Portage Ave Commercial Corridor Action Plan 1999

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External Trends A clear understanding of development and retail business trends is the basis for understanding actions necessary to improve commercial nodes. In a study of Portage Avenue, that means understanding not only the adjacent neighborhood's characteristics but also those of the Michiana Region and the nation as a whole. It also means understanding the dynamics of change and how the real estate and commercial development industry responds to society's needs and desires— even shapes them. Virtually all commercial corridors are in a constant state of transition, from their merchandise and personnel to the development of green spaces beyond traditional development limits. Change, like the addition of a WalMart or Meijer can be beneficial if it is understood, anticipated, and managed to take advantage of its momentum and direction. Following is a summary of national, regional, and local trends that drive change. National Trends The U.S. population is increasingly diverse; the majority of future growth will be in the minority and immigrant categories; The population is aging; For the first time in history, national research surveys show consumers more interested in saving time than money; Communication and technology have encouraged globalization of the economy, tele-commuting, corporate re -engineering and electronic shopping; The Federal Government has identified "urban sprawl" as a major problem requiring strong action to preserve the quality of life; The retail industry is undergoing dramatic reorganization as big box stores dominate many retailing categories; The country is over stored, but more stores are still being opened; Local and regional drug and groceries stores are being acquired by national chains changing what was a very dispersed industry into one where a few powerful companies offer very similar products and development styles; New retail business ideas are often pioneered on the Internet rather than in line stores; National retailers, recognizing that the spending potential of dense lower income markets equals the spending power of more affluent but more scattered markets, are looking for locations in established, lower income business districts; Fully prepared meals constitute more than 50% of all food purchases causing changes in restaurants and grocery stores, Entertainment and dining targeted to families are growth sectors; Consumers are fighting aging by investing in personal care and education; Housing within or adjacent to business districts has gained in popularity; There is a strong public desire for shopping "experiences" that combine entertainment with purchasing; Among young consumers, lattes are replacing liquor as the buzz of choice; "Cheap skate Chic" has led fashion conscious customers to discount chains in record numbers; Spending on the home is increasing with rent payments up 29% and spending on home furnishing up 50% in the last 10 years; Pets are "Kings of the Castle'; Portage Avenue Corridor Revitalization Plan October 1999 Page 5