
-2,269
7,036
-10,681
-87,439
-76,640
216,458
n/a
n/a
42,352
-0.2%
0.6%
-1.0%
-8.0%
-7.0%
19.8%
n/a
n/a
-4%
8-4
TABLE 8.1 WARRANTED FLOORSPACE PROJECTION FOR DISTRICT OF SQUAMISH (2005, 2010, 2015) - Resident Trade Areas
(cont’d)
Estimated Market
Share
Trade Area Potential ¹
RETAIL CATEGORY
Year 2015***
Food
Household Operation
Services
Services
Restaurants & Cafes
Primary
Secondary
Total
Primary
Secondary
Total Annual
Turnover
($)
Estimated
Productivity ²
($/sq. ft./yr)
Warranted
Comm.
Floorspace
(sq. ft.)
Existing Supply
³
(Primary)
(sq. ft.)
Warranted
Size
(sq.ft.)
% of
Total
GLA
$45,498,782
$17,092,882
$8,107,852
$10,992,391
$3,472,525
$59,062,656 $104,561,438
$26,057,773 $43,150,655
$10,877,007 $18,984,859
$15,794,174 $26,786,565
$5,349,205
$8,821,730
95%
85%
95%
75%
80%
45%
75%
70%
60%
65%
69,802,038
34,072,280
15,316,365
17,720,798
6,255,003
497
387
293
276
304
140,424
88,129
52,323
64,170
20,591
115,647
65,169
59,145
46,175
13,262
24,778
22,960
-6,821
17,995
7,329
2.3%
2.1%
-0.6%
1.6%
0.7%
$10,363,575
$15,189,077
85%
65%
18,681,939
304
61,500
43,153
18,348
1.7%
90%
85%
85%
90%
95%
70%
n/a
n/a
85.8%
45%
50%
75%
45%
75%
50%
n/a
n/a
60.0%
19,502,235
20,383,865
9,710,719
16,811,285
14,969,731
73,717,960
n/a
n/a
$316,944,216
276
249
166
304
193
193
n/a
n/a
287
70,620
82,014
58,607
55,342
77,439
381,348
n/a
n/a
1,152,509
66,546
67,588
65,051
138,474
149,433
128,998
75,712
56,883
1,091,233
4,075
14,426
-6,444
-83,132
-71,994
252,350
n/a
n/a
61,276
0.4%
1.3%
-0.6%
-7.6%
-6.6%
23.1%
n/a
n/a
6%
$25,552,652
$12,909,594 $17,519,112 $30,428,707
$13,176,493 $18,367,693 $31,544,186
$5,230,112
$7,020,165 $12,250,277
$11,192,001 $14,974,408 $26,166,409
$7,489,605 $10,472,808 $17,962,413
$55,752,768 $69,382,045 $125,134,813
n/a
n/a
n/a
n/a
n/a
n/a
$201,278,580 $270,066,123 $471,344,703
Source: TREC International Inc., 2004
Notes:
1. See Appendix IV
2. TREC International based on Industry Standards, International Council of Shopping Centers, Urban Land Institute, 2004
3. See Table 3.1
*Certain Home Building & Supplies categories are inclusive of service and products and thus evaluated at 66.66% of total figures.
**Assumes Real Rate of Growth @ 1.5% per annum
***Assumes Real Rate of Growth @ 1.0% per annum
Retail Strategy
8-5
Comparison
x Many of the comparison categories are presently in an over supplied situation,
assuming both the Wal-Mart and Home Depot stores are actually completed by
next year.
x This analysis also has factored in all of the existing vacant and planned
developments (e.g. second phase of the Garbaldi Village) which assumes they will
be occupied by operating businesses next year.
x Thus, as some of this development is reported to not open until after 2005, the
stated numbers are somewhat overestimated for this time period.
x It is also important to note that this analysis does not factor in the existing and
potential expenditures from the tourist markets (see next subsection).
x Home building and supplies will be significantly oversupplied when the Home
Depot opens in the next year or two. However, with the increasing supply of
seasonal residents in the Sea to Sky corridor this may not be as significant as Table
8.1 and this analysis reflects.
x Auto sales, parts and operation have an opportunity to be significantly expanded as
much of the expenditure from this category flows out of the District.
Restaurants & Cafes
x With a market expenditure potential of $23.7 million, a category turnover of $14.0
million was derived for 2005 based on a productivity factor of $275 per sq. ft. This
yielded approximately 70,000 sq. ft of floor space in 2005 which is significantly
lower than what presently exists in the District.
x However, as mentioned above, these figures do not account for tourist
expenditures as many food establishments derive a good portion of their sales from
tourists or highway travellers.
Overall, there is an estimated 151,000 sq.ft of oversupplied commercial retail and service space
(existing or planned) in the District in 2005. This is projected to decrease to an estimated
oversupply of 42,000 sq.ft. by 2010 and result in an undersupplied situation of just over 61,000
sq.ft. by 2015. It is important to note that these figures do not account for the tourist expenditures
that many businesses already tap into from this market nor the future potential associated with
tourism. Hence, the next subsection will address this.
Visitor Supportable Retail Floor space
The total supportable floor space for the District of Squamish from tourism is initially calculated
by multiplying the average daily expenditure that each tourism market segment is estimated to
spend by the existing and projected number of visitors by user type (see Table 7.2). Appendix V
summarizes the expenditures by type of retail. This is then divided by an average industry sales
performance measure. The supportable floor space has been calculated separately for
Retail Strategy
8-1
convenience, comparison and food/beverage/entertainment because of the differing nature and
sales performance in these stores.
As detailed in Table 8.2, the amount of additional supportable retail floor space by retail
category and productivity levels for the District of Squamish is outlined for the 2005 to 2015
period. This is summarised in the following table.
Table 8.2 SUPPORTABLE RETAIL FLOORSPACE FROM TOURISM FOR THE DISTRICT OF
SQUAMISH
Retail Category
(A)
2005
Convenience Expenditure Potential
Residual Demand (surplus)
@ $
300 sq.ft.
@ $
350 sq.ft.
@ $
400 sq.ft.
(B)
Comparison Expenditure Potential (sq.ft.)
@ $
250 sq.ft.
@ $
300 sq.ft.
@ $
350 sq.ft.
(C)
Food/Beverage/Entertainment Exp. Pot.(sq.ft.)
@ $
300 sq.ft.
@ $
350 sq.ft.
@ $
400 sq.ft.
(D)
Total Expenditure Potential
@ $
288 sq.ft.
@ $
338 sq.ft.
@ $
388 sq.ft.
Annual real growth adjustment
2010
2015
$ 2,153,547
$ 3,861,648
$ 7,026,919
2,153,547
7,178
6,153
5,384
3,861,648
12,872
11,033
9,654
7,026,919
23,423
20,077
17,567
$ 9,596,338
$ 17,144,040
$ 40,138,162
9,596,338
38,385
31,988
27,418
17,144,040
68,576
57,147
48,983
40,138,162
160,553
133,794
114,680
$ 34,367,978
$ 58,816,392
$ 117,199,223
34,367,978
114,560
98,194
85,920
58,816,392
196,055
168,047
147,041
117,199,223
390,664
334,855
292,998
$ 46,117,863
$ 79,822,080
$ 164,364,303
46,117,863
160,124
136,335
118,722
79,822,080
277,503
236,227
205,678
164,364,303
574,640
488,726
425,246
1%
Source: TREC International Inc, 2004.
Retail Strategy
8-2
Table 8.3 Visitor Supportable Retail Floorspace by Retail Category
Floorspace (sq.ft.)
Retail Category
2005
2010
2015
Convenience
7,178
11,033
17,567
Comparison
38,385
57,147
114,680
114,560
168,047
292,998
TOTAL
160,124
236,227
425,246
Source: TREC International Inc., 2004
8.4 SUMMARY
Table 8.4 outlines the amount of floor space by type of retail/service category that is supportable
for the 2005 to 2010 time period. As noted, there is presently an over supply of commercial retail
floor space that is oriented mostly to local and regional residents. Although not as large as what
currently exists, the Squamish commercial supply will likely remain oversupplied until after the
2010 period. The categories that are mostly in an oversupplied situation include: household
operations; recreation/entertainment services; and restaurants & cafes. This assumes that WalMart will be open in 2005. Once Home Depot is developed and open, the category of home
building and supplies will be oversupplied; this may not be as large as the numbers reflect due to
the increasing supply of seasonal residents in the Sea to Sky corridor. Furthermore, when the
existing and potential tourism expenditures are considered, the latter two categories are closer to
a balanced market.
By 2010, almost 194,000 sq. ft. of retail commercial floor space is warranted in the District
which increases to approximately 485,000 sq.ft by 2015. As previously mentioned in Section 7,
this assumes that the District develops a ‘distinctive’ tenant mix in downtown Squamish and as
part of its waterfront development. The majority of this warranted floor space would be largely
supported by day visitors, travelers to Whistler, and other tourism based markets.
It is also important to note that the warranted floor space determined in this table is not
necessarily the final floor space allocation that can be developed in the district. Nevertheless, it
provides a guide to the overall space allocation subject to the gross build able area based on
approvals from the District as well as actual leasing/confirmation from retailers and other major
businesses that can be attracted to achieve the estimated capture rates.
Retail Strategy
8-3
Table 8.4 Total Supportable Floorspace from Resident & Tourism Markets - District of Squamish
Resident Trade Area
Market Supportable
Floorspace ¹
(sq.ft.)
Supportable
Retail Floorspace
for Tourism ²
(sq.ft.)
Total Supportable
Floorspace
(sq.ft.)
2005
Food
Comparison
Household Operation
Recreation Equipment & Associated Services
Restaurants & Cafes
8,418
9,684
-4,606
3,341
87,394
-8,421
-13,307
586
332
-65
-79,348
187,617
-114,251
-24,970
-89,281
75,712
56,883
7,178
15,597
38,385
125,779
114,560
309
Total Floorspace
2010
-151,033
160,124
9,090
Food
Comparison
Household Operation
Restaurants & Cafes
19,027
14,260
-2,269
7,036
169,335
16,220
-11,922
10,286
4,997
9,936
-76,640
216,458
-98,120
-10,681
-87,439
75,712
56,883
11,033
30,061
57,147
226,482
168,047
69,927
Total Floorspace
2015
-42,352
236,227
193,875
Food
Comparison
Household Operation
Restaurants & Cafes
43,279
24,778
4,075
14,426
240,167
22,960
-6,821
17,995
7,329
18,348
-71,994
252,350
-89,576
-6,444
-83,132
75,712
56,883
17,567
60,846
114,680
354,848
292,998
203,422
425,246
486,521
¹ See table 8.1
² See table 7.2
Total Floorspace
61,276
Source: TREC International, 2004
* Denotes figures are existing floorspace numbers while the rest reflect warranted floorspace
Retail Strategy
8-4
9.0 IMPACT ASSESSMENT
9.1 INTRODUCTION
Based on the relative size and strength of the current retail infrastructure, this section outlines an
impact assessment for the District to highlight the opportunity costs of significant out-shopping
on the local economy. This task uses data obtained through our inventory assessment, consumer
research, warranted development floor space analysis and includes assessments of the costs and
benefits of additional retail/service infrastructure for the community.
This section also identifies the proven ways of how existing merchants can not only survive but
strive in mass merchandisers' and 'big box' environment. This summarizes practical actions,
merchandising, marketing, service, and customer relations tips that have been demonstrated to
work in a Wal-Mart and 'big-box' environment.
9.2 OPPORTUNITY COSTS OF OUT OF SQUAMISH SHOPPING
Based on a series of market research findings and warranted floor space assessment (see Section
8), Table 8.4 outlined the amount of floor space by type of retail/service category that is
supportable for the 2005 to 2015 time period.
As noted, there is presently an over supply of commercial retail floor space that is oriented
mostly to local and regional residents; although not as large, the Squamish commercial inventory
will likely remain oversupplied until after the 2010 period. The categories that are mostly in an
oversupplied situation include: household operations; recreation/entertainment services; and
restaurants & cafes. This assumes that Wal-Mart will be open in 2005. Once Home Depot is
developed and open, the category of home building and supplies will be oversupplied; this may
not be as large as the numbers reflect due to the increasing number of seasonal residents in the
Sea to Sky corridor which was difficult to estimate along with their spending patterns.
Furthermore, when the existing and potential tourism expenditures are considered, the latter two
categories are closer to a balanced market.
