Pulling retailers into Sedalia an elusive task

Some Sedalia residents may complain about lack of choices when it comes to retail stores.

The complaints will inevitably lead to a statement such as, “Why can’t we get a Target?” or some other store. While Pettis County is seeing a growth in the number of people who shop in the community, Sedalia may still fail to meet the complicated market analysis and demographics many big-named retailers consider before opening in new locations.

Susie Howe, of Sedalia, describes the city’s existing retail market as “basic and a little limited.” One can usually find a plain white T-shirt or pair of tennis shoes when needed, but Howe struggled to find a pair of “simple black shorts.”

If Howe could have her pick of new retailers to the area, Kohl’s and Target would be at the top of her list.

Shirley Alexander, of Sedalia, would like to see a “median-priced store for women’s clothing,” such as department stores that are in Kansas City or Columbia.

“There’s just not a whole lot to pick from,” Alexander said of Sedalia’s retail market.

Dawn Showman, 29, of Sedalia, thinks the city offers “a decent selection with good prices.” She would still like to see a mall in the community to offer a bigger variety of specialty shops.

“We’re big enough nowadays,” Showman said.

What do retailers consider?

So what does it take to attract new retail? Size of community, pull factors, major highways, distance from metropolitan areas, competition, similar companies in the area, population mix (by age and sometimes by ethnicity), and recent closures and openings are among the factors retailers consider when opening stores, said Linda Christle, executive director of Economic Development Sedalia-Pettis County.

“Many small companies follow a major retailer (big box),” she said. “Another is the draw to the area ... an example would be if there is a huge lake nearby for boating, there may be a reason to sell boat and boating equipment or tourism-related products.”

Some of the things working for Sedalia are its location with major highways into the community, median income higher than surrounding communities and its strong pull factor, as it is considered a trade center, Christle said. But Sedalia’s population could be a challenge, as 25,000 “seems to be the smallest, population-wise, for a lot of chain companies to consider,” Christle said.

Size is a factor for Target. One of the many details and criteria the chain considers when opening a new store is the trade population, or the pull of customers from the city or surrounding communities. Target uses a guideline of 100,000 people or greater, said Anna Anderson, a spokeswoman for Target.

“That’s what we’ve found takes to sustain a Target,” she said.

The company also researches market demographics, real estate and conditions, such as existing retail and the variety of stores. Ultimately, the company looks for a “balance of what works for Target and what works for the community,” Anderson said.

Growth in customers

But Pettis County is seeing growth. It was the only county in the West Central region that saw a growth in customers or had higher spending than the state average, according to the Missouri Economic Research and Information Center’s retail trade analysis published in January 2009. An estimated 43,000 customers shopped in Pettis County in 2008.

Many travelers stop in Sedalia on their way to the lake each weekend.

“It’s your halfway point to stretch your legs, get an iced tea at McDonald’s,” said Lida Johnson, of Kansas City, Kan.

Johnson and her daughter, Sherri Tucker, of Lee’s Summit, shopped at Big Lots on Friday. The pair said they were looking for “outdoor stuff.” They typically shop at Big Lots, JCPenney, Wal-Mart and Sutherlands when they stop in Sedalia each week on their way to the Lake of the Ozarks.

“This is less distance to drag things,” Tucker said.

Sedalia is a shopping hub for outlying communities such as Knob Noster and Otterville. Sisters Katie Williams, 21, and Kelsey Cosgrove, 18, come to Sedalia to shop at JCPenney, Maurice’s, Wal-Mart, Stage and The Buckle.

“I like it because it’s close to where I live,” Cosgrove said.

The sisters said there are limited retail establishments in Knob Noster, so they typically shop in Sedalia, Jefferson City or Odessa. They would still prefer more selections in Sedalia.

“I’d be happy with a T.J. Maxx or Marshall’s,” Williams said.

‘Promotion is key’

So, how can Sedalia go about recruiting the retail desired by shoppers and residents?

“Companies don’t just come; they do a complete matrix on areas and communities,” Christle said. “Promotion is key.”

Incentives such as tax increment financing (TIF), tax credits and low-interest loans are ways to attract new retail. Making the community inviting is also helpful, Christle said.

“If you want to attract a specific company, go to the corporation’s Web site, find out their criteria, and see if Sedalia meets it,” she said. “If it does, contact them often. If not, see if it is possible to build a case to counter their criteria and prove your case. You must contact them with statistical data that is factual.”

Christle doesn’t work specifically in retail recruitment, but she does gather and provide information for companies that make requests. She also contacts the city so those officials can prepare for queries as well.

“It is very impressive to a company when they walk in and everything is ready,” Christle said. “The city is working very hard and doing an excellent job to make it seamless for a prospective company, which is great to work with. Companies have a list of communities where they will consider expanding. We need to do everything in our power to make it easy for them to cross other communities off their lists and keep us on.”