Pop-up Retail

This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on August 2, 2018.  You no doubt are hearing more about pop-ups, and for good reason. It’s a trend that isn’t new but is really catching on because it offers win/wins for everybody. Pop-up retail began… Read more »

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This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on August 2, 2018. 

You no doubt are hearing more about pop-ups, and for good reason. It’s a trend that isn’t new but is really catching on because it offers win/wins for everybody.

Pop-up retail began to appear in the 90s in the world’s major cities. The trend spread in the 2000s and can now be found in one form or another in almost every community. Pop-ups come in every shape and size and are ideal for products from fashion to tech gadgets to art to makers and food.

Early versions saw major retailers clearing space in their stores for outside vendors to set up specialty shops. Sometimes they held receptions, cocktail parties or festivals to highlight a new product line or designer. Years ago, Target rented a boat at a New York pier for a holiday pop-up, and you’ve likely noticed major furnishings retailers using temporary shops for floor sample sales.

Most of us are familiar with pop-ups around the holidays. Christmas markets and fireworks stands have been around for years. Halloween shops will appear in a couple of months, and ugly Christmas sweater shops are becoming icons for holiday fun and quirkiness. Clever retailers always find ways to monetize holidays, festivals, anniversaries and the spectrum of annual and seasonal occasions. Pop-ups broaden those opportunities.

For vendors, makers and artists, pop-ups give them an easier and more affordable way to test a concept or product and determine whether there is a viable market. If their items sell, they can consider options for expanded pop-ups or perhaps moving into brick and mortar. Pop-ups enable them to fine-tune their approach and make less expensive adjustments because of the manageable scale. If their approach falls flat, their risk was minimized and they can more affordably retool and come back to try again.

The community also benefits. Fewer vacant storefronts convey greater vitality, and the increased foot traffic helps neighboring stores. The community and its consumers also get to experience brands and approaches they might otherwise never know.

Landlords have much to gain from pop-ups. It’s not only a way to monetize vacant space, but also exposes their real estate to prospective permanent tenants. Even if the space is slated for development or waiting an incoming tenant, a pop-up could bring in extra revenue and be tailored to the circumstances.

The Alexandria Economic Development Partnership (AEDP) is proactively promoting pop-ups to add vibrancy and strengthen the local economy. Their Pop-up website welcomes vendors searching for space and provides landlords templates for pop-up leases and a way to list their space.

 AEDP also welcomes community suggestions for pop-ups to attract.

AEDP and the Small Business Development Center are presenting a Pop-Up Retail workshop on August 15th that will highlight opportunities and discuss how to approach the pop-up process.

There’s magic in pop-ups because we all enjoy being part of something that’s special and unique, and because it’s a fleeting experience we get a greater sense of urgency. Ideally we can look forward to more pop-up excitement in Alexandria.

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Small Business is a Community

This blog post was written by Alexandria small business owner Carol Supplee following last week’s fatal attack in Old Town. I never want to see crime scene tape again. The Alexandria business community lost one of its own today.  “Man found slain in Alexandria business,” read one headline.  It’s shocking and sobering and terribly sad…. Read more »

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This blog post was written by Alexandria small business owner Carol Supplee following last week’s fatal attack in Old Town.

I never want to see crime scene tape again.

The Alexandria business community lost one of its own today.  “Man found slain in Alexandria business,” read one headline.  It’s shocking and sobering and terribly sad.  It’s an event that reminds us of our vulnerability.  It reminds us that we must always be looking out for our colleagues, friends and neighbors.  It traumatizes those immediately involved.  To passers by it was mostly a curiosity or even an annoyance.  There were yards and yards of crime scene tape all around the 1200 block of King Street and the block was closed for at least eight hours on Friday, July 13.  The Alexandria Police Department took a suspect into custody at the scene, so we are calmed by their quick response, their interviews at the scene and the idea that there is no immediate and lurking danger out there.

