For small retail businesses, the door has just about shut on the idea of trying to compete directly with the vast selection of online merchants or the overwhelming pricing power of massive big-box stores.
Yet a new door is opening, and it's one where small businesses do more than provide a place for someone to shop. Instead, the most vibrant venues sell a lifestyle choice, actively supporting communities of common interest. Through such programs, retail outlets can build experiences and affinities that online shopping sites cannot replicate.
See also: 9 Ways to Fight Back Against Your Online Competition
Retail storefronts have suffered from the economic slowdown as well as the reduced need for inventory-based retail establishments in an era of online shopping and mega-stores. Yet at the same time, the reduced competition for retail storefronts has made it easier than ever to establish a physical presence at street level. The conditions are right for a golden age of retail experimentation.
Property owners make most of their revenue from above street-level space. But when a property manager has to put a "for lease" sign on a highly-visible retail storefront, occupancy rates suffer and the neighborhood as a whole becomes less vibrant and attractive. Market trends have made long-term retail tenants harder to find, which means that anyone with a good idea for the short-term use of storefront space can now make a strong bid to occupy that space at a very low cost.
New Uses for Vacant Storefront Space
Storefronts Seattle is one of the organizations that have emerged to take advantage of these opportunities. It serves as a broker, helping commercial property owners to fill vacant storefronts with art installations, residencies, and creative enterprises. By accepting temporary tenants for a three-month period, the property owners provide a welcoming street presence for the building's occupants, while also contributing to the viability of the neighborhood for other prospective renters and entrepreneurs. "It does something quantifiable and tangible to improve neighborhood safety, beautification, and ultimately the square-foot value of the space," said Matthew Richter, Storefronts Seattle's program manager.
The Storefronts Seattle program selects participants through a competitive application process. The winning entries are matched to available space for three-month periods, and those selected are responsible for paying utilities, insurance, and a nominal $1 rent. Storefronts Seattle manages the program, so that building owners need not evaluate the relative merits of dozens of applicants.
The temporary nature of each installation fosters a greater degree of creativity and experimentation than would ordinarily be seen in a retail space. Usually, a store going out of business has a negative impact. Here, the turnover between storefronts is part of the excitement for the community and participants. "It makes for a fun and dynamic streetscape," said Richter.
Seattle's Pinball Wizards Set Up Shop
So far, the biggest success story for Storefronts Seattle has been the Seattle Pinball Museum, a combination of historical exhibit, clubhouse, repair shop, and hands-on interactive arcade.
Charlie Martin, a carpenter by trade, purchased his first pinball machine three years ago as a way to coax his 17-year-old son away from the television set. The pinball machine broke after two months, and so Martin bought a second machine to keep everyone entertained while he figured out how to fix the first one. After a year, he had a total of eight machines in his stable.
When you own electromechanical devices with hundreds of moving parts, you spend plenty of time figuring out how they work. You'll also quickly meet the other pinball aficionados in the area, trading repair tips and getting in a few games during a house visit. However, playing pinball hasn't yet acquired the social acceptance of, say, watching football or playing Texas Hold 'Em. "Most of my friends are married, and their wives don't let them have pinball parties in their houses," explained Martin. "We thought that we should have a clubhouse."
When he discovered that the modest seaside town of Asbury Park, N.J. had its own Silver Ball Museum while the world-class city of Seattle did not, Martin's civic pride came to the fore. "I made it my personal goal to bring a pinball museum to Seattle," he said.
Today, the for-profit Seattle Pinball Museum has been operating out of a storefront in Seattle's International District for over seven months, offering open play to the public on over three dozen machines (and more to come) for a $7 entry fee. The museum also holds repair classes for machine owners and accepts machines on loan for exhibits.
A Win-Win for Landlords, Retailers
The factors contributing to the viability of Seattle Pinball Museum hold some lessons for other retailers in today's Internet-dominated marketplace. Pinball is not something you can replicate online, on your mobile phone, on your tablet device, or in your living room. You don't have to worry about customers scanning the barcodes on your inventory to find better prices online or to evade sales taxes through a willing out-of-state accomplice.
Given the rapid success of Seattle Pinball Museum during its initial three-month term, Seattle Storefronts renewed the deal for a second term. "We had some startup costs, for insurance, machine acquisition, utilities, and licensing, but we didn't have to worry about $1,500-$2,000 per month rent on a storefront," said Martin. "Without Storefront Seattle, the Seattle Pinball museum would not exist."
As a destination for people who might otherwise not visit the International District, the museum attracts people then who patronize area restaurants and other businesses. With fewer vacancies and higher foot traffic, property owners have an easier time renting out other empty storefronts in the neighborhood. It's one of those rare win-win situations, with the added benefit of giving entrepreneurs the opportunity to experiment with new business models at lower startup costs.
Having graduated from the Storefronts Seattle program, the museum is entering into an extended lease that will take it to 2012 and beyond.With 200 to 300 visitors per day on a busy weekend, they may have already outgrown their current space.
Cindy Martin, Charlie's wife, keeps the books and runs the museum on Thursday and Friday evenings after her day job working at an orthodontist's office. Also, last year she supported her husband during his struggle with prostate cancer. "Instead of summer vacation, it was intensive radiation treatment and therapy," related Cindy. "The treatments ended in August - the same day the Storefront [Seattle] opportunity presented itself."
"One door closed, and another opened," she added.
See also: 9 Ways to Fight Back Against Your Online Competition
CREDITS:
Illustration: Tamara Schneider
Photo: Andy Ahlstrom