Given the above results, the large amount of shopping that historically occurred appears to have
been significantly decreased since the 1990’s with the addition of existing and planned
commercial infrastructure. Although this statement covers most retail and service categories,
there will continue to be ‘outflow’ or out of Squamish shopping in several commercial categories
given the more extensive commercial infrastructure in Greater Vancouver and elsewhere. This is
particularly evident in the auto sales, parts and operation category. The outflow in many
categories (i.e. auto, clothing, home furnishings & entertainment, business and personal services,
education, entertainment, restaurants) will never be totally eliminated as both selection and
pricing (as revealed in the consumer research findings) exert a strong influence in drawing
shoppers outside of the District. Nevertheless as revealed in Section 9.4 and Appendix VI, if
existing merchants embrace many of the tried and proven techniques of how to compete but
Retail Strategy
9-5
thrive in a mass merchandisers and big box environment as well as embrace many of the key
trends listed in Section 2 of this report, this ‘outflow’ can continue to be eroded.
It is also important to note that in certain categories (i.e. household furnishings & equipment,
home entertainment equipment & services, clothing & accessories as well as business and
personal services) the amount of ‘outflow’ can likely be decreased by embracing these
merchandising categories for new warranted floor space much of which is projected to be
supported by tourist and day tripper based market. If these new merchants are well selected
(with effective merchandising and pricing) and located, they hold significant opportunities to
increase the sales of existing merchants.
In brief, the opportunity costs associated with out of Squamish shopping has significantly been
decreased with the extensive addition of commercial infrastructure that has been added in the
District during the last decade. However, there is a strong opportunity to decrease this even more
in certain categories by embracing both existing and potential new markets such as day-trippers,
It is estimated that approximately 23% of the total District’s retail sales potential or at least $41.7
million of sales will continue to ‘outflow’ out of Squamish in 2005. While retail commercial
sales will likely continue to increase, ‘outflow’ or out of Squamish shopping will remain in
several commercial categories given the more extensive commercial infrastructure (with greater
(see Section 10), it is projected that this outflow can be decreased to approximately 17.5% (or
$33.5 million) and 14.2% (or $28.6 million) by the years 2010 and 2015, respectively.
9.3 COSTS/BENEFITS OF ADDITIONAL RETAIL/SERVICE FACILITIES
WITHIN SQUAMISH
The following list highlights the costs and benefits of additional retail and service facilities
within Squamish:
Costs:
x As reported above, millions of dollars of sales continue to be spent by local
residents out of the District; these could be captured by both existing and new
retailers.
x Associated with this ‘outflow’ of dollars is the lost of a number of other direct,
indirect and induced economic impacts in terms of additional dollars that can be
spent in the community as well as employment benefits and taxes;
x As commercial space gets increasingly scarce, it will drive up rents, which in turn
squeezes out many but the lucrative businesses;
x Businesses that cater mostly to local residents such as personal and home services
including stand alone bakery, dry cleaners, shoemakers, plumbers, tailors and
Retail Strategy
9-6
locksmiths typically find it difficult to generate sufficient revenue required to pay
the rent;
x By not capturing retail opportunities, there will continue to be few reasons why
day-trippers, tourists and highway travellers will stop within the District and the
associated loss of revenue and employment benefits;
x As reported in the previous section (Section 8.2), transference of sales from
existing retailers can result if there is a large oversupply of retail/services within
the District. If there are not sufficient sales from the above mentioned sources to
support new development within District of Squamish, it must transfer sales away
from existing competition and hence negatively impact their businesses.
Benefits:
x Millions of dollars hold potential to be captured not only from local and regional
residents but also highway visitors and other tourism based markets;
x By catering to the tourism based markets and day-trippers, spin-offs in terms of
additional business hold significant potential to be accrued to local merchants;
x Additional impacts from land and business development;
x Additional impacts associated with municipal taxes and DCC’s;
x Increased quality of life assuming the additional commercial and services are in
line with local residents’ values;
x Less traffic and commuting to the Vancouver region;
x Local merchants can afford to stay and pay the rents to continue to offer the
needed facilities and services that local residents demand.
The above highlight the costs and benefits associated with additional retail/services within the
District of Squamish. Specific quantitative values associated with many of these can be derived;
however, this is more the subject matter and budget associated with a fiscal and full economic
impact study that is beyond the scope of this current study.
9.4 HOW LOCAL MERCHANTS CAN COMPETE & THRIVE IN A BIG
BOX ENVIRONMENT
Based on extensive practical experience in other small to medium sized communities that has
embraced mass merchandisers and some ‘big boxes’, there are tried and proven effective ways in
competing with these retail giants like Wal-Mart and Canadian Tire. Appendix VI outlines these
that have been found to be effective in both the U.S. as well as throughout Canada based on
experience with other downtowns and shopping centres. Many of these strategies were derived
by Dr. Kenneth Stone, an Economics Professor with the University of Iowa, who worked with us
in adapting his extensive researched based strategies and applying them to the retail environment
here in BC. Although the list that follows has not been specifically tailored to the tenant or
business mix located in Downtown Squamish, most of them are directly applicable to its
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merchants. In fact, some of them are already practiced by some of the successful destination and
specialty retailers that currently exist in the District of Squamish.
The following list summarises how local merchants can compete and thrive in a big box
environment if they:
x Adopt positive attitudes toward the opening of these operations and prepare to
benefit from the increase traffic generated by them;
x Embrace merchandise tips;
x Improve marketing practices;
x Provide superior service can become an important competitive advantage;
x Improve customer relations. Research has demonstrated that poor customer
relations are the primary reason that customers quit doing business with a store;
and
x Continually strive to improve operating efficiencies.
A detailed description of each of the above techniques is found in Appendix VI
9.5 SUMMARY
The opportunity costs associated with out of Squamish shopping has been significantly decreased
with the extensive addition of commercial infrastructure that has been added in the District
during the last decade. However, there is a strong opportunity to decrease this even more in
certain categories by embracing both existing and potential new markets such as day-trippers,
It is estimated that approximately 23% of the total District’s retail sales or at least $41.7 million
of sales will continue to ‘outflow’ from Squamish in 2005. While retail commercial sales will
likely continue to increase, ‘outflow’ or out of Squamish shopping will remain in several
commercial categories given the more extensive commercial infrastructure (with greater
(see Section 10), it is projected that this outflow can be decreased to approximately 17.5% of the
potential retail sales (or $33.5 million) and 14.2% (or $28.6 million) by the years 2010 and 2015,
respectively.
Some of the major costs and benefits of additional retail/service infrastructure for the community
can be summarised as follows. The costs of providing too much retail/service in the community
will cause a negative impact on existing retailers in the categories that are identified as being
oversupplied. However, by embracing tourism and tapping into other markets such as daytrippers and seasonal residents, many of the perceived oversupplied categories can be
embellished and provide spin-offs to existing merchants. Not tapping into the latent demand that
presently exists would deter the District and many of its merchants from millions of dollars of
potential revenue plus the associated tax and employment benefits. In the long term, if the
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commercial floor space in the District is constrained, the resulting increased in rents typically
squeezes out many but the most lucrative businesses. Businesses that cater mostly to local
residents such as personal and home services including a stand alone bakery, dry cleaners,
shoemakers, plumbers, tailors and locksmiths typically find it difficult to generate sufficient
revenue required to pay the rent. In addition, for many local residents, quality of life benefits are
negated such as being a more self-sustainable community to avoid having to leave the
community to acquire their needed products and services.
With the completion of Wal-Mart, Canadian Tire and Home Depot, the previous section has
documented that the District is already saturated in many retail categories. Nevertheless, there is
an opportunity to replace or work with some of the existing lesser quality tenants to upgrade and
meet the selection, pricing and quality of merchandise that is demanded by both local and
regional residents. In addition, there is a significant market opportunity to supplement the
existing commercial mix with tenants that cater more to the tourist and day-tripper markets.
Previous research has also revealed that there are a number of tried and proven techniques
available to local merchants where they can not only survive but thrive in mass merchandiser’s
environment. These include: adopting a more positive attitude and preparing to benefit from the
additional traffic that is generated by them; embracing better merchandising and marketing
practices; providing superior service, improving customer service and continually striving to
improve operating efficiencies.
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10.0 MERCHANDISING & TENANT MIX PLAN
10.1 INTRODUCTION
This section outlines the retail and non-retail/service commercial uses as well as other
community uses that are considered appropriate within the District of Squamish and the
downtown core. The uses are identified based on several merchandising objectives that form the
underlying foundation of the tenant mix plan prepared for District of Squamish. The amount of
floorspace by retail/service category for each of the major commercial areas within the District
and approximate time period to avoid saturating the market is also provided in this section.
10.2 MERCHANDISING OBJECTIVES
The key merchandising objectives and strategies underlying the proposed tenant mix plan for the
District of Squamish and downtown core are based on examining the following:
x Inherent market opportunities and “voids” that are found to exist from the
competitive assessment (see Sections 3 & 4);
x Needs, preferences and lifestyles of existing shoppers to District of Squamish
integrating findings from the Point-of-View survey (see Section 5);
x Socio-economic/demographic and lifestyle characteristics of other trade area
residents (see Section 6);
x Similar characteristics of visitors and tourists that presently visit the Whistler and
Sea to Sky region including reasons why they visit the region and the recognition
of many visitors being cultural tourists identifying what they seek in terms of
CARE facilities, events, and attractions (see Section 6);
x Market expenditure levels including those from trade area residents, day visitors
and tourists (see Section 7);
x Warranted retail/service floorspace assessment (see Section 8);
x Current and future retail, tourism, recreation, cultural/arts, and leisure trends
affecting the shopping environments based on an extensive review of shopping,
and tourism literature (see Section 2);
x Specific retailer demand for new locations, particularly as they relate to their
expansion plans for District of Squamish.
The key merchandising objectives are summarized as follows:
x To maximize activity downtown and corresponding sales to existing and potential
merchants as well as leasing revenue to building owners;
x Provide an ‘one stop’ shopping destination for many convenience, ‘lifestyle’, retail
and CARE goods and services;
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10-1
x Provide retail facilities and services at one location that, in terms of product mix,
selection, value, and atmosphere, are unique in the Sea to Sky corridor and in one
or two merchandising formats, potentially throughout the southwest region portion
of the province or Province as a whole;
x Become a regular shopping destination for value driven patrons for trade area
residents as well as a special entertainment location or ‘event’ destination like
Whistler, and Granville Island;
x To extend the length of shopping visits and extension of the downtown’s activity
cycle, thereby providing the opportunity for enhanced expenditures per visit;
x Create a retail and non-retail offering sufficiently large and dominant such that
they complement and are differentiated from the existing and planned competition
identified in Section 4;
x To position and integrate the tenant mix in such a layout for optimum circulation
as well as enhance the retail potential of individual tenants through synergistic
interaction;
x Attract both strong regional and national retailers, entertainment, and restaurant
operators or concepts that are unique to the Squamish market as well as add to the
destination appeal of the revitalized downtown core and waterfront area;
x Establish a new shopping and ‘social’ destination by adapting emerging trends in
retail, hospitality, and tourism where patrons are seeking value lifestyle
merchandise with superior service set in an entertaining and
educational/interactive environment.
10.3 MERCHANDISING STRATEGY AND TENANT MIX PLAN
Based on a series of market research findings, a total of approximately 9,000 sq. ft. of
commercial retail floor space is viable for the District of Squamish in 2005 assuming Home
Depot, and Wal-Mart is developed and opened. As identified in Section 8, almost 194,000 sq. ft.
would be warranted by 2010 and an estimated 486,000 sq. ft. by 2015.
The commercial areas of District of Squamish are recommended to be
merchandised according to the following seven merchandising subthemes
reinforcing the overall experiential/arts/lifestyle and nautical theme for the
District of Squamish:
1.
2.
3.
4.
5.
6.
7.
Convenience/services;
Fashion/sporting apparel, recreation equipment & accessories;
Office, communications & electronics;
Home furnishings, accessories & gifts;
Wellness/health & personal care products and services;
Restaurants, take away; and
CARES facilities.
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It is further recommended that these seven merchandise categories are positioned within the
District of Squamish’s established and planned waterfront commercial areas with a focus on the
downtown and incorporate the following key principles:
x Present a clear and strong image on the exterior of the stores reinforcing the
‘brands’ and value being offered within the overall downtown;
x Anchors to draw customers laterally throughout the downtown;
x Attract anchor tenants that have strong street formats
x Encourage parking patrons to enter the district that provides them with the most
convenient location and draw them to other districts (see Petaluma & Tiburon
Photos);
x Diversity and authentic ‘main street’ or downtown shopping experiences are
increasingly being sought by consumers as many are growing tired of the
‘sameness’ of the mall experience;
x Cluster tenants that carry similar merchandise together to entrench clear
perceptions in patrons’ minds and reinforce the convenience aspects of ‘one-stop’
shopping for these categories;
x Ensure that the commercial in the waterfront area incorporates unique design
features and animation to ensure it truly becomes an attraction and popular ‘social’
destination in its own right. This should also include way finding and place
making features helping to create an ‘experiential’ ambiance.