Then I am remembering.   Many business owners will have experienced some threat to personal safety or loss that now comes back to haunt us.  We get through those experiences again by being there to support each other.  That’s what the community does.  And business will go on as usual.

Then I come back to the event and the loss of a life never to be returned which is an entirely different matter.  The victim, the victim’s family, the murderer and the murder’s family are now one in a tragic loss.

This one was up close and personal.

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Fitting small businesses into Alexandria’s priorities

This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on June 7, 2018.  The good news for those that care about small businesses is that they poll very high in candidate stump speeches. That’s likely because Alexandria’s economy and character are so dependent on them…. Read more »

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This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on June 7, 2018. 

The good news for those that care about small businesses is that they poll very high in candidate stump speeches. That’s likely because Alexandria’s economy and character are so dependent on them.

Small businesses comprise about 90 percent of total businesses and contribute most of the city’s commercial tax base. It’s not just their job creation and fiscal clout, those independent businesses that fit so nicely into our historic and quaint spaces also help form Alexandria’s distinctive sense of place.

The charm and proximity of our commercial districts are blessings, but they also pose unique challenges for both businesses and nearby residents. Restrictions have been imposed to preserve the character and history that distinguishes Alexandria. Any property owner, resident or retailer can tell you that making changes or adding to a building can be challenging, expensive and time consuming. But residents and businesses alike take pride in preserving the aesthetic that makes this such a great place to live, work and visit.Retail

At election time, we often hear about the need to reduce burdens for small businesses. Almost everybody wants to help small businesses and agrees in theory with reducing burdens on them.

In every survey of small business owners, regulatory compliance ranks at or near the top of the list of their greatest hinderances. Small business owners struggle to understand and respond to these requirements and doing so unfortunately takes their focus away from their products, services and competition – the core of their operations.

Red tape and delays have particularly harmful consequences for owners at the very fragile startup stage, when their resources are thin. Entrepreneurs desperately need to get their doors open to begin collecting revenue. Startup delays due to regulatory processes can be expensive, and a weak cash flow at the start may lead to failure down the road.

City staff recently identified zoning ordinances that were costly and time-intensive for small businesses. They focused on ordinances that seem excessive based on their limited community impact. These ordinances were typically put into place with good intent and without recognition of the unintended consequences for small business owners. Proposed changes also aligned with business trends that were not anticipated when the ordinances were originally written.

The almost universal agreement to reduce burdens for small businesses somehow ceased when specific regulation revisions were proposed. Some citizens and citizen groups perceived that the floodgates would open and their protections would be eroded.

The integrated nature of our community often brings together stakeholders with differing viewpoints, from residents who fear that nearby businesses will bring noise and traffic, to proprietors who are doing everything possible to help their businesses thrive. It takes smart and decisive leadership to understand the complexities of cutting red tape while engaging with stakeholders to carefully craft meaningful responses.

Our economy and quality of life are enhanced by the success of small businesses, so it’s worth considering whether we are all doing our very best to welcome and support them.

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Alexandria Small Business Profile: Scramble Indoor Play

Bill Reagan, Executive Director of the Alexandria SBDC, interviews Laurence Smallman, owner of Scramble Indoor Play, at his business.   This video is part of a three-part series created for Small Business Month, featuring interviews with Alexandria small business owners about the growth of their businesses and their experience working with the Alexandria Small Business Development… Read more »

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Bill Reagan, Executive Director of the Alexandria SBDC, interviews Laurence Smallman, owner of Scramble Indoor Play, at his business.

 

This video is part of a three-part series created for Small Business Month, featuring interviews with Alexandria small business owners about the growth of their businesses and their experience working with the Alexandria Small Business Development Center.

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Alexandria Small Business Profile: Rooftop Chimney Sweeps

Bill Reagan, Executive Director of the Alexandria SBDC, interviews Dylan Raycroft, owner of Rooftop Chimney Sweeps, at the Alexandria SBDC.   This video is part of a three-part series created for Small Business Month, featuring interviews with Alexandria small business owners about the growth of their businesses and their experience working with the Alexandria Small… Read more »

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Bill Reagan, Executive Director of the Alexandria SBDC, interviews Dylan Raycroft, owner of Rooftop Chimney Sweeps, at the Alexandria SBDC.

