Go Uptown by Opening Downtown

Many retailers are finding that the prosperity, millennial appeal, and other positive characteristics associated with the term “uptown” are coming when they open up an inner-city location. A recent Forbes article surveys the scene:

• Nordstrom’s Rack stores are popping up in the downtowns of Columbus, Cleveland, Milwaukee, Chicago, Seattle, New York, Boston, Birmingham, and Washington D.C. 
• Walmart and Target continue to eye urban locations based on a store footprint smaller than in their suburban locations. 
• In downtown Boston, Federal Realty is developing a commercial complex to include retail stores and apartments. 

     Those are all big players, and it’s true that certain financial advantages—such as tax breaks and real estate incentives—are often available only to large employers. Still, an urban adventure can be profitable for small to midsize retailers as well. If you choose to go uptown by opening downtown, here are a few shopper psychology tips:

• Complementation over competition. Locate where your product lines complement rather than compete with those of adjacent retailers. Four gas stations, one on each corner of a suburban intersection, might all do well, but that’s in an automobile environment. The same goes for four Italian restaurants on the same block in a suburban area. They might all succeed because most of their patrons drive in from elsewhere. However, urban businesses depend to a greater extent on shoppers who walk in. These shoppers like a variety of merchants in the neighborhood, since this allows them to stay local. For similar reasons, be as close as you can to a related business. If you operate a dessert shop, adjacency to one Italian restaurant is good. 
• Contribute to the neighborhood. In any city, keeping up appearances outside can be more difficult than handling the interior décor. Store owners often don’t own the building itself so have limited control over the exterior. Concerns about homeless populations and street demonstrations can shift the store operator’s criteria for outside design from decorative elegance toward bland architectural security. Distinguish your store and earn consumer appreciation by dressing up the street appeal. 
• Fit your hours to the shoppers. If your downtown is a commercial center, the businesses will have staff who are interested in shopping with you during lunch hours. If your downtown is largely residential, evening and weekend hours will draw business. Think when the mindset of your target consumers is on buying and open your doors for those times. 

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