Recommendations for each of the seven subthemes selected for each of the major commercial
districts identified for District of Squamish are detailed as follows:
Banff, AB
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Petaluma, CA
10-3
Banff, AB
Canmore, AB
1. Convenience/services
Convenience retail and related services are
recommended to comprise between 7,200 to 17,500
sq. ft. of the District’s new warranted floorspace and
include tenants such as the following:
x A natural foods market or co-op with roll
away doors to allow tenants to spill into the
outdoors (see photo 7);
x speciality wine/beer/liqour store;
x candy, fudge, goodies, bakery type stores;
x old general store or diner featuring take-out
food, ice cream, coffee, etc. all in a
replicated, nostalgic atmosphere (see photo 8)
;
Photo 7: Public Market near Troy, MI
x personal services such dressmaking/tailoring,
laundry/dry-cleaning, video rental, etc.
The majority of this category floorspace is
recommended to be positioned within the downtown
core. Given that the downtown already has a liquor
store, a specialty store catering more to tourist and
highway travellers holds potential to be located either
in the Business Park or the Garbaldi Village areas. The
co-op market or permanent ‘farmers market’ in
particular holds significant potential to become a
strong social gathering place (see photo 6) and help
anchor the downtown.
Retail Strategy
Photo 8: Nostalgic diner/ice cream parlour situated on the
main street of St. Helena, CA
10-4
The overall category is recommended to comprise
approximately 70,000 of the additional total floorspace
identified to be viable for the District of Squamish between
2010 and 2015. Depending on the uses and tenants, this
category holds potential to be possibly expanded and brought
into the market earlier than 2010. This category holds the most
appeal for the downtown and factory outlets either in the
business park and/or the downtown/waterfront area. It is
further recommended to be comprised of the following types
of tenants:
x A value anchor offering ‘brand name’ apparel with
strong regional
recognition;
or
national
and
international
x This ‘brand name’ has the potential to be either a
medium sized box store such as Winners or factory
outlet retailers such as Far West, North Face, Helley
Hanson, etc;
x A large outdoor recreation equipment manufacturer would also be very
instrumental in tapping into this expenditure category while helping to anchor the
downtown or waterfront development;
x A series of mini-anchors of a lifestyle nature offering ‘brand names’ and/or unique
quality crafted merchandise such as jewellery (see photo 9) at factory outlet prices;
x A dominant retailer(s) focusing on casual/leisure apparel, body care and
accessories;
x A series of smaller speciality tenants that complement and add to the mix offered
by the above tenants;
x A cluster of moderate/moderately high priced boutiques or larger value chain can
be positioned downtown that can provide variety, quality and selection to both
trade area residents and visitors alike;
x These types of stores and services will strengthen and expand the existing tenants
in this category.
The medium sized ‘big box’ should be positioned with exposure onto the Highway and capitalize
on the available space that is already approved. Alternatively, some of the larger spaces
downtown could accommodate this use and help anchor it or incorporate factory outlet tenants
into its fabric. Accordingly, the value orientation or brand name recognition will engender
immediate recognition and has the potential of patrons to choose the core for its visits.
Furthermore, the price benefits will bring a significant increase in the number of trade area
residents to visit District of Squamish for their shopping needs. With proper signage, these
shoppers can be drawn into the other precincts. This same principle applies to some of the other
merchandising themes that lend themselves to megastores and/or name brand factory outlets such
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10-5
as communications (e.g. Telus/BC Tel), electronics/tech-tainment (e.g. Future Shop, London
Drugs), books/music, etc.
3. Office, communications & electronics
This category is recommended to be comprised of
approximately 5,000 to 7,300 sq.ft between 2010 and 2015.
The following guidelines are further recommended:
x An office supply and/or music/CD’s (e.g. Future
Shop) megastore anchor that has excellent street
presence (i.e. signage and storefront display). It is
recommended to have transparency to allow passing
traffic to see into the store with a well lit exterior.
x Ideally, this office supply/music store should be at a
prominent location to draw patrons to one of the
districts while acting as another anchor for the
majority of tenants in this category that are
recommended to be positioned nearby to draw
customers to adjacent districts
x A photo store that can be combined with other
complementary merchandise and have a ‘popout’
display or sign to capture interest (see photo 10);
Photo 10 – Chatham, ON
x Some of these tenants may also have a factory
outlet store with a coffee bar to reinforce the value and ‘one-stop’ shopping appeal
of this communications and tech-tainment precinct (e.g. Bose outlet, Radio Shack
– see Photo 11);
x Stores such as the Telus and/or BC Mobility premises have the potential be
generating significantly
merchandising.
more
excitement
in
terms
of
storefronts
and
x A central communications desk in a store with a series of internet stations and café
modelled in a rec.-room setting would also encourage patron to linger longer at
this part of the downtown.
4. Home furnishings, sporting goods accessories &
gifts
Another integral component reinforcing
the lifestyle appeal of the merchandisings thrust for
the District of Squamish is tenants in the home,
garden, and kitchen categories. This category could
also include arts/crafts galleries and workshops, bath
shop, linens & beddings, country furnishings, interior
design & functional art accessories, speciality
hardware and speciality gifts.
Retail Strategy
Photo 12: Decorative street art supplied by local merchant.
Old Scottsdale, AZ
10-6
Some of the artisan or gallery type tenants
could be encouraged to display their products
as part of the street furniture. (See photo 12).
This category is estimated to have
approximately 10,000 to 18,000 sq.ft.
between 2010 and 2015 and be largely
incorporated into the downtown with the
following components:
x A
major tenant featuring home
accessories, kitchen ware, linens, wall
ornaments,
functional
artware,
decorative items, gifts, etc.
x A garden home shop featuring distinctive yet affordable garden furniture, plants,
garden accessories, etc. (see photo 13
& 14);
x A
‘one-stop’ decorating centre
featuring custom draperies, wall
hangings/accessories, wallpaper, and
other wall/interior design fixtures and
services (workshops, classes, etc);
x Several
major tenants may be
complemented with a series of smaller
stores or integrated in one store format.
x Existing stores that have become a long
time destination are recommended to
be
‘reinvented’
by
providing Photo 13 & 14, Berkeley, CA
interpretative displays of some of their
merchandise as part of their storefronts as well as having merchandise spilling out
into the street environment (see photo).
5. Wellness/health & personal care products and services
With approximately 20,000 sq. ft of floor space by 2015, this component is envisioned to be
comprised of two main parts:
Health/personal care products such as optical wear, additional products for the tourist market,
and other specialized ‘lifestyle’ supplies including hand made soaps, lotions, etc; and
x A series of specialized health and personal care services.
x The major types of tenants are recommended as follows:
x An Alternative Holistic Centre featuring traditional Chinese medicine, natural
healing, acupuncture, herbology, etc. The Alternative Holistic Centre also has the
potential to be strengthened with an educational facility such as an Institute of
Alternative Medicine or Holistic Health;
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x Both a destination spa and day spa featuring both products and spa services are
also recommended as part of the downtown and waterfront area.
6. Restaurants, take away
With the exception of the food element of the
recommended natural foods market or co-op, this
merchandising category is expected to be
interspersed throughout the downtown and
represent approximately 70,000 to 150,000 sq. ft.
of the District’s overall new warranted floor space
between 2010 and 2015. As outlined in the
Squamish Waterfront Concept Plan, sidewalk
cafes and having other venues spilling out into the
channel or water environments should be
encouraged.
The major components of this
category are as follows:
Marche Lino Bakery/Deli, Toronto, ON
x A major restaurant operation incorporating elements from Movenpick’s Marché
Restaurant or their smaller operation named Marché Lino (see Photo 22);
x A casual family style restaurant operation(s) like Cactus Club, Eastside Mario’s,
Cheesecake Café, etc;
x Coffee/deli or speciality bakery/cafés are recommended to be positioned along the
waterfront;
x Several fast food type operations that have the potential to be integrated into
existing and planned operations in the form of a ‘take-out’ window.
7. CARE (Cultural, Arts, Recreation, Entertainment & Educational) facilities & services
Comprised of approximately 50,000
to 80,000 sq. ft. of the total
warranted new floor space between
2010 and 2105, this merchandise
category is recommended to be
positioned
primarily
in
the
downtown and waterfront areas.
These types of venues will be best
targeted to youth, families, and
tourists who are middle aged and
mature travellers. Potential tenants
and concepts for both existing
vacant space as well as future new
floorspace include the following:
Photo 23
x Attracting an avant garde live theatre group;
x This venue could be used for various community functions and events while live
theatre are not taking place
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10-8
x Adjacent tenants that would provide cross selling opportunities include a
dessert/bakery operation, bookstore, music/CD store, etc. (see photo 24);
x A live dinner theatre operation may hold
potential in the five to ten year period
once Squamish matures as a visitor
destination
x The entertainment component of the
downtown can be complemented with a
family amusement operator like Space
Port, Virtual World or similar operation to
cater more to the teenage/young adult
market;
x Similarly,
a skate park, Science &
Discovery Centre near the Park or
waterfront can be used as a ‘youth care’
while
parents
shop/dine/entertain
downtown;
x A newer style bowling alley or
entertainment facility with features incorporated in places such as Red’s (operated
by the Brunswick Co.) or the smaller facility located at the Chateau Lake Louisa see Photos.
x An authentic ‘nautical/forestry discovery centre’ with interactive and participatory
exhibits and showcases featuring local manufacturers products holds potential to
become another CARE attraction
within the community. A culinary
institute and design school are
other uses that could be part of this
complex.
x A major community facility such
as the planned arts & performance
centre would also add patronage to
the downtown while providing a
facility that would add to and
complement those existing in the
District.
In addition to the above categories, there is a significant opportunity to further develop the
automotive sales, parts and operation/service. This use is most appropriate in other outside
commercial/light industrial areas and away from the downtown core. In fact, the existing
dealership and automotive repair uses should be relocated and replaced with more high profile
retail uses that would further entice tourists to enter the downtown area of Squamish. While the
business park land may be too valuable, there may be alternative sites to house larger car
dealerships if other higher and more valuable uses are not identified. Although up to an
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estimated 250,000 sq.ft of commercial space is warranted, in all like hood a fraction of this could
conceivably be developed.
10.4 SUMMARY
The main retail and service categories that were identified to be warranted for District of
Squamish are recommended to be merchandised according to the following seven subthemes
reinforcing the overall experiential/arts/lifestyle and nautical theme for the downtown and
waterfront areas with some holding potential for the other commercial areas:
1. Convenience / services such as a natural foods market, private liquor store,
permanent farmers’ market and personal services such as video rental, dry-cleaning,
small convenience store(s), etc;
3. Office, communications & tech-tainment such as office supplies, music/electronics,
telephone, accessories, etc;
4. Home furnishings, accessories & gifts;
5. Wellness/health & personal care products and services;
6. Restaurants, take away; and
7. CARE (Cultural Arts Recreation and Arts) facilities
In total, an estimated 486,500 of total floor space can be incorporated into the District’s five
commercial areas by 2015. While much of this space will not be warranted until significant
improvements are made to attract more tourists into the community, if the right tenants and uses
are selected, there is strong potential to draw the existing day-trippers and destination tourist
markets into the downtown core earlier than 2015. Examples of retailers that hold potential in
this regard are unique quality oriented one of a kind type shops in some of the above categories
as well as factory outlets. This would then stimulate additional traffic to existing shops and
services as well as for the restaurants/take-away and
health/wellness categories. In addition, there is an
opportunity to attract additional businesses catering
to automotive sales, parts and operation in areas
outside of the downtown.
Independent factory outlet store in Canmore, AB
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10-10
Appendix I:
Review of Retail Trends & Tourism Characteristics
Retail Strategy
Appendix I
Review of Consumer Trends
Consumers are Getting Increasingly Optimistic about the Future.
x According to the Urban Land magazine, retail sales growth has been extremely
strong in recent years, rising by 8.2 percent in 2000 over 1999.
x Restaurants began a major rebound in the last several quarters of 2001.
Diversified Retail Demand Among Resort Visitors
x Day skiers typically spend very little on entertainment, and their support for eating
and drinking establishments and retail merchants are similarly minimal. On the
other hand, the destination skiers’ consumption habits generate a high sales
volume for entertainment. This finding re-emphasizes the importance of reintegrating retail spaces with entertainment and recreation in the District of
Squamish.
Consumers are Rewarding Themselves with “Small Indulgences”.
x
To satisfy emotional fixes, and indulgence of the senses and allow ego
expression, consumers are seeking self-gratification from smaller (“quality”)
purchases such as:
x Fine accessories such as quality sunglasses, super insoles for ski boots, hats,
scarves, belts, hiking/walking shoes, premium quality toiletries or soaps, etc. are
also on target with this trend.
The Beginning of the New Millennium is the Age of ‘Personalization’ i.e. Ergonomics.
x The store or restaurant that enables each customer to feel unique are doing extremely
well. Many arts and crafts stores located in well-established resorts such as Banff and
Lake Louise along with Marché Lino (a market style bakery/café) or the Marchéc
Restaurant both operated in Canada by Movenpick provides this to their consumer.
