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04 Buxton Retail Study Presentation , . , , , , . ~ , ~ ~ ~ ~ t) .) .\ .\ ~i .l ~\ ~\ CommunitylD~ Proposal Presented to: City of Paris August 31,2007 ,! ~! ~\ ~) Prepared by: Expiration Date: Tim Keith November 30, 2007 tl t! l' ~! Ii Ii I! Ii . . . . . . . t t . .' .' . .: .' ~, .' .' .' .' .' . .' ~I ~I ~ I I' II ~ Community/D' -- - .-----=-=-----.......:;:o...:___~_"_"'~_~"'________=__..~'<.___'___~~~_=________=_'='_=~~___ ____ ___~__="""~_ TABLE OF CONTENTS Executive Overview 2 Scope of Services 3 Project Requirements 7 Timeline 8 Fee for Services 9 Signature Page 10 t ~ . BU1(ton' IDentifying Customers . I) . . . . . . . . . . . . t . t . . . . . . . . t . . . . . . . . . . . . . . . . CommunityJD~ '------=:.::."-=--~=-=-=---"'-- --- ~=---"--=-~~-~~-""~=-----""'-~ -':::;'-~--<--=~=----------=....._----- ~-=-~~--"- =-- EXECUTIVE OVERVIEW Buxton appreciates the opportunity to propose its services to the City of Paris. The objective of this proposal is to summarize and outline the comprehensive scope of work Buxton will provide as the City of Paris pursues its retail attraction and expansion goals. Please note that in this proposal the term "retail" is inclusive of restaurants. CommunitylD CommunitvlD is a total marketino strateov that enables community leaders to immediately implement a retail development program. It provides data, information and selling tools to make a compelling case as to why the City of Paris can support new store and restaurant locations and expansions. CommunitvlD ooes beyond a plan. It allows the City of Paris to be proactive and take the initiative rather than waiting and hoping something happens. Methodology The methodology used to develop your CommunitylD is the same methodology that Buxton uses with over 1,500 retail clients to select locations for stores and restaurants. Much of the methodology is proprietary and has been developed utilizing new technologically advanced systems. This day-by-day working relationship that Buxton has with major retail clients gives you the assurance that your marketing materials will address the needs of location decision-makers. With CommunitylD you can effectively sell your community because you are providing the details required to make decisions. There are five major steps involved in developing CommunitylD. At each step the City of Paris is involved in the process and can make input into the analysis. The five steps are: Step One: Defining Your Retail Trade Area Step Two: Retail Potential and Site Determination Step Three Identification of Retail Matches for Selected Site Step Four: Publishing of Retail Marketing Packages Step Five: SCOUT All CommunitylD deliverables will be in both hard copy and in Buxton's SCOUT online marketing system which allows the City of Paris to print customized reports and presentations. The following is an outline of the scope of work for this project. Buxton is pleased to propose its services and looks forward to identifying retail opportunities for the City of Paris. Bu}([on' IDentifying Customers 2 - .. , , .. , , , t t . . . . . . ~ ~ ~ . . . t t t I I ~ Community/D' --~=-=--::.~___ _.L.. =--"-~~---=--.::.-..~~~~-"'---.,,_-=:........-=_..._-"'~_~..._~~_~_____-=--------=.=_ SCOPE OF SERVICES The following five steps form the foundation of the services to be provided. After this proposal is signed by both parties, it becomes the agreement for the services and the deliverables that Buxton will provide. . STEP ONE - DEFINING YOUR RETAIL TRADE AREA 1. A drive-time trade area will be defined for each of the City of Paris' distinct retail locations. Buxton uses a custom drive-time analysis that will define each location's primary trade area according to the time it takes to drive to a given location. Drive time is recognized as more accurate in reflecting the consumers shopping patterns than trade rings. The resulting drive-time trade area will be a polygon because of factors such as road network configurations, speed limits, time of day, and natural barriers such as parks and lakes. 2. A draft of the City of Paris' Trade Area map will be sent for review and comments before proceeding to the next step. STEP TWO - RETAIL POTENTIAL AND SITE DETERMINATION Buxton's initial analysis of up to three (3) distinct retail locations, selected by the City of Paris, will yield a recommendation of the site best positioned for retail recruitment. With that recommendation, the City of Paris will make a final determination of the retail site to be selected for retail matching. 1. Up to three (3) sites are submitted by the City of Paris for analysis. 