By Alan Johnson, EDC/IDB member
The February 27th Board meetings for the Economic Development Commission/Industrial Development Board began with an informative and in-depth presentation from Shawn Massey on the State of Retail in 2020 and Beyond.
Mr. Massey is a Partner in TSCG-Memphis (The Shopping Center Group), which provides a full assortment of advisory services to tenants, landlords, developers, investors and financial institutions in the Greater Memphis Area and across the country.
He began the presentation by stating that he is very excited in the future of Memphis and by explaining that Memphis has recently been ranked by Glassdoor as number 4 of the Top Cities for Jobs in 2020. The study bases its rankings on the number of job openings, the median base salary of those jobs, and various cost of living metrics. He also stated that for the first time in many years, data shows that more people are moving from Nashville to Memphis than vice versa.
The full slide presentation is attached, however key points include the following:
- Americans spend 35% more money per person than the second-place country, Canada.
- The three forces driving retail are value, convenience and experience.
- The 5 hot sectors of retail are food, fitness, recreation, fashion and furniture.
- Amazon is not killing brick-and-mortar retail, it is shaping the way stores and businesses evolve. This is supported by the fact that more stores are opening than closing in 2020 and 74% of retails sales are still coming from stores. A recent study of 300 retail brands reveals that an estimated 86% of all order fulfillment in 2020 will come from retail locations.
- Physical stores improve delivery time for online purchases.
- Stores are downsizing, however off-price retailers (TJ Maxx, Ross, Burlington, etc.) are thriving.
- Previously online-only brands (Casper, Amazon, Untuckit, etc.) are opening physical stores.
- Digital companies like Microsoft, Apple and Amazon are growing their physical footprints.
- Opening a physical store has been shown to improve web sales for the store brand in that market by an average of 27%.
- Traditional shopping centers are being replaced by walkable community centers.
- Micro Retail and Pop-Up-Shops are a new trend.
- Medtail, unique retail medical centers, are a new trend we are experiencing.
- More food retailers are incorporating elements of entertainment.
- There is an increasing need for hotels, especially in the Memphis Metro Area.
- Restaurants are one of the fastest-growing retail sectors currently, including ghost kitchens, which have no dining space and provide food via delivery only.
- Supporting local businesses is important to the community in many ways.
Link to Google album of the presentation: https://photos.app.goo.gl/7cZByyQnM44jWhjP7
Mr. Massey referenced multiple times that Lakeland was on target and ahead of the curve with the concepts behind their new multi-use developments, The Lake District and Lakeland Town Square.
Lakeland economic development
Next, Dexter Muller, Lakeland’s Economic Development Consultant,
gave a quick update of recent progress. Construction plans for the Aldi on U. S. Highway 64 have been submitted and permits are ready to be issued. Story Point Senior Living is still evaluating sites for a potential independent living facility that would cost approximately $30 million and generate $150,00-225,000 tax revenues per year. A second company from Arizona is considering a $15-20 million independent living facility along the Hwy 64 corridor. Also, Blue Cross Blue Shield is searching for a location in Lakeland to build a primary care/urgent care clinic.
New website
Board member Alan Johnson explained that the www.discoverlakelandtn.com website is live and showed a quick preview of the site. The website is designed to be a promotional resource for the city, including comprehensive information about the various elements of our community including: demographics, property values, commercial development, available commercial sites, a retail sales analysis, residential development, the discover Lakeland video, the school system, and other important resources. A marketing plan and search engine optimization strategy are being developed to promote the new site to prospective developers, residents, and visitors. A 40-page economic development booklet has also been developed including the same elements. These booklets will be sent to prospective businesses, real estate brokers, developers, and other key contacts.
Residential developments
Other interesting updates include two new planned residential developments being considered. Renaissance Development, LLC intends to develop a 76-acre property adjacent to The Grove and Oakwood Grove subdivisions. Details of the development are being discussed. Cummings, LLC also intends to develop Chapel Lakes, a planned development by Oakwood Grove subdivision and Chambers Chapel Road. This property is 126 acres and could provide 268 homes.
