[DELRAY BEACH --- July 24, 2009] As confirmed by just-released statistics, Downtown Delray Beach’s retail sales volume from 2003 to 2008 increased by 48.7% while food/beverage sales volume during the same period grew by 41.5%.Combined, that additional sales volume totaled $87,559,672, according to Marjorie Ferrer, Executive Director of Delray Beach’s Downtown Development Authority.
"These numbers come right from the State of Florida’s Department of Revenue, tracking growth in monitored retail categories as well as in the three predominant food/beverage categories," she said.
During that same five-year span, Palm Beach Country’s growth in monitored retail categories was 21.2%, with a 16.6% increase posted County wide in the three predominant food/beverage categories.
Downtown Delray Beach's successful sales expansion is the result of a collaborative effort launched in 1998, Ferrer said. That was the year that the Downtown Development Authority, the City of Delray Beach, the Community
Redevelopment Agency and the Greater Delray Beach Chamber of Commerce launched a comprehensive cluster study for Downtown Delray Beach.
The study, under the direction of consultant H. Blount Hunter, defined geographic parameters of the Downtown area (I-95 to A1A), which was sub-divided into a series of eight clusters that reflect physical boundaries and functional differences.
"What we did was document the Downtown trade area," Hunter said. "This enabled us to start talking about retail. When you understand the mix and types of businesses, you can structure an effective promotional program."
Statistics from the 1998 launch year of the Cluster Study provided the base line for the subsequent five-year updates. Analysis by consultant Hunter offered crucial updates and direction.
"Overall the objective of the market analysis was to generate recommendations to guide Downtown Delray Beach’s on-going retail revitalization," said Ferrer, who has been working on that goal for the past 17 years.
"Blount Hunter told us in 2003 that Downtown Delray Beach had the potential to increase retail sales volume by $100,000,000 by 2008. We fell short of that goal --- but achieving a $62,014,504 increase is impressive, especially as these gains were posted during a time during which we lost 36 retailers and survived three hurricanes and the start of a very challenging economic climate."
Hunter’s recommendations included specific promotional events designed to draw consumers Downtown, helping retailers and restaurants success and promoting the strength of the area.
Delray Beach’s unique Downtown Marketing Cooperative relationship with the Downtown Development Authority, the City of Delray Beach, the Community
Redevelopment Agency and the Chamber of Commerce is key to the comprehensive marketing and promotional program.
"This is a strong collaborative effort where the individual members park their egos at the door and just come in and get to work for the good of the Downtown," said William Wood, President of the Greater Delray Beach Chamber of Commerce. "The Chamber helps business grow with a variety of programs, networking and more."
Diane Colonna, Executive Director of the Community Redevelopment Agency, agreed with that assessment. "The CRA facilitates development of new commercial tenants. One of the Agency goals is also to directly assist in redevelopment to encourage economic growth, creating a sustainable Downtown."
Contributions from the City of Delray Beach include "assistance in planning, setup, maintenance and police and fire support at the various events," noted Assistant City Manager Bob Barcinski. "The City’s Clean and Safe program has been very crucial in creating an appealing setting for businesses, encouraging consumers to come Downtown day and night."
"The DDA is the funding arm for the marketing programs," said Michael Listick, who chairs the DDA board. "Funds are provided by the 1 mil tax of the Downtown. Together these four ‘partners’ been able to provide a better environment for the Downtown businesses and help them succeed."
Elements of the promotional program have included an aggressive schedule of special events throughout the Downtown area; promotional programs to generate sales of Downtown Gift Cards; ongoing media presence locally, regionally and beyond; a dedicated Downtown website; active involvement in influential organizations including Visit Florida and Palm Beach County’s Convention and Visitors Bureau.
Two successful promotional programs pinpointed by Ferrer as key are the Valentine and Mother’s Days efforts.
"Blount Hunter told us we could ‘own’ these holiday by bringing customers Downtown to buy gifts, "she said. "Over a three-year period of special program, we have established our Downtown retailers as the source for ideal gifts for these holidays."
Looking ahead
Downtown Delray Beach leaders readily acknowledge that the economic outlook has become a bit more grim since the impressive sales figures were posted. They also emphasize that they are responding to the situation with programs to maintain the momentum and provide additional assistance to Downtown merchants.
As an example, Ferrer pointed to the innovative Strategies for Survival guide produced this spring by the Downtown Development Authority. "This is our own stimulus package -- a practical resource specifically designed to benefit all of the property owners, merchants and business owners in Downtown Delray Beach," she said.
Stategies for Survival includes information on promotional services available to Downtown businesses as well as helpful tips and insights into improving service and business practices to build and maintain customer bases.
Added to the Downtown’s calendar for the summer were special events designed to keep people coming to Delray Beach. The six-night Summer Nights on the Avenue series was revived after a three-year hiatus, and Tastemakers of Delray Beach was added for mid-August after the success of the March Savor the Avenue event.
Ferrer and her team of three promotional/marketing specialists meet with Downtown retailers and restaurateurs on a regular basis to maintain
communication, offer assistance with cooperative advertising programs and provide marketing materials that include handouts on upcoming promotions.
"We’ve been able to establish good relations with our Retail and Restaurant Advisory Committees," she said. "Now we’re moving to include the hotels in the mix."
A concentrated effort to expand the nighttime economy will also help maintain the growth. Stores, galleries and restaurants stay open later to welcome
consumers – both during the evening promotional events and on other nights. City programs focusing on lighting and security have encouraged evening patronage by consumers from Palm Beach and North Broward Counties.
"We’re all in this together," summarized Ferrer. "The advisory groups are working together very well to produce a stronger, more successful collaborative effort than we could achieve working individually."
Both the Cluster and Retail Studies are posted on DowntownDelrayBeach.com under the "Downtown Living" tab. For additional information, contact Marjorie Ferrer at 561-279-1380, ext. 16.
