Main Street America On Upswing In 2018

As big-box retailers like Kmart and Sam's Club announce closures, analysts say Main Street America has a bright outlook in 2018. Mom-and-pop shops and independent retailers offering something in addition to their products are especially promising. Spending was up for the holiday season in 2017, according to the National Retail Federation, which reported there was a 5.5 percent increase in holiday sales in November and December compared with the previous year.

“Whether they shopped in-store, online or on their phones, consumers were in the mood to spend, and retailers were there to offer them good value for their money," National Retail Federation President and CEO Matthew Shay said in a statement this week. "With this as a starting point and tax cuts putting more money into consumers’ pockets, we are confident that retailers will have a very good year ahead.”

The National Retail Federation's Chief Economist Jack Kleinhenz said that the trend to spend will carry over into the new year, with help from low unemployment rates, gains in the stock market and pick-ups in income.

"We think the willingness to spend and growing purchasing power seen during the holidays will be key drivers of the 2018 economy," Kleinhenz said.

Main Street communities capitalized on the holidays, and experts say the trend of people visiting local small-business shopping destinations is poised to continue.

“Shoppers will return to Main Street in 2018,” Forbes said in its retail predictions for the year ahead

Officials with Main Street America are inclined to agree.

“Experiential retail is one of the ways we’re seeing Main Streets compete,” Hannah White, director of engagement and outreach for Main Street America, told Patch about how retailers are staying competitive in the age of Amazon and online shopping. Main Street America coordinates the national Main Street program, which provides strategies for revitalizing historic districts.

"Retailers are getting creative about creating destinations for consumers, rather than just places to buy products or services," White said. "Think food or wine bars within grocery stores where people can enjoy a bite or glass on their way home from work. We’re seeing lots of arts and crafts stores hosting knitting groups or scrap-booking classes."

_{Pictured, Ellicott City, Maryland. Photo by Elizabeth Janney.}

Continued White: "These are the kinds of things that will draw people to Main Street, help create community, and differentiate a downtown shopping experience from an online shopping one.”

Todd Hardy, owner of Classic Plastic Bricks in Ellicott City, Maryland, said free experiences are also critical in drawing people to Main Streets.

The B & O Railroad Museum across the street from his business showcased the train garden he built out of Legos through the holidays for free. He also offered a free ornament-building course where people could buy the ornament if they liked it. He said 500 people showed up for the workshop, and 100 percent purchased the ornament.

_{Pictured, Toddy Hardy of Classic Plastic Bricks. Photo by Elizabeth Janney.}

Explaining how he can compete with retailers like Amazon, he said: "It's all the little things. Buying Legos online is great, but what if you need a few little pieces? Right now, you're going to pay for shipping."

He sells Lego parts that are no longer made and also allows people to sift and sort and buy individual pieces. "I have people coming from Pennsylvania, Delaware, Virginia, and they will sit here for hours," said Hardy. "Some have a list because you can't find this anywhere else."

In addition to offering experiences, Main Street communities leverage their brick-and-mortar status by creating a sense of place, making shopping downtown about more than just shopping.

For the holidays, Main Street in Macon, Georgia, used a community grant to create a Main Street Christmas Light Show, synchronized to local music produced by the Macon Pops.

In Vienna, Virginia, holiday shoppers were invited to check out businesses that were part of a window decorating contest and take a holiday stroll to historic sites and businesses that stayed open late for the occasion.

_{Pictured, Karin's Florist in Vienna, Virginia. Photo by Town of Vienna.}

And in some Main Streets, the businesses encourage shopping at one other's stores.

In Staunton, Virginia, the Staunton Downtown Development Association sells gift cards that can be used at any participating downtown business. Over the holidays, the organization created a "buy a $50 gift card, get a $10 gift card free" event before Christmas.

While the in-person experience is critical, brick-and-mortar businesses must have an online platform to greet customers, as well.

“Having a strong digital presence, and engaging in e-commerce – even at a small scale – is important,” Main Street's White said.

Nobody knows that better than the Pink Silhouette of Bel Air, Maryland. The store has more than 90,000 Facebook followers and routinely offers to hold pieces for fans who comment that they would like a particular product after the shop shares a photograph of a particularly fetching purse or outfit.

_{Pictured, The Pink Silhouette in Bel Air, Maryland. Photo by Elizabeth Janney.}

Earlier this month, The Pink Silhouette asked customers to help pick out which items to stock in the store by inviting people to "like" or comment on pictures.

Facebook isn't the only form of social media driving business.

Hardy said that he had someone come into his Lego store Monday who saw him on a popular YouTube channel.

"He was from Virginia, and now he's going to go home and make a video showing his haul," Hardy said of his young customer.

Because of the online component, this is one of most “transformative” periods for retail, according to Susan Reda, editor of STORES magazine, a publication of the National Retail Federation. She pointed to Amazon’s acquisition of Whole Foods as a sign.

“Companies are...blending physical and digital," said Reda.

She also cited the fact that in October, Nordstrom debuted Nordstrom Local, which allows shoppers to buy online, pick up in-store that day, meet with a stylist and have a glass of wine and manicure.

Consumers want an easy experience that consists of "see, touch, try-on and order," STORES reports.

As big-box stores work on creating experiences at scale, one credit card company says that increasingly, buyers are choosing to support small businesses.

Mastercard reported small businesses saw growth of 7.3 percent in sales year over year, compared with 4.6 percent growth in overall retail sales, according to Bloomberg.

Main Street America reports it has found housing preferences are helping to keep districts booming.

“...We’re seeing a growing trend in downtown housing, and Main Streets large and small embracing this as a way to create demand for businesses, particularly restaurants and those selling convenience goods,” White said.

In Dahlonega, Georgia, Main Street has helped rehab more than 100 historic buildings for commercial and residential purposes.

The town attracts people based on its place in history as the location where gold was discovered in the 1820s. At its centerpiece is the Dahlonega Gold Museum, which has inspired gold rush tours in the area. Surrounding it are more than 100 businesses, including restaurants and retail shops.

Some Main Streets market properties downtown for people looking to find a new home.

Dealers at the Antique Depot say they believe their location in an historic building near the oldest surviving railroad station in America is a factor in their success and staying power in Ellicott City, Maryland.

"The curiosity of the younger and the reminiscence of the older," antique dealer Dona Peters of the Antique Depot said, reflecting on Main Street's allure. "And the uniqueness. That's what brings people."

Photos of Main Street in Bel Air, Maryland, by Elizabeth Janney.

This article has been updated.