HomeMy WebLinkAbout5.b. Retail Trends
EXECUTIVE SUMMARY
Port Authority Meeting Date: December 21, 2021
AGENDA ITEM: Retail Trends and Land Use AGENDA SECTION:
New Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.b.
ATTACHMENTS: National League of Cities Re-envisioning
Retail APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
BACKGROUND
Retailers are expected to open more brick and mortar stores than they close for the first time since
2017. In a fast-growing community like Rosemount this presents an exciting opportunity to attract
new business and become a more self-contained retail community, lessening the need for residents
to shop elsewhere. Historically, Rosemount has segmented development by use and land use
designation. Current retail trends and growth areas often encompass multiple uses and differ from
past single use commercial areas. Looking forward staff believes it is important for elected officials
to understand the intersection of retail trends and land use, so they are able to make informed
decisions on projects that may differ from the historic development patterns.
Retail Trends
Box Stores: Traditional department stores are still closing more stores than they are opening.
Specialty retailers are seeing more of a mixed bag, with growth in stores location for companies
like The Home Depot and Dick’s Sporting Goods. Others like CVS are closing locations.
Experiential Retail: More stores are adding experiential space to attract shoppers. Dick’s Sporting
Goods and REI are including features such as climbing walls and putting greens. Clothing
retailers, such as Levi’s, are including cocktails lounges.
Grocery Anchored Open Air Shopping: These shopping destinations include larger, open-air
shopping complexes as well as strip malls, which typically feature an anchor store and several
smaller stores or services like pharmacies and fitness studios. Grocery stores are often the anchor
and help drive their success. Foot traffic in these suburban open-air shopping areas has already
surpassed 2019 levels. Neighborhood-embedded shopping centers that could accommodate
outdoor experiences were well positioned to quickly recover from the pandemic. These centers are
generally mixed and include more streetscaping, pedestrian connections, and quasi-public space
that can be used for live events that drive additional foot traffic.
Blurring of Retail and Distribution: Stores have become integral in fulfilling e-commerce orders.
They serve as distribution hubs and convenient places for shoppers to pick up and return online
purchases. As online sales grow, so too does the cost of shipping goods to customers’ homes.
Retailers are finding it is less expensive to ship items from their stores, which are located closer to
where people live. For example, Target estimates that it costs on average 40% less to ship orders
from its stores, compared with the expense of shipping from its warehouses.
Impact on Land Use
Staff expects Rosemount will begin to see a divergence between retail trends and the City’s
existing code. In the near term it is important to acknowledge these trends as new projects are
considered by the Planning Commission and Council. It is likely development and new retail
projects will ask for deviations from the existing code to accommodate the changing landscape.
Some examples include:
o Reduced parking in favor of patio or quasi-public space.
o CUP requests to allow additional uses within a commercial district.
Example: Small-scale or artisan manufacturing — businesses creating a tangible
product that can be replicated or packaged — in a retail space.
o Retail stores that also function as distribution centers.
In the longer-term land use and zoning regulations should be designed with flexibility that
decrease regulatory hurdles. A code analysis would help to find obsolete overly burdensome regulations
and streamline the code in a more future oriented way. For example, broader, more accommodating
definitions of commercial uses has helped cities ensure responsiveness to market adjustments and
encourage shorter periods of vacancy. Acknowledging the importance of public space and neighborhood
connectivity, dated regulation related parking minimums, landscaping, sidewalk width, and circulation
could be brought in line with current trends. Staff believes keeping pace with these trends is pivotal to
Rosemount maintaining its reputation as a pro-growth and pro-business community to invest in.
RECOMMENDATION
None. Informational and discussion item.