2. Factors considered in the analysis include, but are not limited to: a. Psychographic analysis of households b. Demand for retail goods and services c. Existing retail and retail trends in the trade area and surrounding region d. Site setting, situation, and configuration e. Growth plans and relevant developments f. Retail goals of the community 3. Buxton ranks the retail sites and makes recommendations based on the trade areas analysis. 4. Retail site maps are sent for review and discussion. 5. The City of Paris selects one of the sites for complete analysis. The City of Paris is not limited to Buxton's site recommendation. Bu~/.[' on' l\.. IDentifying Customers 3 r' lJl ~ ~ ~ 9J " ~ . . , . a ~ . . . . . CommunitylD$ ~ ~""---=----"'--~-=---------"'.~~~~-~--=~-=_":::'''''-::-_--'''---~=~-_...",:".",,---- --=---~----=--=."'-~--~..:._- SCOPE OF SERVICES (continued) STEP THREE - IDENTIFICATION OF RETAIL MATCHES FOR SELECTED SITE Once the site for retail matching is determined, Buxton will compare the site's trade area with the established locations of individual retailers. This analysis results in a preliminary list of matched retailers. Only retailers with locations in trade areas similar to the City of Paris' trade area will be identified as potential matches. Buxton then refines the preliminary match list on the basis of other retail location criteria to yield a final list from which up to twenty (20) retailers can be selected by the City of Paris for the development of marketing packages. Buxton will provide the list of matched retailers to the City of Paris for review and discussion. 1. The City of Paris' selected site trade area is compared with existing retail location trade areas of over 4,500 retail and restaurant profiles in Buxton's proprietary database. 2. A preliminary target list of matching retailers is identified. 3. Preliminary targets are subjected to additional analysis. 4. Recommended list of matching retailers is determined and sent to the City of Paris. 5. Buxton reviews the list with the City of Paris for approval of a final list of matching retailers for which marketing packages will be prepared. BU1(tOll' IDentifying Customers 4 , , , . t . . . . . . . . . . . . t t ~ I CommunityJD$ ~""=......:;::.=-=~---~~=-- ---~-~- - - - ~--~___..=...!c";::;__~__""---___~~--,,,-__~=~__________~__ ___-"'-___ _ SCOPE OF SERVICES (continued) STEP FOUR - PUBLISHING OF RETAIL MARKETING PACKAGES Buxton will assemble two (2) individualized marketing packages for each targeted retailer. The marketing packages are intended for presentation to retailers as well as developers, potential franchisees, or other persons in a position to support the City of Paris' retail goals. Each marketing package is unique to the specific targeted retailer, providing compelling and precise information that demonstrates the City of Paris' qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retail match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic analysis of the trade area 5. Explanation of Buxton's methodology Additionally, the client will receive a reference binder that includes information provided in the retailer marketing packages. The City of Paris will be provided with the names of the individual(s) in the retail company responsible for making location decisions Buxton notifies each targeted retailer that the City of Paris has been identified as a potential viable location Bu)(ton" IDentifying CuStomers 5 ~ ~) ~) ~) .) ~ ~ ~ - ~ . . . ~ Community/Dab - ~~~-'=-=-"--~~---......-=..~~---=--.~----=---------=-- ---"'--~-~--~-~----------=..~---------- SCOPE OF SERVICES (continued) STEP FIVE - SCOUT SCOUT is an online marketing system that allows you to effectively use CommunitylD by enabling you to showcase your best retail site to achieve maximum results. You can access CommunitylD reports via SCOUT to reproduce maps, site-specific data and generate your own custom marketing presentations. . With SCOUT you are directly tied to City of Paris' password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT allows you to: · Visualize and count the households that appeal to specific target retailers · Manage all your retail specific data from maps to photos to zoning information in a central location · Merge your community's marketing materials with CommunitylD · Select the information that best makes your case · Store and retrieve information on retail buildings and sites · Organize all relevant retail information in a central data center · Present all of these electronically to recruit retailers and developers RETAIL MARKETING STRATEGY With the retail marketing packages, the City of Paris can immediately begin to market their community to the targeted retailer. Buxton will continue to be a resource and provide continued support for your marketing efforts. Your successes are our successes. BU)([on' IDentifying Customers 