Stores such as Sure Foot at Whistler Village is another example of this particular
trend.
x Not only must the product/ or service be of quality nature, consumers are being
exposed and increasingly demand ‘experiences’ from retail, restaurant and
entertainment.
Personalized Service is Essential
x For example, Levi Strauss and Co’s has now offered more personal attention to
their customers by offering made-to-order personalized pair blue jeans, which are
manufactured to the customer’s measurements taken at a retail boutique.
x Accordingly, significant opportunities are also available with respect to items and
services that make people feel and look better (health spa, day spas, fitness center)
provide laughter (i.e. places to socialize, dinner theaters, etc.), provides fun or
makes the consumer feel like a kid.
Retail Strategy
Appendix I - 1
Diversified Retail Demand Among Resort Visitors
x The profile of typical visitors at Whistler are quite diverse and with varying
expenditure patterns. In addition to hotel guests and short-term visitors, District of
Squamish will also attract a large number of destination visitors.
x Resorts visitors, as opposed to residents show widely varied expenditure patterns.
Typically, their spending habits for food and beverage expenditures are higher
while other categories are slightly lower.
Customers Demand for “Value” in their Retail & Restaurant Offerings
x It is okay now to be a bargain hunter and shop at such stores, visit factory outlets,
nevertheless, people still like to purchase designer labels and brands; however,
they do not want to pay the full amount.
x Consumers are increasingly shopping at these ‘bargain’ type stores so they can
spend more dollars on educational, restaurant, travel, entertainment, new electronic
items and generally more from fulfilling products, services and experiences.
Products or Retail Stores Trends
Career Casual Wear
x The career casual look that is neater and more tailored have become a popular trend
which include sweaters, pants and accessories.
x In Banff, Lake Louise and Whistler international brand names, Canadian made
styles and western fashion are popular.
Shopping is Becoming More Aligned with Entertainment
Integrating Retailing with Services
x Retail within small towns such as Squamish today are more three-dimensional and
interactive. If designed right with an interesting mix of tenants, customers will be
more interested in exploring the shops and the items.
x The future of stores will not only be about what they look like, but how stores act
and what they do.
x The Foodland Supermarket Chain, for example was designed to be a fun-filled
family marketplace and not just a place to shop for your groceries. The market
offers customers a form of ‘edu-tainment.’ In other words, the store provides menu
choices rather than simply providing endless aisles of groceries. When a customer
goes to the store to buy mangoes, they can find an in-store demonstration on how
to make mango chutney.
Retail Strategy
Appendix I - 2
Authentic Themed Retail
x The layout must be simple for visitors to locate particular stores while, feeling
oriented and comfortable. A good layout plan should also maximize sales space
and provide maximum exposure to the tenants.
x Theming can strongly influence the design and consequent appearance of parts of
the retail environment. It largely involves architectural theming, with the theme
applied to finishes and fittings; the theme can often be extended to include
merchandise and tenant mix.
x In the case of the Parisian Mall at West Edmonton, the theme is a street of the
French capital, while the tenants within the street have facades that resemble a
French architectural design. While in St Jacobs, Ontario, the retail village
incorporate stores within heritage farm structures and actually designed a factory
outlet as part of a replicated barn, as a way to enhance the experience of visitors.
Concept of Bringing the Outside into the Inside
x On a large scale, customers may detect a distinctive, rushing water or other natural
sounds throughout the waterfront or downtown space, which resemble the natural
environment surroundings of Squamish.
x Another example to point out is the PGA Tour store, which realistically mimics a
PGA golf course, where the store is interactive, educational and entertaining. The
design of the store emulates an outdoor feel, featuring an enormous rotunda with
an authentic putting green accompanied by bridges, rocks and a babbling brook.
The color palette uses lighter wood and high-tech finishes including: brushed
aluminum and an articulated tile flooring design that resembles a golf course cart
path.
New Ways of Operating Restaurants
x In Kringlan Mall, located in Reykjvik, Iceland, the restaurants cannot be
overspecialized due to Iceland’s small population.
x Therefore, the restaurants in the mall transform themselves throughout the day
from a coffee shop, to a luncheon bistro, to a white-tablecloth restaurant serving
Icelandic delicacies such as reindeer, puffin and whale.
New Tastes for Restaurants
x Generation Y (1-20 years) is known by marketers to be attracted to healthier
menus, or green products, thus some of the tenants are recommended to offer
healthier menus as a potential option for future food service.
Placemaking and Placekeeping
x In order to continue to attract customers and to maintain tenant satisfaction, resort
District of Squamishs are scheduling a more complete calendar of events. Thus,
the common spaces in the District of Squamish should be designed as suitable
venues to host programs and performances.
Retail Strategy
Appendix I - 3
Hi-tech in Retail:
x On a large scale, some resorts have integrated video walls. (e.g Canyons near Park
City) whereas some stores incorporate these within the stores themselves.
x The introduction of in-store web kiosks have been incorporated in some retail
stores in the US, which will be able to show a wider line of merchandise than they
could physically display.
x Technology is now being used to create interactive entertainment networks within
the shopping environment. These networks are able to bring live performances and
events to the customers as they shop.
The Impact of the Internet on Entertainment Retailing
x What the internet cannot deliver to consumers that retail District of Squamish can,
is provide experiences for their visitors.
x Creating experiential places will be able to compete against the rise of e-
commerce. Providing entertainment in retailing is what is going to retain
customers.
Future Trends of the 21st Century:
x The emergence of ‘Generation Y,’ the largest generation ever in the history of the
US, will dominate the consumer population. This new young adult population
regards shopping as a lifestyle pursuit.
x The aging baby boomers, are reaching a time in their lives, when comfort, quality
and escape are important factors and considerations in their lives.
x Live performances such as musical theaters and concerts will be vital in the future.
x Person-to-person service will gain importance as a strategy to retain customers.
x As the internet will provide more convenience items, this will allow consumers
more time to focus more on leisure goods.
x Consumers will seek experiences that will become part of the shared memories of
their family, friends, and professional associates.
x Daytime escapes in the form of short leisure trips at a nearby urban resort or small
authentic downtown seeting of Squamish will become a trend.
x Grocery stores, with ready-made meals, gas stations with ATMs: examples point
to the continued packaging of products and services into combined formats that
deliver better convenience for the consumer will continue to be a popular trend.
Retail Strategy
Appendix I - 4
Appendix II:
Factory Outlet Retail Industry Overview
Retail Strategy
Appendix II
FACTORY OUTLET RETAIL INDUSTRY OVERVIEW
The majority of the following material on the overview and background of the factory outlet
industry was summarized from an in-depth market update report (dated June 2002) that was
prepared by Merrill Lynch Global Securities Research & Economics Group.
x As a background, factory outlets in the US have been a retail format since the
1970's when the Vanity Fair Corporation opened the first multi-tenant outlet in
1970.
x In Canada, factory outlets did not arrive as a retail format until the late 1980’s. All
of the factory outlets to date have located in the Eastern Provinces.
x Outlet centres with a high critical mass, good tenant mix and location tend to have
a higher degree of franchise value in their trade areas than shopping centres,
except the best regional malls. Outlet stores that lack these characteristics are
struggling.
x Outlet stores are the only retail channel where manufacturers control the pricing,
display and location of their merchandise. Outlet stores are very profitable for
manufacturers.
x Developers got carried away and built too many outlet retail centres in the US and
have paid the price.
x Weaker outlet centres with second-rate tenants and poor sales that account for
almost 55% of the industry in the US are struggling for survival.
x Outlet centre same-store sales have decreased in each of the years 1999 - 2001.
Same store sales mean the sales that are monitored on an annual basis for the
“same” store on a repeated basis. For example, sales for the Nike factory Outlet
store chain would be monitored on an annual basis for this chain and compared for
this same store on a repeated basis.
x The number of outlet stores has decreased by 20% from its height in 1996. Figure
II displays the number of outlet stores in the United States.
Retail Strategy
Appendix II -1
Figure II: Number of Outlet Centres in the US, 1987-2002
Number of Outlet Centres, 1987-2002
350
300
250
200
150
100
50
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
19
88
0
Source: Value Retail News & Merrill Lynch, 2002
x Outlet centres built in recent years have tended to be bigger than the norm and
many older outlets have expanded.
x It is only the small outlets (less than 200,000 square feet of Gross Leasable Area
(GLA)) that are being wedged out of the industry. They are often too small to
reach critical mass, offer fewer brand name stores to generate shoppers and are
located in a sparsely populated area. They are also vulnerable to the threat of
value-retailing formats.
Negatives among the outlet industry
x Value retailing (such as discount department stores, super-centres, warehouse
clubs, category killers, off price apparel chains) is a threat to the outlet industry,
which has a reputation as the discount retail channel. This is due to the fact that
they are increasingly offering discounted pricing for many categories of ‘brand
name’ merchandise.
x Certain outlet operators have brought in non-manufacturing stores such as
Winners, Bank of Montreal, Battery Plus, Michael’s Arts & Crafts, etc, which has
caused a distinction problem between retailing formats.
x Instead of selling their excess inventory at regular stores at discount, factory
manufacturers usually sell these goods at 30-70% off at their factory outlet stores.
x Consumers find that markdowns are not as large as they used to be and usually
shop at centres where markdowns are consistently lower and offer a broad range of
items.
x Centres where rock-bottom prices are in effect are hit-and-miss because they do
not generally offer a wide rage of items.
Retail Strategy
Appendix II -2
x Middle priced- brand name apparel and home goods are sold regularly at varying
markdowns at discount department stores, supercentres, and family stores and so
on.
x Traffic and sales best identify gauging success of outlet centres, even though
consumers may think or say differently.
Positives among the outlet industry:
x Even though outlet centres are declining there are some that are thriving:
x Sales of the top 15 or 20 outlet chains exceed $400 a square foot, and therefore
comparable to class A malls.
x While the total number of outlet centres is dropping, the industry's total square
footage has been steady and has about the same since 1997.
x Many of the premier retailers such as Gucci, Fendi, and Chanel etc. have recently
opened stores in outlet centres.
x Many of the newer outlet centres garner sales over $420 a square foot, while
average smaller centres average $365.
x New designer names are appearing at a high rate amongst outlet centres. They
prefer to inhabit the dominant centres first as a test for success.
x Thus an outlet centres' largest competitive position is largely unaffected by the
potential threat of new centres.
x Few new outlet centres possess Return on Investments (ROIs) that are
substantially higher than conventional shopping centres. This can be attributed to
the lower cost of construction and land, as well as increased customer appeal by
upgrading their presentation and design.
x Outlet centres have lower occupancy costs (i.e. sum of tenant’s fixed rents,
percentage rents, and add-ons which is also called total rent) than conventional
malls because they are open air and have no anchor tenants requiring
subsidization. Occupancy costs for outlets are usually 7-9% of sales while
shopping centers possess 11-15%.
x Sales volumes at the better performing outlet centres are less susceptible to
economic downturns primarily due to having a strong quality based tenant mix.
Their key to success lies with the fact that they have gained dominance in their trade areas
through the size or mix of desirable and unique tenants. Below are facts that give evidence to
their success:
x Sales at the top 20 outlet centres exceed $240 a foot, and have continued to grow
at 3 to 4% a year even through the rough times
x US’s premier brands such as Dolce & Gabbana, Furla, etc. have recently opened
their first outlet stores with sales at approximately $500 per square foot.
Retail Strategy
Appendix II -3
x Several new outlets that have been built since 1999 are garnering sales over $400 a
square foot.
x Four keys to the top performing outlet centres:
1. Most have a tenant mix with upscale, name brand merchandise.
2. They are big enough to attain critical mass including a nice roster of clients
that attract customers.
3. They are situated near densely populated trade areas or have a significant
tourist base.
4. They are located on or near major interstate highways providing accessibility
to a number of areas.
x Of the four keys the one that seems to contribute most is the tenant mix and brand
names. The most popular brands are renowned for higher quality products and
styles and overall consumer satisfaction.
x The North American loves a bargain, especially when it involves a brand name.
x Value-retailing's huge growth is a threat to the outlet industry's image of the retail
centre of unbeatable prices. Competition is very strong among the value-retailing
formats which are quick to offer the lowest prices.
x While there are many definition of value-retailing depending on different tenant
mixes, it usually encompasses everyday-low-prices, large assortments of in-stock
merchandise and branded merchandise with a reputation for high quality.
x According to Merrill Lynch, 2002, value-retailing’s market share of total non-auto,
non-food retail sales has jumped from 4% in 1981 to 40% today.
x Many conventional stores and retailers such as department stores, etc. have
accepted value-retailing practices to stay competitive.
x Thus, with mostly all retail endeavors willing to remain competitive, the
distinction between value-retailers and all other retailers is blurring.
x Many other retailers began to produce their own "outlet" stores where they could
also sell their out-of-season fashions, damaged goods, and closeouts. Retail
divisions such as Saks Off-Fifth Avenue, Brooks Brothers' Outlet, and Ann Taylor
Lofts today account for approximately 15 to 20% of the outlet industry's collective
tenant base.
x Recently, the proliferation of Value Mega Malls has penetrated the market offering
a combination of factory outlets, retailer's outlets, off-price, and big box
merchants. Such examples include:
¾Great Lakes Crossing, Auburn Hills, MI
¾Ontario Mills, Ontario, CA
¾Super Mall of the Great Northwest, Auburn, WA
Retail Strategy
Appendix II -4
¾Sawgrass Mills, Sunrise, FL
¾Franklin Mills, Philadelphia, PA
x Mills' style projects differ in three major aspects from outlet centres.
