COVER STORY, MAY 2005

THINKING OUTSIDE THE BOX
Big box users take advantage of real estate in urban locations.
Dorinda Hall Roberts

Roberts

But as cities reach critical mass and suburban developments are being built out, big box retailers looking for new markets are moving into urban settings.

Stores like Target, Staples and suburban mainstay Wal-Mart aggressively have sought urban sites, joining longtime city slickers such as Gap, Banana Republic, Ann Taylor and Talbots. For example, Target has opened a multi-level store in Pasadena, California; The Home Depot opened its first big box store in Washington in 2001 and its fourth in Brooklyn, New York, in 2002; TSX Companies opened multi-level T.J. Maxx stores in Westchester and San Jose, California; and additionally, Wal-Mart has entered the urban arena with a three-level store in Los Angeles.

Why all the interest? Successful urban revitalization efforts have created quite a stir. Cities such as Durham, North Carolina; Fort Worth, Texas; Denver; Boston; and Dayton, Ohio, are in the midst of revitalizing downtown development in hopes of drawing residents back into central cities. Sophisticated new townhouses and apartments like those in Highlands’ Garden Village in Denver, the Cannery in Dayton and West Village in Durham are attracting savvy young singles and married couples, in addition to empty nesters tired of suburban sprawl and long commutes. Furthermore, older neighborhoods continue to be rejuvenated by professionals who prefer the diversity and excitement of urban living to that of suburbia.  Studies show that nationwide city housing permit activity has increased in recent years, while national suburban housing permit activity has decreased.

Yet retail development hasn’t kept pace with urban activity. Many downtown developments lack suburban amenities like grocery stores, home design and hardware stores. Enter: big box retailers.

Given a choice, city residents would prefer to buy close to home. Worn out at the end of a long week, they don’t want to spend weekends on the road or at crowded shopping arenas. Convenience — regardless of cost or selection — is now the shopping mantra. 

Research shows people want something old that’s new again, such as Main Street environments and downtown-like experiences. A study released in 2000 by PricewaterhouseCoopers estimated that 7 percent of America’s 2,800 malls are dead or languishing and another 12 percent are headed in that direction. 

Achieving that Main Street ambience carries a whole new set of challenges for big box retailers that have relied on a formulaic approach to ensure success in suburban locations. The primary issue: How to make stores the size of airplane hangars and their parking lots fit into smaller, more restrictive, urban developments?

Spatial Requirements

Space is an overriding issue for big box retailers in urban locations. Generally, suburban sites are easily accessible with plenty of room for loading docks, staging areas and customer parking. Urban locations usually are smaller and often sandwiched between existing structures or located adjacent to neighborhoods. Therefore, cost-effective design is critical.

To ensure sufficient space, retailers may purchase or lease multiple properties, or they may design stores with multiple floors. Some big box retailers are now specifically developing prototypes for smaller urban locations. In some instances, they are coming up with unique designs. Lowe’s recently built an atypical store in Brooklyn in a newly revitalized area along the Gowanus Canal. Building costs were significantly higher, not only because an existing prototype could not be used, but also because site demands included rebuilding a part of the canal wall and a venting system for contaminants.

Customer access also must be considered carefully in urban locations, as areas for parking, loading and unloading usually are limited. One solution is a vertical design with parking located in the basement, on the roof or on adjacent decks. Large amounts of money are involved here, so an upfront analysis and careful selection of the most cost-effective design is important if the store is to be profitable. Another consideration includes moving  merchandise from the store to the shopper’s vehicle. Urban stores frequently install freight-sized elevators and escalators that can support shopping carts to move customers and their purchases from floor to floor and from car to store and back again. Separate access also must be designed for loading docks and internal staging areas. 

Further, an analysis of loading dock accessibility should be completed. Some 18-wheelers may have trouble negotiating tight city streets, and some cities regulate hours when deliveries can be made.

Maintaining Integrity

Land assemblage and zoning can be complicated as well. Cities eager to maintain the architectural integrity of older business districts and neighborhoods may have stricter design and signage requirements. In addition, area residents can be adamant about maintaining the character of their neighborhoods and willing to go to the mats to protect them.

One solution: Retailers are partnering with small stores with attractive storefronts. For example, a big box retailer could be cocooned among boutiques, donut shops, cleaners and coffee houses.  

Furthermore, traditional colors and signs that retailers may consider essential to their brand also may be limited, and creative solutions are the answer. Target, for example, is using its “bullseye” symbol as its recognizable brand, an element more easily incorporated into varying architectural styles.

Big box retailers are rethinking product mix for urban locations. Most city residents aren’t interested in large trees, riding lawn mowers or gazebos. As a result, “garden centers” that are usually a significant part of suburban hardware stores may need to be downsized or eliminated. Flexibility, creativity and sensitivity to community needs create the recipe for success for big box retailers as they strive to generate the revenue necessary to be profitable.

The Bottom Line

Smart retailers that expect to turn a profit in urban areas must do their research, be aware of neighborhood and political concerns, and conduct a thorough analysis to determine the most cost-effective and neighborhood-friendly structural design.

Engaging professionals with the necessary expertise and a proven track record in inner city development can streamline the entire effort and give stores a head start on profitability. 

A good architectural and engineering firm will understand political environments and neighborhood concerns. They will have the expertise to serve as mediators to neighborhood groups and city staff and the flexibility to adapt exterior design as necessary to meet code and neighborhood requirements.

They also will be able to address the ins and outs of urban development. Top firms can assess site and building conditions, in addition to gaining entitlements from the city. They can come up with creative designs to maximize available space and run a thorough analysis to determine the most cost-effective approach, and they also have the expertise to tackle issues such as remediation, asbestos and hazardous waste.

Success in the city means thinking out of the box, for which a strong, creative architectural and engineering firm will lead the way.

Dorinda Hall Roberts, A.I.A., manages retail projects for Carter & Burgess in Florida and the Southeast. She has practiced architecture for 23 years and has extensive experience in retail design and design management.

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.