6 Oi' ~ , ~\ ~ .. , , , , , , , , " , , , , , , , , , , ~, ~ t . >> >> . . . . . . . . ~ . r'7 . CommunityJD& -~- ~~-=~-;:~-=--------=--=---- -~~-~-------"""':':_~~-----------'=----"-"'---=------...o--=-_~-",-----~_~ ------=_----..0<-___"'- PROJECT REQUIREMENTS In order to effectively start this project, the following are required to be furnished by the community: PROJECT LIAISON · The City of Paris will designate a project manager who will serve as Buxton's primary contact during the project. COMMUNITY INFORMATION AND REPORTS · City logo (vector file - request your ad agency and/or printer) · Addresses and descriptive information for up to three (3) sites that will be eval uated · Current traffic count data · List of planned retail, either proposed or in development, in the community · List of major, national, or regional retailers that have closed, left or moved from the community · General community marketing materials, data, and economic reports PROJECT LAUNCH · A conference call with representatives of the City of Paris and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are received BU1([On' IDentifying Customers 7 .... 11\ , , ~ ~ ~ ~ ~ , ~ ~ ~ , , ~ , , , ~ , , ~ , ~ ~ ~ t . t t t ~ ~ . . ~ . . . . I I r7I CommunitylD~ ===-"---~--=-=--=-=-----"-'--=--=-""""-'=""-~----"'--'=-~-~----~--~-~~....::~-------__ ----=-_--'O."-+L_~__ TIMELlNE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Buxton Responsibilities Start Provide to Buxton all necessary community information. Day 1 Participate in the launch call. Participate in the launch call. Day 6 Trade Area Map ships. Day 13 Approve Trade Area Map. Day 18 Retail Site Determination ships. Approve Retail Site Determination Day 25 and submit selection of site for retail matching. Day 40 Retail Match List ships. Submit selections of all retail matches Day 50 to be included in the Final Report and Retail Marketina Packages. Day 60 Final Report and Retail Marketing Packages ship. By adhering to this timeline, the CommunitylO deliverables (Retail Match Reports - both the hard-copy and SCOUT, the electronic version) will be sent on or before 50-days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances which prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5%) of the contract price to be charged. BU1(ton" IDentifying Customers 8 T ~ ~ ~ ., ., ~ ~ ., ., ., " ~ ~ ~ ~ ~ ~ ~ ~ , ~ , , , , , , , , , , , , ~ ~ ~ ~ . . . I ~. CommunitylD~ ~=-==...-';..-=~-..::::~~~-~-~___~...............~_ _~-::'___:o...~~_,=-_--=---.___--=-..;::..___.........;:;:___ FEE FOR SERVICES The Cost of CommunitylD is $70,000; payable as follows: 1. $35,000 due upon execution of this agreement 2. $25,000 due upon determination by the client of the site for retail matching 3. $10,000 due upon delivery of retail marketing packages Hard copies of all CommunitylD deliverables including marketing packages will be provided. SCOUT will be delivered for one-year with this agreement and includes the following: 1. Waived - Monthly maintenance fee of $1,000 per month 2. Waived - Set Up fee of $3,000 3. Two Pursuit Packages at no cost After the first year SCOUT will be available for a $1,000 per month maintenance fee that is not included in this agreement. Direct travel costs will be charged for any pre-arranged, mutually agreed upon travel associated with the project. This does not include travel associated with the presentation or negotiation of this agreement. For services specifically requested by the City of Paris and performed by Buxton outside the scope of this agreement, and hourly rate of $200 will apply. Additional Research Services (post analysis) Pursuit Packages (Match reports for additional specific retailers) $2,000 BU1(ton' IDentifying Customers 9 T ..T" ~ ~ It ~ ~ ~ , , , , ~ , ~ , ~ , . I CommunitylD$ -"-----"'~.....:::..-...:_::....=..:::.=_~~ 'O.~____~~_~~_~-----"'_=-""::'~ ~~__-=:.~__...::'~___~-'='.___ __~~~~-=~~ SIGNATURE PAGE This agreement is between the City of Paris and Buxton (the "Parties") for the performance of services described in this proposal. The Parties agree that. an independent contractor/employer relationship is created as a result of this agreement. Buxton will not be considered an agent or employee of the City of Paris for any purpose. The term of this agreement is one (1) year. This agreement may be terminated by the City of Paris at any time upon written notice of thirty (30) days. If this agreement is terminated, Buxton will be paid for services performed up to the date the written notice is received. This agreement shall be administered and interpreted under the laws of the State of Texas. In order to avoid paying State of Texas Sales and Use Tax, the City of Paris may be required to provide Buxton with a certificate indicating it is a non- profit corporation and not subject to Texas Sales and Use Tax. Agreed and accepted this day of ,2007. Pete Kampfer President - Economic Development City of Paris 1125 Bonham Steet Paris, TX 75460 Phone: 903-784-2501 David Glover Chief Financial Officer Buxton 2651 S. Polaris Drive Fort Worth, TX 76137 Phone: 817-332-3681 Fax: 817-332-3686 (Signature) (Signature) BU1([On' IDentifying Customers 10 ,. _"~_m.. ..