1. Traditional manufacturers' outlet stores make-up about one-third of the total
GLA in the Mill's style Mega Malls. The other two thirds are made up of
discount department stores, category killers, some full-price retailers and
entertainment operations (i.e. restaurants, entertainment venues such as Dave
& Buskers, Sega, etc).
2. Operating economics: Mill's style Mega Malls are more expensive to build
and occupancy costs for in-line tenants tend to be higher than in outlet centres.
3. Mills Mega Malls are also entertainment driven.
There are four trends that will be apparent among the outlet centre industry in the next few years
4. The number of outlet centres may shrink another 20-30% before stabilizing.
5. The top performing centres should out-perform every other kind of shopping
centre. The onset of new brands will continue to bring success.
6. An increasing number of dominant centres will fall into the hands of fewer
and fewer major players.
7. Upscale US style outlet centres have proved to be an exportable retailing
innovation.
One conclusion that is generated by all this states that there are too many poorly run outlet
centres and not enough well run dominant ones.
Retail Strategy
Appendix II -5
Appendix III:
Squamish Consumer Retail Survey
Retail Strategy
Appendix III
SQUAMISH RETAIL SURVEY
=============================================================================
Screen #1
------------------------------------------------------------------------------THANK YOU for taking the time to answer this brief survey. Your input will
help improve the RETAIL, DINING and ENTERTAINMENT opportunities available
within the DISTRICT of SQUAMISH. All responses are CONFIDENTIAL.
Completed surveys are eligible for an exciting PRIZE DRAW! ADULTS ONLY
PLEASE. PRESS "0" to begin.
===============================================================================
Screen #2 – ALL RESPONDENTS
------------------------------------------------------------------------------WHERE do you LIVE?
1)
2)
3)
4)
5)
6)
7)
8)
9)
Greater Squamish area
Whistler region
Pemberton
Mt. Curry/Darcy
Lillooet area
Vancouver/Lower Mainland
Other B.C.
Other Canada
Other
Total
Mean
684
42
11
5
1
146
8
5
18
----920
2.13
74.3%
4.6%
1.2%
0.5%
0.1%
15.9%
0.9%
0.5%
2.0%
====================================================================
Screen #4- TOURISTS
------------------------------------------------------------------------------WHERE are you visiting from?
1)
2)
3)
4)
5)
6)
7)
8)
9)
B.C. Interior
Vancouver Island
Other B.C. regions
Alberta
Ontario
Other Canada
Washington State
Other U.S.
Other International
Total
Mean
Retail Strategy
2
5
5
1
4
0
9
2
3
----31
5.06
6.5%
16.1%
16.1%
3.2%
12.9%
0.0%
29.0%
6.5%
9.7%
Appendix III - 1
===============================================================================
Screen #5 - TOURISTS
------------------------------------------------------------------------------What is your MAIN REASON for VISITING the Squamish region on this trip?
1)
2)
3)
4)
5)
6)
7)
8)
9)
Visiting family/friends
Work/Business
Stop on way north or south
Outdoor recreation/sports event
Shopping
Dining
Sightseeing
Entertainment
Other (T)
Total
Mean
28
26
65
24
3
5
6
6
14
----177
3.57
15.8%
14.7%
36.7%
13.6%
1.7%
2.8%
3.4%
3.4%
7.9%
=============================================================================== Screen
#6 - TOURISTS
------------------------------------------------------------------------------Are you planning to do any of the following SHOPPING or other activities
while in Squamish today? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Grocery (incl. liquor)
Clothing/gifts/accessories
Home furnishings/appliance
Dining
Services (banking, post office, etc.)
Entertainment (pub, hotels, events)
Hardware
None PRESS "0" to continue. (T)
Total
64
30
6
24
66
24
36
11
40
----177
36.2%
16.9%
3.4%
13.6%
37.3%
13.6%
20.3%
6.2%
22.6%
===============================================================================
------------------------------------------------------------------------------DOWNTOWN SQUAMISH is WEST of the Sea to Sky Hwy., past the McDonalds. The
MAIN STREET is called Cleveland Ave. Have you EVER visited DOWNTOWN
SQUAMISH?
1) Yes
2) No
3) Not sure (T)
Total
Mean
Retail Strategy
127
42
8
----177
1.33
71.8%
23.7%
4.5%
Appendix III - 2
===============================================================================
------------------------------------------------------------------------------Are you planning to visit DOWNTOWN SQUAMISH on this trip?
1) Yes
2) No
3) Don't know (T)
63
106
8
----177
1.69
Total
Mean
35.6%
59.9%
4.5%
=============================================================================== Screen
#9 - TOURISTS
------------------------------------------------------------------------------WHY are you NOT visiting DOWNTOWN SQUAMISH on this trip?
1)
2)
3)
4)
5)
6)
7)
No time
Don't know where it is
Don't have a reason to visit
Not interested
Shopping/dining elsewhere in Squamish
Don't like Downtown Squamish
Other reason (T)
Total
Mean
46
6
32
11
3
3
5
----106
2.51
43.4%
5.7%
30.2%
10.4%
2.8%
2.8%
4.7%
===============================================================================
------------------------------------------------------------------------------What would encourage you to STAY LONGER and PATRONIZE businesses in
DOWNTOWN SQUAMISH? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Special events, activities, entertain
Aesthetic appeal
Culture and arts
Nothing PRESS "0" to continue. (T)
Total
Retail Strategy
91
62
73
72
31
37
44
51
22
----177
51.4%
35.0%
41.2%
40.7%
17.5%
20.9%
24.9%
28.8%
12.4%
Appendix III - 3
===============================================================================
------------------------------------------------------------------------------If DOWNTOWN SQUAMISH had some interesting FACTORY OUTLET stores, would this
be a reason for you to spend more time there?
1) Yes
2) No
3) Don't know (T)
104
55
18
----177
1.51
Total
Mean
58.8%
31.1%
10.2%
===============================================================================
Screen #12 – REGIONAL RESIDENTS
------------------------------------------------------------------------------What is your MAIN REASON for VISITING the District of Squamish on this
trip?
1)
2)
3)
4)
5)
6)
7)
8)
9)
Visiting family/friends
Work/Business
Stop on way north or south
Outdoor Recreation/sports event
Shopping
Dining
Sightseeing
Entertainment
Other (R)
Total
Mean
2
5
21
6
19
0
0
0
6
----59
4.20
3.4%
8.5%
35.6%
10.2%
32.2%
0.0%
0.0%
0.0%
10.2%
===============================================================================
------------------------------------------------------------------------------Are you planning to do ANY of the following SHOPPING or other activities
while in Squamish on this trip? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Clothing/gifts/accessories
Home furnishings/appliance
Dining
Services (bank, medical, lawyer etc.)
Hardware
None PRESS "0" to continue. (R)
Total
Retail Strategy
27
19
8
12
13
16
3
9
4
----59
45.8%
32.2%
13.6%
20.3%
22.0%
27.1%
5.1%
15.3%
6.8%
Appendix III - 4
===============================================================================
DOWNTOWN SQUAMISH is WEST of the Sea to Sky Hwy., past the McDonalds. The
MAIN STREET is called Cleveland Ave. Have you EVER visited DOWNTOWN
SQUAMISH?
1) Yes
2) No
3) Not sure (R)
52
4
3
----59
1.17
Total
Mean
88.1%
6.8%
5.1%
===============================================================================
------------------------------------------------------------------------------What type of SHOPPING or other activities would you MOST LIKELY do when you
are in DOWNTOWN SQUAMISH? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Clothing/gifts/access.
Home furnishing/appliances
Dining (incl. cafes)
Services (bank, medical, lawyer etc.)
Hardware
Total
31
27
11
12
21
13
6
13
3
----52
59.6%
51.9%
21.2%
23.1%
40.4%
25.0%
11.5%
25.0%
5.8%
===============================================================================
------------------------------------------------------------------------------Are you planning to visit DOWNTOWN SQUAMISH on this trip?
1) Yes
2) No
3) Don't know (R)
25
32
2
----59
1.61
Total
Mean
42.4%
54.2%
3.4%
===============================================================================
------------------------------------------------------------------------------WHY are you NOT visiting DOWNTOWN SQUAMISH on this trip?
1)
2)
3)
4)
5)
6)
7)
No time
Don't know where it is
Don't have a reason to visit
Not interested
Shopping/dining elsewhere in Squamish
Don't like Downtown Squamish
Other reason (R)
Total
Mean
Retail Strategy
14
1
7
2
2
2
4
----32
2.97
43.8%
3.1%
21.9%
6.2%
6.2%
6.2%
12.5%
Appendix III - 5
===============================================================================
------------------------------------------------------------------------------What would encourage you to STAY LONGER and PATRONIZE businesses in
DOWNTOWN SQUAMISH? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Aesthetic appeal
Culture and arts
Nothing PRESS "0" to continue. (R)
Total
14
26
26
22
10
8
16
20
5
----59
23.7%
44.1%
44.1%
37.3%
16.9%
13.6%
27.1%
33.9%
8.5%
===============================================================================
-------------------------------------------------------------------------What, if any, SHOPPING or other activities are you MOST LIKELY to be doing
when visiting the OTHER PARTS of SQUAMISH (Garibaldi Village,
Industrial/Business Park, Brackendale), i.e. NOT the Downtown. ENTER ALL
that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Clothing and access.
Home furnishings/appliances
Services (bank, medical,lawyer, etc.)
Entertainment (pub, theatre, etc.)
Hardware/building supplies
Total
30
13
9
15
16
8
10
17
5
----59
50.8%
22.0%
15.3%
25.4%
27.1%
13.6%
16.9%
28.8%
8.5%
===============================================================================
----------------------------------------------------------------------------APPROXIMATELY, how often do you patronize shops and services IN the
District of Squamish?
1)
2)
3)
4)
5)
6)
7)
8)
3 or more times per week
1 or 2 times per week
3 or more times per month
Once per month
Less than once per month
2 or more times per year
Less than once per year
Never (R)
Total
Mean
Retail Strategy
5
14
17
13
4
2
2
2
----59
3.36
8.5%
23.7%
28.8%
22.0%
6.8%
3.4%
3.4%
3.4%
Appendix III - 6
===============================================================================
--------------------------------------------------------------------------Please ESTIMATE what proportion of your overall ANNUAL SPENDING is spent on
RETAIL, DINING and ENTERTAINMENT purchases IN the District of SQUAMISH.
1)
2)
3)
4)
5)
6)
Less than 10%
11-25%
26-40%
41-65%
66-80%
greater than 80% (R)
30
13
10
3
2
1
----59
1.93
Total
Mean
50.8%
22.0%
16.9%
5.1%
3.4%
1.7%
===============================================================================
--------------------------------------------------------------------------Based on your experience shopping in SQUAMISH, please review the following
list and identify the PRIORITIES you think the District should undertake to
IMPROVE its RETAIL, DINING and ENTERTAINMENT mix. ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Improve quality of goods available
Generate wider selection of retailers
Bring in name brand stores
Encourage more competitive pricing
Develop better service
Introduce evening shopping hours
Offer more dining/restaurant choices
Make aesthetic improvements
Total
11
20
13
17
8
15
16
19
6
----59
18.6%
33.9%
22.0%
28.8%
13.6%
25.4%
27.1%
32.2%
10.2%
===============================================================================
---------------------------------------------------------------------------Which, if any, of the following FOOD SERVICE RETAIL would encourage you to
SHOP in Squamish more often? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Natural foods market/co-op
Produce store
Specialty deli
Bakery
Family restaurants
Fine dining
Casual bistros and cafes
Chocolate/ice cream/sweets PRESS "0"
Total
Retail Strategy
28
21
28
12
17
8
12
22
3
----59
47.5%
35.6%
47.5%
20.3%
28.8%
13.6%
20.3%
37.3%
5.1%
Appendix III - 7
===============================================================================
---------------------------------------------------------------------------Which, if any, of the following COMPARISON RETAIL would encourage you to
shop in Squamish more often? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Home furnishings and appliances
Office/school supplies
Computers and electronics
Books
Gifts
Garden Centre PRESS "0" to continue.
