New analysis of downtown business mix issued
The business development committee of the Birmingham Shopping District (BSD) issued an updated analysis of the business mix in the downtown area of the city at the Thursday, December 5, meeting of the BSD board.
The analysis changed only slightly from numbers issued a year ago by the BSD committee which has been working on the analysis to serve as a tool for the BSD and possibly landlords in an effort to attract news businesses to keep the downtown shopping area healthy.
In terms of the goals of the business development committee, the new report lists three objectives: recruiting businesses that will appeal to office workers and residents to drive daily foot traffic; identify and recruit regional small businesses to fill gaps in product segments not currently available; and influence national retail attraction, especially in the apparel categories, and rebalance the business mix toward higher-end, sophisticated and experiential retailers who have a high-pull factor.
Among the conclusions of the report, the business district needs to better meet the lunchtime needs of office workers and residents by recruiting healthy fast casual options to help drive daily foot traffic, especially as employers begin to embrace a return-to-office policies. According to the report, quick service food options in the city account for 33 percent of restaurants now, with full service restaurants accounting for 55 percent of existing food business. Of the full service restaurants, 45 percent have a “luxury” price point, according to the BSD analysis.
On the issue of retail options for shoppers, the report shows that 27 percent of existing stores are national and 73 percent are local retailers. The reports also suggests that there is “likely headroom” for recruitment of national retailers “without affecting the local community feel” of the downtown shopping area.
The business mix analysis also concludes that the top three retail categories represented in the shopping district are women’s apparel, jewelry and watches and furniture and home products. The report, when comparing the business mix with two other downtown areas in other states, says that the apparel categories could use further development while suggesting that the furniture and jewelry/watches categories are over-developed. There is also mention in the report that in a 2023 poll, respondents said they wanted more retail and less nail and hair salons.
Missing from the downtown business mix, according to the analysis, are retailers in the categories of books and entertainment, electronics and technology, and toys and hobbies.
It was suggested at the BSD board meeting that further discussion will focus on how to better present the Birmingham area to potential new retail operations.