-.T Bu"~[()n. IDentifying Customers M Community/a CommunitylD is a total retail identification and marketing program designed for community economic development programs. It enables local governments, economic development organizations and chambers of commerce to improve their economy and the quality of life of their citizens through retail sector expansion. Community/D Answers These Questions: · What is my retail trade area based on drive-time? · What are the lifestyles and buying habits of the consumers in my trade area? · Which areas in my community are the best locations for retail? · Which soecilic retailers should be my targets? · Who are the location decision makers for my target? r-Co~~unity ID Methodology II There are four major steps involved in developing Community/D. At each step the community is involved in the process and can make input into the analysis. The four steps are: I I I i i I i I ! ~_.~---------~ '-~--_._----- / Rings are not the same as Drive-Times "-."1 ( I 4-Mile Ring 8-Min. Drive Time B I Household Count 39,225 53,890 u"'\...[On@ Merchandise Sales $198 Million $274 Million -~--- ~ \,~~staurant s_.~_e s $169 Million $2.33 M._JIIIOn _ ) - - .. - ------' IDentifying Customers Step One: Define Your Trade Area Step Two: Identify Customers Step Three: Match Retailers and Restaurants Step Four: Target Retailer Marketing Packages l~__~ Step One: Define Your Trade Area Your Community's Drive-Time Trade Area People today shop by convenience, measuring distance based on time, not mileage. Community/D utilizes a comprehensive database that determines the time it takes to travel between any two points anywhere in the United States. A custom drive-time trade area is determined for your community based on how far customers are willing to travel to shop for various products and services. Step Two: Identify Customers lifestyles and Buying Habits of Consumers in Your Trade Area The CommunitylD process identifies and analyzes all the households in the drive- time trade area. Based on more than 4,500 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographies), the households in your trade area are profiled to gain an understanding of the types of retailers that would be attracted to your community. Our in-house databases include both traditional demographic data and the most current psychographic lifestyle information for over 116 million households in the United States (with up to seven individuals living in each of these households). 3 5 7 911131517 19 21 23 25 27 29 313335373941434547495153555759616365 The blue line indicates the profile of the consumer households in a community. Potential Retail Sites After determining the drive-time trade area and analyzing the household profiles within your community, CommunitylD rates those specific sites offering the best opportunity for establishing a successful retail center. Benefits to You · You will understand your retail potential from a retailer's perspective. · You will learn what locations in your community have the best retail potential. · You will have the ability to speak "retail." · You will use the same data, CIS and mapping technology used by many retailers and restaurants. CommunitylD~ ~t" CommunitylD' Ste Three: Match Retailers and Restaurants Retailers That Match Your Trade Area's Consumers Once the trade area profile is determined, the CommunitylO process matches the profile to the preferred customer profiles of thousands of retailers and restaurants. With this analysis, we can identify which company will view your community as an opportunity to establish a retail or restaurant presen~e. The blue line indicates the profile of the consumer households in a community. The red bars represent the specific retailer's customers. Similarities between the two profiles like the one above means this site is an opportunity for this retailer to open a successful store. If the profiles do not match, as in the above illustration, don't waste time trying to recruit this retailer - they won't be able to succeed at this site. r Communityla Retailer Match Report Retailer Match Report To clearly illustrate how well your community matches to the identified retailer's other stores, a match report is created. This match report compares your site to other existing store locations of the matched retailer. With this "quick view," the retailer will develop an understanding of what performance they can expect from locating a store in your community. RetaUer: XVI Cmnpllny Report Date: April 8, 2003 Site: State Highway 384 & Grice Road Your Community, USA Segmentation Profile(1)(10 Minute Drive TimeJ21 ,~ p,' I 3 ~ Tnde Area Comparison (10 Minute Drive Time) XVI Company Average Trade .lima($) Your Community, USA Site Trade Area Total PoputatlOll 43,925 17,278 43,826 17,811 12,870 27,160 Bu~ ~.Ion' Total Households Rllteller Dominant Segment Houuholds 9.772 Daytime (Workday) POputfilon(8) 19,170 ,,~s;~::: ......''''''r.