Total
35
15
17
8
9
5
14
8
9
----59
59.3%
25.4%
28.8%
13.6%
15.3%
8.5%
23.7%
13.6%
15.3%
============================================================================
---------------------------------------------------------------------------Which, if any, of the following OTHER SERVICES would encourage you to
travel to Squamish more often? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Pet supplies
Wellness centre
Sports clinic
Full service spa
Art gallery, museum
Live theatre
Attraction(s)
Professional offices PRESS "0" to con
Total
10
7
11
8
13
10
21
16
1
----59
16.9%
11.9%
18.6%
13.6%
22.0%
16.9%
35.6%
27.1%
1.7%
============================================================================
------------------------------------------------------------------------------IF more SHOPs and SERVICES were OPEN in DOWNTOWN SQUAMISH on THURSDAY and
FRIDAY evenings, would this encourage you to patronize them more often?
1) Yes
2) No
3) Don't know (R)
Total
Mean
Retail Strategy
30
18
11
----59
1.68
50.8%
30.5%
18.6%
Appendix III - 8
============================================================================
be a reason for you to spend more time there?
1) Yes
2) No
3) Don't know (R)
33
20
6
----59
1.54
Total
Mean
55.9%
33.9%
10.2%
============================================================================
Screen #29 – SQUAMISH RESIDENTS
------------------------------------------------------------------------------How long have you LIVED in the Squamish region?
1)
2)
3)
4)
5)
1 year or less
2 to 4 years
5 to 10 years
11 to 20 years
More than 20 years (L)
68
126
158
152
180
----684
3.37
Total
Mean
9.9%
18.4%
23.1%
22.2%
26.3%
=============================================================================
------------------------------------------------------------------------------Do you WORK or OWN a BUSINESS in Squamish? ENTER ALL that apply.
1)
2)
3)
4)
5)
Work in Squamish
Own a business in Downtown Squamish
Own a business in other part(s) of Sq
Work outside Squamish
None of the above PRESS "0" to contin
Total
407
35
80
165
82
----684
59.5%
5.1%
11.7%
24.1%
12.0%
=============================================================================
------------------------------------------------------------------------------DOWNTOWN SQUAMISH is WEST of the Sea to Sky Hwy., past the McDonalds and
includes the Cleveland Ave. area. What type of SHOPPING are you MOST
LIKELY to be doing when you are in DOWNTOWN SQUAMISH? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Clothing/gifts/access.
Home furnishing/appliances
Hardware
None PRESS "0" to continue. (L)
Total
Retail Strategy
596
343
149
182
402
438
265
337
20
----684
87.1%
50.1%
21.8%
26.6%
58.8%
64.0%
38.7%
49.3%
2.9%
Appendix III - 9
=============================================================================
------------------------------------------------------------------------------Please tell us about your SHOPPING PATTERNS in ALL OTHER PARTS of SQUAMISH
(Garibaldi Village, Industrial/Business Park, Brackendale) . What type of
SHOPPING are you MOST LIKELY to be doing in the above areas of Squamish?
ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Clothing and access.
Entertainment (pub, theatre, etc.)
Hardware/Building supplies
Other PRESS "0" to continue. (L)
Total
459
155
146
192
426
267
357
365
61
----684
67.1%
22.7%
21.3%
28.1%
62.3%
39.0%
52.2%
53.4%
8.9%
=============================================================================
------------------------------------------------------------------------------Which of the following types of STORES and SERVICES do you patronize
OUTSIDE the District of Squamish? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Groceries
Clothing
Restaurants and entertainment
Office, computer electronic supplies
Automotive sales/parts/service
Professional services (health, person
222
32.5%
579
84.6%
465
68.0%
347
50.7%
451
65.9%
417
61.0%
257
37.6%
282
41.2%
26
3.8%
----Total
684
=============================================================================
------------------------------------------------------------------------------WHY do you patronize stores and services OUTSIDE the District of Squamish?
1)
2)
3)
4)
5)
6)
7)
8)
9)
Convenience
Selection
Pricing
Quality
Service
More fun and entertaining
Part of a trip away
Work outside Squamish
I ONLY SHOP in Squamish PRESS "0" to
Total
Retail Strategy
140
545
486
304
182
166
229
79
20
----684
20.5%
79.7%
71.1%
44.4%
26.6%
24.3%
33.5%
11.5%
2.9%
Appendix III - 10
=============================================================================
------------------------------------------------------------------------------APPROXIMATELY, how often do you patronize shops and services OUTSIDE the
Disrict of Squamish?
1)
2)
3)
4)
5)
6)
7)
8)
3 or more times per week
1 or 2 times per week
3 or more times per month
Once per month
Less than once per month
2 or more times per year
Less than once per year
Never (L)
Total
Mean
71
152
221
159
49
22
4
6
----684
3.11
10.4%
22.2%
32.3%
23.2%
7.2%
3.2%
0.6%
0.9%
===============================================================================
------------------------------------------------------------------------------Please ESTIMATE what proportion of your overall ANNUAL HOUSEHOLD SPENDING
is spent on RETAIL, DINING and ENTERTAINMENT purchases OUTSIDE the District
of Squamish.
1)
2)
3)
4)
5)
6)
Less than 10%
11-25%
26-40%
41-65%
66-80%
greater than 80% (L)
149
21.8%
208
30.4%
163
23.8%
112
16.4%
44
6.4%
8
1.2%
----Total
684
Mean
2.59
===============================================================================
------------------------------------------------------------------------------Please review the following list and identify which PRIORITIES Squamish
should undertake to IMPROVE its RETAIL, DINING and ENTERTAINMENT mix.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Improve quality of goods available
376
Generate wider selection of retailers
485
Bring in name brand stores
300
Encourage more competitive pricing
381
Develop better service
218
Introduce evening shopping hours
309
Offer more choices for restaurant dining278
Make aesthetic improvements
264
21
----Total
684
Retail Strategy
55.0%
70.9%
43.9%
55.7%
31.9%
45.2%
40.6%
38.6%
3.1%
Appendix III - 11
===============================================================================
------------------------------------------------------------------------------Which of the following OTHER FOOD SERVICE RETAIL would you like to see in
Squamish to reduce your need to shop outside the community? ENTER ALL that
apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Natural foods market/co-op
Produce store
Specialty deli
Bakery
Family restaurants
Fine dining
Casual bistros and cafes
Chocolate/ice cream/sweets PRESS "0"
Total
226
244
328
149
231
197
233
214
75
----684
33.0%
35.7%
48.0%
21.8%
33.8%
28.8%
34.1%
31.3%
11.0%
===============================================================================
------------------------------------------------------------------------------Which of the following OTHER COMPARISON RETAIL would you like to see in
Squamish to reduce your need to shop outside the community? ENTER ALL that
apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Home furnishings and appliances
Office supplies
Computers and electronics
Books
Gifts
Garden Centre PRESS "0" to continue.
Total
565
327
249
250
314
326
221
265
75
----684
82.6%
47.8%
36.4%
36.5%
45.9%
47.7%
32.3%
38.7%
11.0%
===============================================================================
------------------------------------------------------------------------------Which of the following OTHER SERVICES would you like to see in Squamish to
reduce your need to travel outside the community? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Pet supplies
Wellness centre
Sports clinic
Full service spa
Art gallery, museum
Live theatre
Attraction(s)
Professional offices PRESS "0" to con
Total
106
154
151
173
245
181
259
289
129
----684
15.5%
22.5%
22.1%
25.3%
35.8%
26.5%
37.9%
42.3%
18.9%
===============================================================================
-------------------------------------------------------------------------------
Retail Strategy
Appendix III - 12
Please identify which of the following OPINIONS regarding COMMERCIAL
DEVELOPMENT in SQUAMISH reflect your own PRIORITIES. ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
Revitalize Downtown with original retail422
Tastefully integrate some "big box"
272
Segregate any "big box" development
190
Stimulate Downtown with factory outlets 155
Do not permit any commercial develop.
104
Do not allow any new commercial develop. 21
Don't know PRESS "0" to continue. (L
40
----Total
684
61.7%
39.8%
27.8%
22.7%
15.2%
3.1%
5.8%
===============================================================================
------------------------------------------------------------------------------Which AREAs of SQUAMISH do you think should be PRIORITY LOCATIONS for NEW
SERVICES and FACILITIES? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Downtown
443
Waterfront from Bridge to Estuary
313
Industrial/Business Park (near Tim Hort)228
Garibaldi Village area
269
Brackendale
75
Future University commercial area
123
Other
25
Not sure
32
Prefer no further development PRESS "
21
----Total
684
64.8%
45.8%
33.3%
39.3%
11.0%
18.0%
3.7%
4.7%
3.1%
===============================================================================
------------------------------------------------------------------------------What would encourage you to PATRONIZE businesses in DOWNTOWN SQUAMISH more
often? ENTER ALL that apply.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Aesthetic appeal
Culture and arts
Nothing PRESS "0" to continue. (L)
Total
Retail Strategy
331
322
386
321
147
168
266
244
51
----684
48.4%
47.1%
56.4%
46.9%
21.5%
24.6%
38.9%
35.7%
7.5%
Appendix III - 13
===============================================================================
------------------------------------------------------------------------------IF more SHOPS and SERVICES were OPEN in DOWNTOWN SQUAMISH on THURSDAY and FRIDAY
evenings, would this encourage you to patronize the area more often?
1) Yes
2) No
3) Don't know
Total
Mean
459
111
114
----684
1.50
67.1%
16.2%
16.7%
===============================================================================
encourage you to patronize the area more often?
1) Yes
2) No
3) Don't know (L)
Total
Mean
462
133
89
----684
1.45
67.5%
19.4%
13.0%
===============================================================================
------------------------------------------------------------------------------Which AGE category are you?
1)
2)
3)
4)
5)
6)
19
20
30
40
50
65
or under
to 29 years
to 39 years
to 49 years
to 64 years
years and older
Total
Mean
64
243
247
221
105
37
----917
3.19
7.0%
26.5%
26.9%
24.1%
11.5%
4.0%
===============================================================================
------------------------------------------------------------------------------What is your GENDER?
1) Male
2) Female
Total
Retail Strategy
369
548
----917
40.2%
59.8%
Appendix III - 14
===============================================================================
------------------------------------------------------------------------------Your ANNUAL HOUSEHOLD INCOME is:
0)
1)
2)
3)
Don't know
Less than $40,000
$40,000 to $74,999
Greater than $75,000
53
5.8%
227
24.8%
375
40.9%
261
28.5%
----Total
916
Mean
1.92
===============================================================================
------------------------------------------------------------------------------How many PEOPLE does your HOUSEHOLD INCOME SUPPORT?
1)
2)
3)
4)
5)
6)
7)
8)
9)
One
Two
Three
Four
Five
Six
Seven
Eight
More than eight
Total
Mean
207
308
131
171
66
12
6
5
9
----915
2.69
22.6%
33.7%
14.3%
18.7%
7.2%
1.3%
0.7%
0.5%
1.0%
===============================================================================
------------------------------------------------------------------------------Do you have any children under the age of 12 years?
1) Yes
2) No
Total
293
620
----913
32.1%
67.9%
===============================================================================
------------------------------------------------------------------------------Do you have any children aged 13-18 years?
1) Yes
2) No
Total
Retail Strategy
180
731
----911
19.8%
80.2%
Appendix III - 15
===============================================================================
------------------------------------------------------------------------------Would you like to be eligible for our EXCITING PRIZE DRAW?
1) Yes
2) No
Total
752
157
----909
82.7%
17.3%
==============================================================================
Screen #55
------------------------------------------------------------------------------TREC International Inc. and the District of Squamish THANK YOU for
participating in this important survey. PLEASE PRESS "0" to RESTART
SURVEY.
Retail Strategy
Appendix III - 16
Appendix IV
Projected Expenditure Potential for Squamish
Retail Strategy
Appendix IV
Appendix IV: Projected Expenditure Potential for Squamish (2004) - Primary & Secondary Trade Areas
Primary
Trade Area
2004
Agg $
Food
004 Food purchased from stores
007 Board paid to private households
551 Tobacco products and alcoholic beverages
560 Alcoholic Beverages Purchased from stores
564 Self-made alcoholic beverages
Clothing
213 Womens wear (14 years and over)
250 Girls wear (4-13 years)
264 Mens wear (14 years and over)
293 Boys wear (4-13 years)
307 Infants wear (under 4 years)
313 Clothing material, notions and related services
Household Operation (incl. Pet Exp.)
114 Household cleaning supplies
127 Paper, plastic and foil household supplies
140 Other household supplies
Pet Expenses
111 Pet food
112 Purchase of pets and related goods
113 Veterinarian and other services
142 Household furnishings
169 Household equipment
488 Audio components
489 Audio combinations and radios
490 Pre-recorded audio tapes, CDs and records
491 Blank audio tapes
492 Television sets
493 VCRs, camcorders and other TV/video components
494 Pre-recorded videotapes and video discs
495 Blank videotapes
496 Oth home entertmt equip,attach, access & parts
Retail Strategy
40,580,747
32,512,539
21,121
4,719,222
3,148,583
179,282
15,245,286
7,078,310
779,561
5,236,909
705,563
283,842
1,161,101
7,231,462
2,124,160
2,225,852
462,473
2,418,977
1,322,164
359,686
737,127
9,804,206
5,004,267
4,799,939
3,097,174
282,333
378,502
786,129
44,203
677,986
322,648
333,252
78,150
193,971
Index
to B.C.
