time pressure

Thesis: In a contracting economy populated by time-pressured consumers, downtowns need to rethink their entertainment niches to include and foster informal entertainments that are low-cost and convenient.

Most economic development experts have come to agree that entertainment niches are good fits with the assets of many downtowns and such niches have indeed flourished across the nation.

While “formal” entertainment facilities such as concert halls, legitimate theaters, rehabilitated movie theaters, sports stadiums and arenas can generate subsidiary economic benefits and make towns more attractive to residents, visitors and workers, they are often expensive to build and many small and medium downtowns do not have the means or the capacity to develop such large-scale formal entertainments.

In addition, data from the Bureau of Labor Statistics indicate that most American households began reducing their expenditures for formal entertainments even before the current economic downturn. With the vise closing on the discretionary income of most American households, it is reasonable to assume that entertainment expenditures may be among the first to be reduced. When you factor in the time pressures experienced by the modern household (and detailed in previous reports), formal entertainments seem likely to get further squeezed. In addition, as DANTH noted in our assessment of the future of downtown movie theaters, watching films at home and other home entertainments are eroding the downtown movie theater audience.

The good news? Downtowns of all sizes can develop vibrant niches based on informal entertainments to capture the potential lost audience for these formal entertainments. In a contracting economy populated by time-pressured consumers (research indicates that time –pressed families are increasingly looking for entertainment opportunities that last about 45 minutes rather than the two to four hours usually demanded by formal entertainments), downtowns can compete for time and dollars by providing low- or no-cost entertainments that are close by and do not require long car trips and expensive amounts of gasoline. This entails “rebranding” entertainment as something other than – or in addition to – theaters, arenas and the like. In this scenario, entertainment is “anything that amuses observers.” Reinforcing such informal entertainments can help to bolster the economic health of downtown – its housing, retail, office, and, yes, its formal entertainments.

Public Spaces

Great public spaces provide opportunities for people to engage in activities that they enjoy and that also interest and amuse nearby people-watchers. Think of the ice skaters drawing the ever-present crowds above the rink in Rockefeller Center. Similarly, in Manhattan’s Bryant Park, lounging patrons watch chess players – as well as each other. In Greenport, NY, a much smaller community, a carousel and waterfront location create a wonderful public space where people can watch and be watched by other people. Other downtowns have fostered entertainment with facilities such as:

model boat ponds
children’s pony rides
tables where people can play chess, checkers, or dominoes
Wi-Fi hotspot to access and cruise the Internet on laptops
places to catch the sun — a favorite pastime for office workers and young tourists in the spring and summer
places to buy food and eat lunch alfresco
outdoor cafes for sipping coffee and eating snacks
slot car racing for kids
interactive art installations that capture and play with people’s images, make music or move

Visitors will “perform” if the opportunities are there. Informal entertainments are usually public and usually priced right – either free or, when there are fees (e.g., to ride a carousel), affordable. They are also “sticky” activities. Retailers can feed off of the traffic the informal entertainments bring in, as demonstrated by the busy pedestrian traffic on the street next to Mitchell Park in Greenport, NY. Informal entertainments are also liable to be open when the public would want to use them as opposed to theaters, concert halls, etc. Most often they are child-friendly – and therefore mommy-friendly, too.

Work-as-Entertainment

Often overlooked is the delight and amusement people can derive from simply watching other people do their jobs. In particular, people have shown a great interest in watching craftsman and artists at work. Historical villages such as Williamsburg (VA), Sturbridge (MA) and Old Town (San Diego, CA) have long had many “demonstrations” by blacksmiths, glass blowers, bakers, weavers, etc. The Miami Ballet rehearses in a ground floor studio with a storefront window, which always attracts crowds of passersby and helps build the company’s audience. At the Torpedo Factory in Alexandria, VA – one of the most successful and innovative downtown retail projects in the nation – each artist and craft studio has windows and often open doors, so the public can watch the artists and craftsman as they create. At the Simon Pearce retail store at The Mill in Quechee, VT, visitors to this converted mill/retail location can watch glass being blown, ceramics being thrown and decorated and fabrics being woven, and then enjoy a meal with views of a waterfall.

