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S.A. - Page M6126 <br />Retail that Fits Downtown Redwood City <br />Communities must have the best location conditions for retail based on demographics, shopper <br />preferences, location requirements of retailers, and city policies that encourage retail. An Apple Store or <br />another iconic retail chain is ideal, but the decision to locate in a given city is driven by market <br />considerations and whether the store can make enough profit to justify construction costs and operating <br />expenses. <br />These stores typically choose co -locations where there is strong synergy with other stores (found in <br />shopping malls and dense, urban areas). Indeed, retail businesses do not create demand; they respond to <br />demand. If the City continues to attract more people working, living and visiting the Downtown, then <br />retail businesses should follow. More people working and living in Downtown Redwood City has <br />contributed to the diverse, thriving food and cafe scene. <br />Sales tax revenue reports show that Redwood City has sales leakage in the categories of women's, men's <br />and family apparel, and shoes. Even though a range of retail shopping options surrounds the city, including <br />two regional malls, there is a location opportunity in the Downtown for unique, boutique retail stores that <br />sell clothing and accessories. The challenge is finding vacant space with affordable rent that meets the <br />needs of retailers. Three retail stores, Pomegranate Seed, Brick Monkey 2, and Pickled (women's clothing <br />and accessories), have done business in the Downtown for several years. The owners have developed a <br />loyal clientele mainly by understanding and providing what their customers want. <br />There is also an opportunity attract unique "hybrid" uses. For example, Morgan Hill has a brewpub that <br />also sells running shoes called Running Shop and Hops (http://www.therunningshopandhops.com/). <br />Successful retail stores know they need to be creative and receptive to changing customer preferences <br />and tastes. <br />Retail Vision and Guiding Princioles for Recommendations <br />Before developing recommendations, the task force developed a proposed retail vision for Downtown <br />Redwood City: <br />"Redwood City's Downtown District will be the "heart of the Peninsula" — an active, vibrant and charming <br />retail destination where a variety of retailers provide a unique, friendly, and convenient shopping <br />experience for residents, visitors, and workers in a clean, safe, green, and walkable environment." <br />The chart below reflects guiding principles that were developed by the task force to frame various <br />recommendations. The task force also recommended that the City develop a "Retail Action Plan" that <br />incorporates the following recommendations and any best practices that staff believes is appropriate and <br />legally acceptable for strengthening retail in Downtown Redwood City. <br />The task force's recommendations took into consideration the Downtown's existing conditions: <br />demographic and economic indicators, physical infrastructure and layout, and current business mix; its <br />strengths and weaknesses as a location for stronger and more diverse retail businesses; best practices <br />used by other downtowns; and factors retailers need to succeed in a competitive, fast paced and changing <br />marketplace. <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />101150 <br />