102
105
141
115
112
90
99
94
128
104
126
145
77
111
122
112
117
137
142
138
128
110
101
121
100
86
98
93
78
101
83
104
94
163
Secondary
Trade Area
2004
Agg $
Index
to B.C.
52,678,481
42,430,189
40,562
5,947,847
3,975,453
284,430
23,241,147
11,762,392
935,636
7,458,135
909,597
387,523
1,787,864
9,701,294
2,972,138
3,045,757
612,302
3,071,097
1,796,500
505,986
768,611
14,086,957
6,841,314
7,245,643
4,771,001
305,573
544,867
1,327,217
78,394
1,027,521
498,066
479,349
120,731
389,283
102
104
173
116
106
108
113
118
116
111
122
150
89
112
129
116
117
131
146
146
101
117
105
137
119
70
107
119
104
115
96
113
110
247
Total
Trade Area
2004
Agg $
93,259,228
74,942,728
61,683
10,667,069
7,124,036
463,712
38,486,433
18,840,702
1,715,197
12,695,044
1,615,160
671,365
2,948,965
16,932,756
5,096,298
5,271,609
1,074,775
5,490,074
3,118,664
865,672
1,505,738
23,891,163
11,845,581
12,045,582
7,868,175
587,906
923,369
2,113,346
122,597
1,705,507
820,714
812,601
198,881
583,254
Index
to B.C.
102
105
173
115
109
100
107
108
121
108
124
148
84
111
126
114
117
134
144
143
113
114
103
130
111
77
103
108
93
109
91
110
103
211
British Columbia
2004
Agg $
12,164,470,158
8,779,456,808
16,267,176
2,238,117,897
787,352,320
55,544,706
4,312,754,783
2,097,736,585
170,359,469
1,409,525,651
156,780,430
54,555,987
423,214,568
4,672,933,766
485,467,390
554,934,971
110,263,114
492,130,227
259,022,830
72,838,548
160,193,781
2,655,148,644
1,377,603,024
1,110,061,844
1,110,838,224
91,770,433
107,439,913
234,794,024
15,888,267
187,485,411
108,757,923
88,955,674
23,063,049
33,191,844
Appendix IV - 1
429 Sporting and athletic equipment
437 Playground equipment incl above-ground pool
438 Toys, games and hobby equipment
451 Photographic goods and services
457 Musical instruments, accessories and parts
458 Collectors items (excl works of art, etc)
459 Camping and picnic equipment (excluding BBQs)
577 Bingos
Reading Materials and Other Printed Matter
Health Care
389 Health care supplies
390 Medicinal and pharmaceutical products
391 Prescription drugs
392 Other
393 Physicians care
394 Eye-care goods and services
398 Other health-care goods
399 Dental care
412 Personal care
413 Personal care supplies and equipment
424 Hair washing, cutting and styling services
Video & Game Rental
462 Video game rental
497 Rental of videotapes and video discs
498 Rental of home entertainment equipment & other services
Communications
092 Telephone
100 Cellular services
102 Postal & other communication services (excl parcels)
Education
540 Supplies
543 Textbooks
Financial Services
058 Home equity line of credit interest
571 Financial services: bank, tax advice, etc
Legal Services
061
Legal fees related to the dwelling(s)
570 Legal services nes
Personal Insurance Services
062
Mortgage insurance premiums
078 Insurance premiums on other accomodations
Retail Strategy
9,243,360
1,366,712
151,848
3,749,577
972,926
223,978
97,534
190,644
743,214
1,746,927
11,514,176
5,205,258
103,425
2,181,143
1,267,236
914,419
67,098
946,927
115,936
1,790,729
6,308,918
4,171,408
2,137,510
11,752,225
900,158
86,891
797,855
15,412
6,587,615
5,565,829
611,580
410,206
684,916
280,488
404,428
1,473,936
413,127
1,060,809
1,326,301
526,870
799,431
779,299
636,440
142,859
115
118
205
112
110
99
101
138
111
92
102
100
91
114
110
120
76
103
88
99
104
110
94
144
117
62
104
103
110
100
91
113
89
80
98
120
96
144
104
13,547,266
2,606,263
94,731
4,831,732
1,323,860
457,453
51,900
231,845
1,291,025
2,658,457
15,625,444
7,008,736
205,221
3,101,379
1,962,274
1,146,642
51,418
1,351,670
182,004
2,117,044
8,616,708
5,716,887
2,899,821
16,382,300
1,513,051
117,637
1,369,878
25,536
9,434,387
8,203,187
653,101
578,099
1,112,344
496,523
615,821
1,783,085
515,591
1,267,494
1,456,153
933,057
523,096
1,083,280
912,906
170,374
123
170
97
109
113
153
40
126
146
106
107
107
136
122
129
113
44
111
104
89
107
114
96
147
152
77
112
114
88
107
99
151
102
76
89
160
47
155
93
22,790,626
3,972,975
246,579
8,581,309
2,296,786
681,431
149,434
422,489
2,034,239
4,405,384
27,139,620
12,213,994
308,646
5,282,522
3,229,510
2,061,061
118,516
2,298,597
297,940
3,907,773
14,925,626
9,888,295
5,037,331
28,134,525
2,413,209
204,528
2,167,733
40,948
16,022,002
13,769,016
1,264,681
988,305
1,797,260
777,011
1,020,249
3,257,021
928,718
2,328,303
2,782,454
1,459,927
1,322,527
1,862,579
1,549,346
313,233
119
148
143
110
112
129
66
131
131
100
105
104
117
119
121
116
58
107
97
93
106
112
95
1,709,361,660
322,558,178
20,642,862
936,466,658
245,768,119
63,140,905
27,016,727
38,664,973
186,711,648
528,387,296
3,850,297,409
2,154,692,615
31,691,514
533,538,407
320,812,512
212,723,605
24,503,580
256,959,831
36,920,666
502,815,682
1,695,604,794
1,059,382,679
636,466,441
146
137
71
108
110
97
104
96
135
97
16,800,685
189,597,195
6,954,268
1,859,282,532
1,552,113,718
155,734,487
114,078,347
1,166,588,904
69,185,265
126,640,098
77
93
143,773,177
301,179,167
143
68
122,634,319
232,708,221
150
98
123,653,728
38,394,882
Appendix IV - 2
502 Movie theatres
503 Live sports spectacles
508 Live staged performances (eg concerts)
512 Use of recreation facilities
528 Package travel tours
Restaurants & Cafes
012 At work
014 Other meals out
015 Between-meal food
556 Alcohol served on licensed premises
Home Building & Supplies
135 Flower and garden supplies
024 Tenants maintenance, repairs and alterations (Rented
HH)*
027 Maintenance, repairs and replacements (Owned HH)*
195 Home and workshop tools and equipment
199 Lawn, garden and snow-removal tools and equip
204 Other household equipment and accessories
581 Tools and equipment purchased for work
Auto Sales Parts and Operation
333 Purchase of automobiles and trucks
337 Purchase of automotive accessories
340 Rented and leased automobiles and trucks
351 Operation of owned & leased autos and trucks
385 Delivery services (Local & Inter-city)
386 Household moving/storage (Local & Inter-city)
4,664,781
357,982
218,639
325,345
2,044,603
1,718,212
9,982,240
2,359,155
5,080,334
1,383,701
1,159,050
6,680,042
1,738,045
48,319
2,641,073
788,108
855,530
434,584
174,383
49,726,364
18,536,452
189,214
1,866,014
28,714,389
54,226
366,069
91
80
83
67
95
87
93
84
90
113
79
92
71
103
72
97
86
95
81
87
107
108
111
112
6,261,344
423,198
359,943
459,444
2,762,954
2,255,805
13,355,801
3,004,337
6,536,443
1,734,736
2,080,285
9,340,786
2,219,874
34,701
91
75
94
70
96
87
94
82
89
109
96
2,105,752,035
125,551,766
73,556,656
134,454,316
602,148,202
549,367,755
3,368,746,160
784,293,833
1,573,672,480
342,676,625
406,616,191
107
61
10,926,125
781,180
578,582
784,789
4,807,557
3,974,017
23,338,041
5,363,492
11,616,777
3,118,437
3,239,335
16,020,827
3,957,919
83,020
109
83
437,209,095
12,069,072
110
137
174
102
90
94
130
117
81
119
100
139
3,447,881
1,251,368
1,251,776
872,327
262,859
61,882,431
24,956,834
151,274
2,540,474
33,882,057
96,073
255,719
109
165
192
154
102
115
133
71
83
106
133
73
6,088,953
2,039,476
2,107,306
1,306,911
437,242
111,608,795
43,493,286
340,488
4,406,488
62,596,446
150,299
621,788
110
153
184
132
97
96
132
91
83
112
119
102
667,117,176
160,139,737
137,243,701
118,907,846
54,029,830
11,380,634,461
3,965,108,325
45,008,870
640,753,633
6,729,643,477
15,155,468
73,418,442
Source: MapInfo, 2004; Statistics Canada, 2004; TREC International Inc., 2004
Notes:
*These numbers represent 2/3 of the total expenditure figures to account for product figures only.
Retail Strategy
Appendix IV - 3
Appendix V:
Tourism Retail Expenditure Potential
Retail Strategy
Appendix V
CONVENIENCE RETAIL EXPENDITURE POTENTIAL
DISTRICT OF SQUAMISH
User Groups
2002
2005
2010
2015
Whistler Winter
Daytrippers
Destination
$
$
$
10,399,497 $
769,444 $
9,630,054 $
11,983,988 $
867,941 $
11,116,047 $
14,775,042 $
1,035,260 $
13,739,782 $
18,151,169
1,233,861
16,917,308
Whistler Summer
Daytrippers
Destination
$
$
$
9,035,766 $
1,652,258 $
7,383,508 $
9,600,711 $
1,755,703 $
7,845,008 $
11,837,951 $
2,165,092 $
9,672,859 $
14,544,306
2,660,353
11,883,954
Total Primary
$
19,435,263 $
21,584,698 $
26,612,993 $
32,695,475
Vancouver Coast & Mountains
Region
$
168,006,108 $
186,461,039 $
220,399,648 $
260,423,405
(outside Whistler)
Greater Vancouver Resident
Daytrippers
$
26,024,855 $
28,685,058 $
33,702,183 $
2,966,249
Total Secondary
$
194,030,962 $
215,146,097 $
254,101,831 $
263,389,653
$
213,466,226 $
236,730,795 $
280,714,824 $
296,085,129
Retail Strategy
Appendix V
COMPARISON RETAIL EXPENDITURE POTENTIAL
User Groups
2002
2005
2010
2015
Whistler Winter
Daytrippers
Destination
$
$
$
10,771,039
1,140,986
9,630,054
$
$
$
19,386,325
1,298,309
18,088,016
$
$
$
23,972,266
1,569,983
22,402,283
$
$
$
29,527,252
1,895,261
27,631,991
Whistler Summer
Daytrippers
Destination
$
$
$
16,559,986
3,160,732
13,399,254
$
$
$
17,636,217
3,366,680
14,269,536
$
$
$
21,821,871
4,166,693
17,655,178
$
$
$
26,893,458
5,136,140
21,757,317
Total Primary
$
27,331,025
$
37,022,542
$
45,794,136
$
56,420,709
Vancouver Coast & Mountains
Region
(outside Whistler)
$
252,009,162
$
279,691,558
$
330,599,472
$
390,635,107
Daytrippers
$
39,037,282
$
43,027,588
$
50,553,275
$
59,395,234
Total Secondary
$
291,046,444
$
322,719,145
$
381,152,747
$
450,030,341
$
318,377,469
$
359,741,688
$
426,946,884
$
506,451,051
Retail Strategy
Appendix V - 1
FOOD / BEVERAGE / ENTERTAINMENT EXPENDITURE POTENTIAL
User Groups
2002
2005
2010
2015
Whistler Winter
Daytrippers
Destination
$
$
$
26,792,069
995,965
25,796,104
$
$
$
30,972,013 $
1,130,327 $
29,841,686 $
38,367,200
1,361,269
37,005,931
$
$
$
47,332,404
1,637,102
45,695,302
Whistler Summer
Daytrippers
Destination
$
$
$
26,530,214
3,461,836
23,068,378
$
$
$
28,283,943 $
3,688,245 $
24,595,697 $
35,051,410
4,566,229
30,485,181
$
$
$
63,276,076
25,649,276
37,626,799
Total Primary
$
53,322,283
$
59,255,956 $
73,418,610
$
110,608,479
Vancouver Coast & Mountains Region
(outside Whistler)
$
402,814,208
$
496,549,824 $
586,929,082
$
693,513,222
Daytrippers
$
69,304,757
$
76,388,938 $
89,749,652
$
105,447,205
Total Secondary
$
472,118,964
$
572,938,761 $
676,678,734
$
798,960,427
$
525,441,248
$
632,194,717 $
750,097,344
$
909,568,906
Retail Strategy
Appendix V - 2
Appendix VI
How Local Merchants Can Compete Against The ‘Big
Boxes’
Retail Strategy
Appendix VI
How Local Merchants Can Compete Against The ‘Big Boxes’
The following tips have proven effective in competing with the retail giants such as the ‘big
boxes’ and mass merchandisers like Wal-Mart. These have been found to be effective in both
the U.S. as well as throughout Canada based on experience with other downtowns and shopping
centres. Many of these strategies were derived by Dr. Kenneth Stone, an Economics Professor
with the University of Iowa, who worked with us in adapting his extensive researched based
strategies and applying them to the retail environment here in BC. Although the list that follows
has not been specifically tailored to the tenant or business mix located in Downtown Squamish,
most of them are directly applicable to its merchants. In fact, some of them are already practiced
by some of the successful destination and specialty retailers that currently exist in the District of
Squamish.
