Successful events, marketing outreach critical to sustaining valley retail through difficult season

Public Record, The, Nov 25, 2008 by Altman, Alex

Last week, The Public Record reported on the slower build up of seasonal traffic this year in the Coachella Valley, and consulted real estate experts to examine the effects of part-time residents on the valley's real estate segment. The concluding part of the series turns to the retail segment, with Old Town La Quinta as a case study. How does this season's retail traffic compare to years past? How are retailers coping with fewer shoppers? What strategies can they employ to weather the times ahead?

"We have been bracing ourselves for a difficult season," says Leslie Locken, Property Manager for Old Town La Quinta. "It has always been difficult to predict what our second home residents will do. And while a clear picture has not yet emerged this season as far as traffic patterns, our seasonal visitors seem to be returning to the valley in a trickle rather than a pour."

Despite their slower return, Locken points to attendance of local events and sales numbers as evidence that the traffic is out there, it just needs to be more actively sought. "So far we've been pleasantly surprised with event attendance and encouraged by our sales numbers. We are seeing great traffic patterns on event days, and even better, seeing many event attendees walking around with shopping bags, meaning they've made purchases."

Hosting successful, bustling events is a critical strategy for retail centers struggling to give consumers a reason to overcome their (perfectly understandable) concerns and to get out and buy. In developments like Old Town, which is located in a tucked away setting, events are doubly important. Old Town's recent events, Art Under the the Umbrellas," says Christi Salamone, Executive Director of the La Quinta Arts Foundation. "We produced the first show on October 11 this year, as opposed to the usual November start date. With traffic building a little more slowly this season, we were a little apprehensive about attendance. But we were delighted by the response, and our November 8 event was the best attended in its 6 year history."

Salamone believes that reaching out to tourists at hotels, seasonal residents, and full-timers is key to drawing crowds. "This year we've had a great mix of locals, seasonal residents, and tourists attending for the first time. We work very closely with the areas resorts and hotels, so we do get significant hotel traffic. Many of these people drive in from the coast, from places like Newport Beach and Costa Mesa. Locals respond to the anticipation of complimentary live music, and the opportunity to view works of 74 artists from as far away as the Bay Area, free of charge." Attendance at the November 8 installment of Art Under The Umbrellas was reported at over 1,000 attendees. Encouragingly, attendees are not just looking; Salamone reports that artists have been as successful this year as ever before.

Locken views regular, well-attended events as absolutely necessary to local retailers, particularly in a down economy. "In this economic climate, buyers need that extra reason to get out and visit shops," she says. "We kicked off our Sunday Farmers Market two weeks ago and the response has been amazing." Locken reports crowds of 1,500 to 2,000 people visiting the market, which sells fresh produce from farmers within 100 miles. "Farmers have been selling out, which is fantastic, but there is also an enormous additional benefit to the Old Town retailers and restaurants.

According to Locken, some retailers have reported as many as 65 visitors per hour in their shops on event days, a number inconceivable on an average day of the week. For their part, Old Town's restaurants, Stuft Pizza, The Hogs Breath Inn, and the Coffee Company, have all reported the busiest days in their history, and are planning to use additional staff on event days to handle the crowds.

In times as tough as these, event days can make the difference between a profitable month and a month in the red.

Wells Marvin, owner/developer of Old Town La Quinta, points out that, no matter how good an event, in this economic climate it will not succeed without aggressive and effective marketing. "We're seeing very encouraging numbers at Old Town, and events are a big part of that. But we need effective promotion to drive traffic to those events. Especially now. There is no denying that the market is tough, but were redoubling our efforts to promote Old Town as a relaxing, enjoyable destination."

To that end, Marvin identifies outreach to hotel concierges as important for getting the word out. He also mentions a unique cooperative advertising partnership with the City of La Quinta, La Quinta Resort and Club, Embassy Suites, and SilverRock Resort as a means of pooling advertising dollars to extend promotional reach. "Working together, were able to reach audiences we'd never be able to target if we advertised individually," says Marvin. Going forward,' advertising will appear in the programs for both the Bob Hope Chrysler Classic and the Skins Game, among other places. "We're promoting La Quinta as a whole as a great golf destination, but also as a wonderful place to visit. We're hoping to grow the pie so that everyone's slice is larger. As the Main Street of La Quinta, Old Town only stands to benefit from this."