 

This video is part of a three-part series created for Small Business Month, featuring interviews with Alexandria small business owners about the growth of their businesses and their experience working with the Alexandria Small Business Development Center.

 

The post Alexandria Small Business Profile: Rooftop Chimney Sweeps appeared first on Alexandria Small Business Development Center.

Creating a vibrant small business environment

This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on May 3, 2018.  Entrepreneurship doesn’t flourish by happenstance. Centers of innovation – like Silicon Valley in California; Austin, Texas and Seattle, Washington – seem to have found the mix of characteristics and attractions that lure… Read more »

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This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on May 3, 2018. 

Entrepreneurship doesn’t flourish by happenstance. Centers of innovation – like Silicon Valley in California; Austin, Texas and Seattle, Washington – seem to have found the mix of characteristics and attractions that lure the country’s most innovative entrepreneurs. Even though they are known as tech hubs, these examples have also become hubs for creative retail and great food. Businesses of all kinds tend to be attracted to innovation hubs and places that are “Top Ten” in other categories.

Businesses like to cluster with other like businesses. Old Town has a concentration of independent boutiques and shops in part because they like to be located near other similar types of stores. New, creative restaurants often pop up near each other, like the explosion of new eateries along U Street and around Union Market in D.C.

The reasons for such clustering are well known. Entrepreneurs like to be near other energetic entrepreneurs and are attracted to vibrant communities. Innovators that consistently push the envelope are attracted to welcoming communities. These are places where the threshold for startups is modest, people are accepting of diversity and new ideas can be developed, launched and refined without ridicule.Retail

Alexandria should fare pretty well as an entrepreneurial destination. We have many winning attributes. We’re inside the beltway. We have historic authenticity that other places try to replicate. And we’re already a top-rated tourist destination, just to name a few. The city is also the right scale – small enough to build meaningful connections and know your neighbors, yet large enough to have the amenities and vibrancy of a big city. All those things position Alexandria to be attractive to innovative businesses.

However, innovators are not just looking at the city in a vacuum. They’re reading media coverage of the city and, frankly, may not be getting the best impression. Creative entrepreneurs are turned off by sentiments like, “We don’t want anything that attracts more people,” or, “Alexandria already has too many restaurants.” This rhetoric implies that Alexandria is not welcoming to opportunities to grow its tax base and be a destination for innovative businesses.

The harsh reality is that our local economy is either growing or declining. Economies don’t just mark time, especially in an era of dramatic market shifts. We, as a city, need to recognize the impact of our words and our deeds and how they might be interpreted by entrepreneurs evaluating Alexandria as an option. We cannot afford to be seen as a city that has disdain for innovation.

Our city would become very different if we cease to nurture a vibrant small business community. To maximize our potential, we must constantly focus on ways to retain and attract the brightest and best small businesses that will add value, build diversity and stimulate vitality.

All of us have a role to play in making Alexandria an attractive destination for the most promising businesses and creative entrepreneurs who enhance our economy and quality of life. Who could be against that as we enter Small Business Month?

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Finally, spring is here

This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on April 6, 2018.  This year’s annual column on making the most of our springtime is not going to require much convincing. It wasn’t a particularly cold or snowy winter, but it was drab, and everyone I… Read more »

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This post is written by Bill Reagan, Executive Director of the SBDC and first appeared in the Alexandria Times on April 6, 2018. 

This year’s annual column on making the most of our springtime is not going to require much convincing. It wasn’t a particularly cold or snowy winter, but it was drab, and everyone I know is beyond ready to get out and enjoy the spring weather.

Alexandrians are blessed with an abundance of ways to celebrate the warming season. Just getting outdoors will feel plenty good, but what incredible options we have. First, we can simply stroll our beautiful and historic neighborhoods.