Attitudes and Actions
In general, it is best to take a positive attitude toward the opening of a new mass
Merchandise store in your area. The following fundamentals are offered as a background:
x In a free enterprise economy, all firms are free to compete. However, local
officials should be careful not to offer unduly generous incentives to large firms
that could place smaller firms at a disadvantage;
x Recognize that a discount mass merchandise store will probably enlarge your
town’s retail trade area size. Try to figure out ways to capitalize on the increased
volume of traffic in your town;
x It is possible to co-exist and even thrive in this type of environment;
x You may need to change your methods of operations as described below.
Merchandise Tips
The following suggestions are offered with regard to merchandise mix:
x Try to handle different merchandise. If you sell the same brand, variety or style
of merchandise as the mass merchandisers, you will be compared on price. If you
can hold your price within 10 to 15 percent of theirs’, you are probably okay.
However, if you allow your prices to rise, say 50 percent higher than they do’, then
you are in trouble as consumers will perceive that everything else you sell is
higher priced also. The solution is to handle different brands, varieties, styles, etc.
Many merchants are finding that private label merchandise works well when
available.
x Try to handle complementary merchandise. In many areas, the mass
merchandisers handle only fast moving items. For example some of the mass
merchandise garden centers handle only two or three varieties of bulbs. Bulb fans
soon learn they will not find selection at these stores. However, if you fill out your
Retail Strategy
Appendix VI - 1
lines with new and different bulbs, you can gain the reputation of being the bulb
center.
x Look for voids in the mass merchandiser’s inventory. Most mass merchandisers do not
carry a very good selection of plumbing supplies. It would behoove local hardware owners
to carry a complete line of plumbing supplies to fill these voids, if it fits their operation and
the market.
x Consider upscale merchandise. Not all customers desire or demand lower priced
merchandise. For example, most mass merchandisers handle low-end apparel. Clothing
dealers who serve middle-to-upper income households might want to handle more upscale
apparel.
x Get rid of the “dogs.” Nearly all businesses end up with some merchandise that does not
sell and ends up cluttering the sales space. This is bad for at least two reasons, 1)
merchandise must turn to generate a profit, and 2) old merchandise tarnishes the image of
your store. Merchants should identify the “dogs” and clear them out by whatever means
possible.
x Buy well. From time to time, nearly all merchants have an opportunity to purchase
merchandise at exceptional prices. If the merchandise is something you know you can sell,
you should take advantage of the good buys. With good buys you can enhance your pricing
image while making better profit margins. Storeowners should also be on the lookout for
opportunities to purchase cooperatively with other local merchants or through a larger
buying cooperative.
x Sell Singles instead of Pre Packaged Groups. For example, a crafts store may gain and
retain customers, particularly seniors and smaller households, and make profit by selling
singles of various supplies such as templates, paint brushes, etc.
x Find a niche that you can fill. Smaller merchants can often succeed by identifying and
supplying a void (s) in the mass merchandisers’ inventory and filling them as described
earlier.
Marketing Tips
There are always ways of improving marketing practices. The following tips are offered to
merchants regardless of their competition:
x Know your customers. It is important to know the demographics of your trade
area in order to have the optimal merchandise mix. The breakdown of the
population by income, age, occupation, etc. is available from census data, which
can be found at most libraries. In addition, several marketing firms can quickly
generate a detailed report, tailored to your specific trade area for a fee. You may
also want to conduct customer focus groups where diverse groups of customers
under the direction of a third party moderator, discuss what they like and dislike
about your business. These can be done by community colleges, other colleges and
universities and by private consultants.
x Extended opening hours is a necessity! Lifestyles have changed dramatically in
the last generation. Now it is quite common for a household to have multiple wage
earners working outside the household. Most of these people simply cannot get to
Retail Strategy
Appendix VI - 2
local stores to shop if they stay open only from 8:00 a.m. to 5:00 p.m., and by
necessity, they shop at mass merchandisers and shopping malls where the opening
hours are in tune with today’s societal needs. Downtown merchants and other
independent merchants can not seriously compete in this environment unless they
cooperate and offer similar convenient opening hours.
x Adopt a “no hassle” returns policy. Most mass merchandisers have very liberal
return policies and they have shaped consumer’s expectations. Unfortunately,
some independent merchants have more restrictive policies, which frustrate and
anger customers. Studies have shown that angry customers typically tell 10 to 20
other people about their bad experience and this can be disastrous for your store. It
is essential that independent merchants adopt returns policies similar to those of
the mass merchandisers. This policy should be stated on signs at the checkout
station, as well as on receipts and shopping bags, so that there is no doubt in the
customer’s mind about the policy. Signs such as “All sales final!” have little place
in today’s retail stores.
x Sharpen your pricing skills. Most customers judge the pricing structure of your
store on the few things they know of price of. Consequently, if you are selling a
popular brand of soft-white incandescent light bulbs for 200 percent more than the
mass merchandisers, they declare your store to be high priced, when in fact, most
of your other products may be competitively priced. The solution is variable
markup, where you identify several “price sensitive” items and mark them down to
be competitive with the mass merchandisers. Furthermore these price sensitive
items should be prominently displayed on end caps and other conspicuous places.
Conversely, on unique items or items where you are the sole source, you can take
higher markups.
x Focus your advertising. Stress your competitive advantage. Every business must
have one or more competitive advantages, in the eyes of the customer, in order to
succeed. For example Sears established a huge competitive advantage many years
ago when it adopted “Satisfaction Guaranteed.” With Wal-Mart, “Everyday Low
Prices,” is a strong competitive advantage. Smart firms incorporate these
competitive advantage mottos into nearly every advertisement. Unfortunately,
many smaller merchants do not get their full money’s worth from their ads because
they often fail to promote their competitive advantages. For example, a nursery
that offers free landscape planning or free delivery ought to incorporate these facts
into every ad. After a period of repetition, customers will automatically know your
competitive advantages and may patronize your store when the need arises.
Service Tips
x Superior service can become an important competitive advantage for many smaller
businesses. Large chain stores usually don’t have the flexibility to offer many of
the following services:
Retail Strategy
Appendix VI - 3
x Emphasize expert technical advice. It is difficult to find workers in discount
mass merchandise stores who know the merchandise. Many smaller stores build a
loyal clientele base because the owner and employees are able to help customers
analyze their problems and help them to find the necessary tools, supplies and
equipment.
x Offer deliveries where appropriate. Many customers, because of schedules or
health problems, have a need for deliveries. Others have a need for delivery of
certain items that are heavy or bulky. Typically mass merchandisers cannot
respond to these needs. Some smaller merchants can carve out a substantial market
share by offering delivery service.
x Offer on-site installation and service/repair of certain items. Many people have
a need for services such as professional tree planting, sod installation, tree pruning,
etc. Larger discount stores cannot readily provide this service. Independent
merchants can draw a substantial volume of trade by providing these and other
services.
x Develop special order capability. It is not possible for merchants to carry every
conceivable item in inventory. However, they should make arrangements with
suppliers or cooperating partner stores to quickly ship out-of-stock merchandise.
So rather than let a customer walk out the door when an item is not in stock, it is
better to say, “I’m sorry I do not have it in stock, but I can get it for you in two
days.”
x Offer other services as appropriate. Independent merchants can develop many
loyal customers by offering “how to do it” classes, rentals of certain items that will
boost sales of collateral merchandise, a branch post office, etc.
Customer Relations Tips
In past years, small businesses had the reputation of excellent customer relations. However,
nowadays many consumers perceive that they are treated no better in small firms than in larger
ones. Research has shown that poor customer relations are the primary reason that customers quit
doing business with a store. The following suggestions are offered for all businesses:
x Make sure customers are “greeted.” According to surveys, the primary thing
that offends customers is the failure to be greeted or acknowledged when entering
a store. This is particularly acute when the customer is in a buying mood. All store
personnel should be trained to “greet” customers when they enter a store,
determine their needs and assist them in any way possible.
x Offer customers a smile instead of a frown. It’s a fact that all customers prefer
doing business where they are treated in a friendly manner.
x Make employees “associates.” Firms like Wal-Mart and The Home Depot call
their employees associates and treat them as part of the team. Independent
merchants can emulate this. In particular, regular store meetings should be held
where everyone is apprised of the latest happenings and plans and where all
problems and suggestions can be aired.
Retail Strategy
Appendix VI - 4
x Solicit complaints. Many times customers have had a bad experience in a store,
but they are reluctant to complain to store personnel for various reasons. Instead,
they go around complaining to other people. Good merchants would rather hear of
the complaint first so they can find a remedy. They should provide an environment
where customers feel comfortable complaining. This can be done by soliciting
complaints through ads in the media, through signs at the checkout counter and on
shopping bags. You must be prepared; however, to solve these problems when
complaints are made.
x Learn how to handle irate customers. Dealing with irate customers is something
that few people enjoy, but it is crucial to the success of the business. The worst
thing store representatives can do is to argue with or be rude to an irate customer.
the following process with the acronym of LEAR is recommended:
-
L) Listen. It is easy to become defensive and turn off the customer while you are
thinking of your response, but it pays to set everything aside and listen intently;
(E) Empathize. Put yourself in the shoes of the customer and think how you
would like the situation resolved.
(A) Ask. questions to get all the facts on the table;
(RResolve. Resolve the situation to the satisfaction of the customer. Most
merchants have found that by merely asking, “What do you see as a reasonable
solution?” they can achieve a win-win solution.
x Train employees (often). In the eyes of the customer, the employee is the
business. Training employees can have one of the highest payoffs of any
investment in the business. New employees should be trained on store policies and
in the use of any equipment or machines to be used. As they progress in the
company, they should receive recurring training on new products or techniques
and industry trends. There is an array of training available through educational
institutions, parent companies, suppliers and others. In addition employees should
be given access to trade journals, videotapes and other educational items.
Continually Improve the Efficiency of Your Business
Businesses may be doing all the right things as mentioned above, but unless they are efficiently
operated, they are probably doomed to failure. Some of the top mass merchandisers such as WalMart and The Home Depot continually strive to improve their operating efficiency. The
following are some of the things you can do to improve your efficiency:
x Adopt modern technology. Mass merchandisers have improved their efficiency
dramatically by adopting new technology. Much of that technology is now
available and affordable to the smaller merchant. For example, powerful
computers are available at ever decreasing costs. Software packages to handle
nearly all store functions are also available. Computers reduce the need for people,
improve accuracy and provide quick analyses of the business’ performance. In
addition, point of sale (POS) scanner equipment is now available and affordable to
all but the smallest businesses. In addition to scanning prices and speeding
Retail Strategy
Appendix VI - 5
customers through the checkout line, they can revolutionize inventory control
when tied in with the store computer and ultimately with supplier’s computers.
x Become familiar with your financial statements. Many merchants do not like to
deal with the finances of the business. If they can “farm” this operation out to a
bookkeeper or accountant, they feel “out-of-sight, out-of mind", Good merchants
must become intimately familiar with the finances and operations of their
businesses. They should constantly monitor gross profit margins, operating
expenses, net profits and the various ratios important to the business.
x Relentlessly find ways to reduce operating costs. One of the reasons that the
mass merchandisers can lower prices and still make a profit is that they their
operating costs. In addition to adopting technology, they find ways to save on
utilities, insurance, transportation, etc. They are also always finding ways to
reduce continually reduce “shrinkage” by reducing shoplifting, pilferage and
damage to merchandise. Smaller merchants can do the same thing.
Retail Strategy
Appendix VI - 6

THE DISTRICT OF SQUAMISH RETAIL STRATEGY

Transcription

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