Innovation in...Economics (Retail

Specialty retail has a strong opportunity here and that opportunity is downtown.

Specialty retail has been identified as a strong need for downtown Manchester. There are several ways to create a cluster of specialty retail through micro-spaces. These can occur as an “emporium” or market concept or could be separate units in creative spaces. Some examples to explore are:

• The Arcade Providence in downtown

Providence, RI, which is an awardwinning renovation that incorporates micro-residential space (250-800 square feet) over a micro-retail center.

A disaggregated approach to microretail is another approach to enhance specialty shopping. Manchester may consider a container park or small space retail incubator. The downtown container park in Las Vegas, NV embarked on this trend bucking the tradition of multi-million-dollar chain store development to create a place for independent small merchants. Finally, Manchester should consider a competitive program for key spaces for pop up retail, a retail business plan competition through partners, and special funding for targeted retail in downtown.

Manchester attracts $1 billion in retail sales per year. It is a retail powerhouse. Catering to a different market, South Willow Street and Mall retail will continue to accommodate region serving commercial tenants that are not well-suited for Downtown. There is room for growth at the Mall of New Hampshire that will focus on franchise restaurants and stores not presently in the Manchester market.

Changes in retail environments are being made with an awareness of the shifts in shopping behaviors. With e-commerce on the rise, almost 15% of all holiday purchases in 2019 were made online, according to a report from Mastercard (Source: Mastercard Economics Institute). To compete with online sales, retailers need to be part of an experience. Amenitized outdoor spaces incorporated into traditional shopping malls enhance the experience for shoppers. Some are being reinvented to become entertainment destinations. Mall expansions and partial redevelopments allow for formula-based retailers and restaurants to enter the market while making the shopping center a more inviting space. “Lifestyle centers” are helping traditional malls maintain desired levels of foot traffic. Drawn to the amenitized outdoor areas incorporated into redesigned spaces, patrons enjoy relaxing breaks between dining and shopping.