This time of year, our neighbors are planting in their flowerbeds, window boxes, or pots on their sidewalks and hanging new door wreaths. For a closer look inside and a peek behind garden walls, don’t miss the Historic Homes & Garden Tour on April 21.

Baseball season is finally here and there’s no easier or more picturesque way to get to and from Nats Park than the Potomac Riverboat Company’s Baseball Boat that boards at our waterfront. And speaking of the river, Alexandria has access to incredible waterfront trails and parks where you can stroll, picnic or bike. For the more ambitious among us, there’s always the George Washington Parkway Classic, a ten mile race along the Potomac from Mount Vernon to Old Town on April 22.

Keep an eye out for festivals and events where you can sip spirits at galleries, brew houses or gardens or even historic sites such as the Mt. Vernon lawn. On Saturdays in May, enjoy Attics and Alleys, a three-hour walking tour of rarely seen historic sites in Old Town. Afterwards, check out one of the many new restaurants opening this spring, like Mia’s Italian Kitchen or Smoking Kow BBQ.

We should never take our treasures for granted – they’re not just for tourists.

Speaking of tourists, I’m sure you’ve heard that Money Magazine just selected Alexandria as the #1 best travel destination in the United States for 2018. What a confirmation that we live in an incredible place.

This calls on us to be gracious hosts for the visitors that designation is certain to bring. We know from Visit Alexandria studies that tourism generates hundreds of millions of dollars for local businesses and supports thousands of Alexandria jobs.

Tourism also reduces the tax burden on our households. Cities that are tourist destinations tend to also spur creative economies. The charm and vitality that lures tourists also attracts entrepreneurs and helps businesses recruit skilled workers.

The snowball effect adds to the diversity and strength of Alexandria. What can we do to enhance the visitor experience? First, be welcoming in every way, such as helping someone who’s struggling with a map or looking lost. You know how such help has made you feel in strange places. Second, be ready to suggest great places for them to visit, shop or dine. We all value recommendations from locals when we travel.

Spring has sprung and it’s a great time to get out and enjoy our community – and let our enthusiasm become contagious to visitors.

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Who Are Your Customers? Where are They From?

This blogpost was written by Vito Fiore, Director of Marketing and Research for Visit Alexandria.  It provides some very valuable marketing research information for Alexandria’s small business community. As the tourism marketing agency for the City of Alexandria, we at Visit Alexandria are always trying to better understand questions such as: “Who is visiting Alexandria?”… Read more »

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This blogpost was written by Vito Fiore, Director of Marketing and Research for Visit Alexandria.  It provides some very valuable marketing research information for Alexandria’s small business community.

As the tourism marketing agency for the City of Alexandria, we at Visit Alexandria are always trying to better understand questions such as: “Who is visiting Alexandria?” “How much money are they spending?” “On what are they spending their money?” and “How important is visitor spending to the Alexandria economy?”. In the past, we answered these questions by relying on data sources like website analytics, advertising tracking pixels, visitor center traffic, and survey data.

Out of all these methods, survey data provides the most detail on how money is spent, but it is imprecise and reliant on human recall. Let’s say we ask someone if they’ve visited Alexandria in the past year. They respond, “Yes, I visited 8 months ago.”  We can ask them what they spent on lodging, restaurants, shopping, etc., and they almost certainly won’t be able to do better than a rough estimate. Furthermore, this method is subject to sampling error.

For several years, Visit Alexandria has been looking at ways to gather more reliable information.  We discovered that the nation’s largest credit card provider, Visa, has a “big data” product known as VisaVue. This product provides spending data for a given location in 24 different merchant categories. Perhaps most interestingly, the spending is broken down by the cardholder’s source location (at the metropolitan statistical area level). By partnering with Virginia Tourism Corporation and Visit Virginia Beach, Visit Alexandria was able to purchase the VisaVue product recently at an affordable price.