__ <D.yI...."-",,, ~::~~";=~:;:~~~~:'~:,~"::::::::,:,'r~:,::,~-'"~'"1~od"~h"w. ~~:~::;.,0:.:";.,'::=','.~';;:.~;,;:.:.:,":.(~~~~,~:~'""'..., "'''' ..-..,~........" Y(....G,"'''''''"'Y U<lA. r..."u,"""'oI~.....~,,,,,,,,,,-!...,".,j_,,,,,,,,do..". IDentifying Customers 1- M;~ Community/IT Step Four: Target Retailer Marketing Packages These packages are created to enable you to effectively market your community to the targeted retailer. Each package will address a specific retailer and set forth the research results, illustrating to the retailer the opportunity for opening a successful unit at your location based on their site selection requirements. I-------------------~-------------------- ! ~~---- I I I i ~,.ie'.__.___ I L______________ BU>!.<.l!! _...<'._..._,.~..._,,~ "" ",..-..,.....-.....-.'''"'''.-...,...".-...... ,.._....~... ....,.......'"""..~_.~.." --,. "'"..~."_.,,...~.'~..., ~------~- ""'-~'.~' ._-,~--'"~.."."-~.., ~_, ."', "....~ ','.."'" C', ,," ,"..'~ ..~..., ..~~.~...."..'"....M._.".''';..._".. ~"._..~."......,.....,....H,~...,_.... :....~LIIlilyIU~ Rw~il"'''''ttl\Jloport L.-== -~::.-::"'..:.^~- j "..~""' .~" .,~, -~.,~..-., ',-- ..""_"""_'W_" '_'~_._. ',__... ""~,,_..~ .~..."."_._.,,_ '~'"M _'_'''''h.......,~'".......,~~. -~-"....."..._"~--- '~~J .' ~.. :.; " '._ .. .~.~"_' .J!., " r,~~ .. !~ __ R"=_~,__,~._.~ CommunitylD Highlights · A retail marketing system that can be implemented immediately. · Specific targeted retailers that can be successful in your community. · A marketing package customized for each matching retailer. · The names of the individuals at the specified retailers that make the site selection decisions. Bottom Line Benefits · Enhance your citizens' quality of lire · Crow your tax base · Stop leakage of sales tax dollars · Satisfy your citizens' desire to shop at home The Next Step: Three Easy Ways to Act Now · Co to our Web Site at www.buxtonco.com for additional details · Call us at 877-332-3687 · E-mail usatbuxton@buxtonco.com Bu~ \.IOn' IDentifying Customers r" ",it),; ,':,',' Community/DO Designed specifically for use in community economic development programs, CommunitylO provides step-by-step directions to attract retailers, restaurants and shopping centers. Ahead of the Curve If you are using off-the-shelf census and demographic data to market your community to'retailers, you are underselling your potential. Retailers need different data and information sets than those used in traditional economic development. CommunitylO gives you the data, information and selling tools to make a compelling case as to why your community can support a new store location and/or expansion. You sell your community from the retailer's perspective. A Marketing Strategy that Goes Beyond a Plan CommunitylO provides you, the community leaders, with the marketing tools to immediately implement a retail development program. It goes beyond a plan, allowing you to take the initiative rather than hoping something happens. With Community/D, You Can: · Rate sites in your community that offer the greatest potential for retail development. · Identify retailers and restaurants that match the buying and dining preferences of your residents, · Get your marketing message in front of retailers immediately, · Graphically present your competitive advantages in a logical framework that retailers need to make location decisions. · Maximize your efforts and resources by focusing on specific retailers and restaurants. Buxton's community clients have successfully recruited over 10 million square feet of retail. I Since 1994, Buxton has been the industry leader in customer analysis for the retail industry. Buxton helps retailers find the right locations for new sites and also identifies suitable retailers for municipalities that are expanding or redefining their retail mix. Buxton's more than 1,500 clients include Casual Male, The Container Store, California Pizza Kitchen, FedExKinko's and Petco as well as more than 300 communities nationwide. 2651 South Polaris Drive Fort Worth, Texas 76137-4479 817.332.3681 toll free: 888.2BUXTON fax: 817.332.3686 website: www.buxtonco.com Bu~ \.(On" IDentifying Customers ~'