This posting was condensed from my longer report by Mary Mann. To read the full report and find the complete sources for “Rethinking Downtown Entertainment Niches,” visit www.danth.com.

In addition, DANTH has created photo albums relevant to informal entertainments and work-as-entertainment that can be downloaded now, free of charge, from the Internet:

For the album on informal entertainments, visit:
http://picasaweb.google.com/dmilder/InformalEntertainmentActivities

For work as entertainment, visit:
http://picasaweb.google.com/dmilder/WorkAsDowntownEntertainment

For photos of the Torpedo Factory, visit:
http://picasaweb.google.com/dmilder/TorpedoFactory121607351PM

In recent postings I have detailed how retailers, over the coming five years, will be facing an environment in which shoppers, especially those in the middle-income bracket, will be having fewer discretionary dollars to spend and consequently inclined to give more weight to low price in their purchasing decisions. In this posting I argue that downtown retailers will best handle these trying circumstances if they understand and exploit the nexus of time pressure, proximity, convenience and customer service. Even in an economic environment where price is a leading factor, downtowns and downtown retailers can compete when they offer the time-pressed local shopper the proper convenience and customer service. Time pressure is what is making proximity again a powerful downtown asset.

Time pressure: Americans are more time pressed than ever and this is changing our society in many ways, sometimes subtle, other times not. Major golf outings are down 33%, major cultural centers like the Metropolitan Opera are shortening performances and intermissions to satisfy the modern customer who demands “express entertainment” and health clubs are offering 30-minute “drive-by” workouts for the busy-but buff-body. The most time-pressed group is working mothers with young children. One way these mothers are creating time for themselves is by spending far less time shopping, especially traveling to and from malls. Another is outsourcing food preparation through take out, sit-down and prepared meals. Time pressure is making consumers look for shopping opportunities close to home. It also inclines them to “satisfice,” i.e., to buy merchandise that is “good enough” in terms of quality and/or price, which sometimes makes it easier for downtown merchants with limited assortments to compete.

Proximity: Downtowns have always been closer to the typical residential shopper than that super-regional mall, but, as we all know, the allure of the mall with its vast retail selection, sea of parking and low price points has siphoned off downtown customers for decades. Now, time pressure and convenience (and gas prices to fill that gigantic SUV) are making downtown appealing again. Back in the 1970s, people might pile into the car for a 10 a.m. to 3 p.m. day at the mall – it was considered a leisure trip. This is not the case anymore.

Convenience: This means making visits quick, easy and, if possible, enjoyable. Time in and out is fast and/or well spent; products are easy to find. But can convenience compete against low prices in an economic crunch? Yes, if the other three factors of Time Pressure, Proximity and Customer Service come into play. Studies show that convenience can often beat price when it comes to household necessities like food and drugstore items. Even Wal-Mart, Home Depot and Sears are experimenting with smaller store formats to speed up the shopper experience – including self-checkouts. Downtown retailers with their intimate size are already there – but don’t hide the milk at the back of the store! Consumers get aggravated when they realize they are being manipulated and are losing precious time. Convenience also means that the entire downtown shopping district is quick and easy to navigate – busy streets are easy to cross, parking is well-marked and available, public toilets are provided and are user-friendly for moms with young children, etc.

Customer Service: This means providing customers– through personal services — a quick, easy and enjoyable shopping experience. There are numerous ways to achieve this including letting customers shop after hours, knowing their names and their favorite products, sending them birthday cards, providing cappuccinos, offering gift wrapping and delivering their purchases to their homes so they don’t have to carry them around town. Big boxes cannot compete on the same level (or they haven’t tried – yet!).

Downtown merchants can seldom compete on price, but they, alone and organized, can hit home runs on convenience.

For the full report on “The Nexus of Time Pressure, Downtown Proximity, Convenience and Customer Service” visit www.danth.com after May 1, 2008.

This posting was written with the inestimable assistance of Mary Mann.