Visit Alexandria breaks its marketing campaign into two broad categories: 1) Destination, targeting those overnight guests from outside of the DC region, and 2) Regional, targeting those daytrippers that live outside of Alexandria but within the DC region. Our destination campaign is by far the larger effort, as our primary mission is to drive overnight stays in Alexandria and increase visitor spending. According to a 2014 survey-based study conducted by Destination Analysts, on a per person basis, overnight visitors to Alexandria spend about 3 times as much per trip as day visitors. That said, we were excited because the VisaVue data could give us a better understanding of how big the spending (and thereby tax revenue) impact is in key sectors from locals, regional visitors, and destination visitors.

The VisaVue data represents all domestic Visa credit and debit transactions, which were over $1 billion in City of Alexandria spending in calendar year 2016. This represents about 1/3 of all spending in lodging, restaurant, and retail categories.  Because Visa is widely used for both business and consumer spending at many income levels, we feel that this data is generally reflective of spending in Alexandria as a whole. And, because it is an accounting of ACTUAL consumer spending, it does not have the limitations discussed earlier that relate to self-reported data from surveys.

By determining Visa spending patterns according to source location, we can then extrapolate these patterns out to all spending (under the assumption that Visa spending in Alexandria is generally reflective of all spending behavior). Then we can apply these patterns to tax collection data from the City of Alexandria in order to determine the estimated share of local taxes that are paid by Destination visitors (from outside the region), Regional visitors (people from the DC region but outside of Alexandria), and those local to Alexandria. The results are below:

The headline here is that 71% of consumption taxes (restaurant, lodging, and sales) paid to the City of Alexandria come directly from people who are non-residents.  That $44 million translates to a savings of about $590 per Alexandria household. The revenue generated by visitor spending reduces the pressure on other taxes on residents like property taxes. You’ll notice that the consumption spending by destination visitors is roughly the same as that by all Alexandria residents.  And perhaps most surprisingly, spending from regional visitors have the largest impact, with 43% of all spending in these categories.

As you might expect, when it comes to lodging, destination visitors do the vast majority of the spending. However, there is still a share of spending that comes from within the region, presumably for staycations, business travel booked by companies within the region for those travelling to Alexandria, or locals booking a hotel for friends and relatives staying in Alexandria.

For the meals tax, which includes spending at both full-service restaurants and quick-service establishments, half is paid by regional visitors and 19% is paid by those visiting from outside the DC region.  Remember that this data is citywide; we would expect that the share of destination visitor spending would likely be much greater than the chart above in Old Town, and smaller than the chart above in locally-driven neighborhoods (e.g., Potomac Yard, West End).

The story is similar when it comes to the sales tax. Since the sales tax is applied to a wide range of spending, we combined VisaVue data from a whole host of retail and restaurant categories for this calculation.  This chart shows us that while retail is a bit more locally driven than lodging and dining, it still owes the majority of economic activity to non-Alexandrians.  That’s remarkable given that a huge portion of this tax is paid at places like supermarkets where spending is predominantly locally-driven.

There’s much more to learn from this rich data set. In the coming months, we’ll be doing a more detailed analysis at the metropolitan area level to inform our advertising marketing selection for the upcoming year.  Does Norfolk provide more visitor spending per capita than Philadelphia? Once they arrive, do people from New York City spend more per trip than people from Atlanta?  How much of our visitation comes from a closer, smaller city like Richmond versus a more distant, large metropolis like Chicago? We’ll be using the VisaVue data, among other sources, to better understand the answers to these questions.

What we already have learned, however, is significant. Marketing to destination visitors will always be our primary task, but given the scale of the impact on our tax revenue from regional visitors we are looking for opportunities to increase our efforts there as well. And the broader finding that 71% of retail, restaurant, and lodging spending comes from non-residents tells us that Alexandria’s economy is dependent on being welcoming to all, whether they are from Arlington, Virginia or Arlington, Texas.

Vito Fiore is the Director of Marketing and Research at Visit Alexandria. He can be contacted at [email protected].

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