"While sold signs have been quick to spring up on residential units in new downtown developments, new retail in the city's core has been slow to follow. In recent months, the plans for retail at Shelburne Plaza have been significantly downsized, and a lack of demand for retail was cited as a driving factor in the scrapping of a proposed development near Thoroughbred Park. It has led some to speculate on what it will take to make downtown attractive for new retail investments, and whether a truly vibrant downtown can exist without a strong retail base.
Despite these concerns, some retail shops at the city's largest downtown shopping destinations, Lexington Center and Victorian Square, have survived for decades. In speaking with downtown store owners about their businesses, it's clear that they still face the same persistent challenges that have plagued the city's center for years — namely the nagging misperception of parking problems and a lack of interest from many of the city's suburban dwellers. At the same time, however, growth in convention traffic, more patronage from the local college crowd, and a slowly growing contingent of customers tired of fighting the suburban holiday shopping crowds have been positive signs for downtown retail locations.
"We are more the local tourist center," said Caroline Puterbaugh, mall manager for Lexington Center. "The community really doesn't come down and support downtown retail like they should. We do have our regular customers who come in from the community, but that's not what supports the merchants."
What has been driving business for the Shops at Lexington Center is the growing stream of convention goers, event traffic and tourists. Between January and October of 2007, more than 1.2 million people passed through the Lexington Center's doors, and 2008 is expected to be a record-breaking convention year. Organizations as varied as the International Jugglers Association and the National Rural Letter Carriers Association, among others, are scheduled to converge on downtown Lexington during the Center's historically slower summer months next year.
Downtown businesses are hopeful that the new downtown developments will bring a bump for business, but they aren't counting on it as a panacea for downtown retail, Puterbaugh said, and the Lexington Center is not looking to change its business strategy at this point.
Almost all of the Lexington Center's roughly 20 shops are locally owned and operated, Puterbaugh said, and the only retail space currently vacant is one small first-floor kiosk.
Across the pedway at Victorian Square, the vacancies are more visible. An overall tight economy has taken its toll on some businesses, said Sandra Duvall, assistant manager, but many Victorian Square tenants are reporting that they are up this year over last year as well. Cosi opened in early November as a new lunch spot in the mall's central atrium. At the same time, the center has lost longtime tenant Hutchinson Drug Store, whose owner retired last month.
"It kind of cycles through, like any other retail," Duvall said. "Just like Fayette Mall, you'll have stores go and new ones come."
Like most downtown locations, Lexington Center and Victorian Square don't attract the larger national stores that tend to prefer suburban developments. The mom-and-pop stores that comprise most of the downtown retail businesses don't always have the stability of the national chains, but they offer higher levels of service and less common product lines that many downtown shopping regulars have come to appreciate, Duvall said.
The variety of independent, locally owned businesses has also made Victorian Square more attractive to a wider customer base, Duvall said.
"It used to be that our largest customer group was women ages 35 and above, but now it has kind of changed," Duvall said.
Stores like Miss Priss and Brooklyn Sports Grille & Pizzeria are attracting more of a college-age clientele, Duvall said, while the Explorium and the Lexington Children's Theater draw an even younger crowd, along with young mothers and their families.
Both Lexington Center and Victorian Square are still working to improve misconceptions about downtown parking availability, Puterbaugh and Duvall said. In addition, the city has been making improvements to the parking garage on Short and Broadway, and Victorian Square management is working with them to incorporate more visible signs to indicate parking availability in the near future, Duvall said.
"It's just a matter of getting the information out there about how easy it can be," Duvall said.
Still, some shoppers can't be convinced until they experience it for themselves, Duvall said. For that reason, Victorian Square also hosts events to provide incentives for downtown shopping and encourage more retail traffic. The downtown mall will be hosting a holiday open house event on November 23 from 3 p.m. to 7 p.m., offering entertainment, crafts, and opportunities for prizes and gift certificates with any $10 purchase.
"I think downtown is on its way up," Duvall said. "We've always been happy with what we've had down here, but I think that we're going to see a big difference — more arts and cultural activities and events and promotions — and we're just excited to be a part of it."
JILL STOFER, MAIN CROSS GALLERY
As a clay artist and business owner, Jill Stofer tries to keep her focus on local interests.
Stofer opened Main Cross Gallery in the Victorian Square Shoppes in 2000. Her downtown location fits well with her mission to emphasize local art at Main Cross, she said. Tourists represent a solid part of the client mix for Stofer and many downtown retail locations, and they appreciate the creative expressions of local artisans that aren't available at larger national outlets, Stofer said.
"I think what we have is unique enough that you can't find it anywhere else," she said. "It has a real appeal for out-of-town people as well. They can shop the chains in their own hometowns."
Main Cross features a variety of media, from steel sculpture and blown glass to silk scarves and acrylic paintings.
Aside from fitting with her business strategy, Stofer said a location in the center of Lexington appeals to her personally as well.
"I love being downtown, and the historic significance of this building is really nice," Stofer said.
JEFF MILLER, HOWARD & MILLER
As Victorian Square's second oldest tenant after DeSha's, men's clothier Howard & Miller has weathered the ebb and flow of downtown retail activity. Owner Jeff Miller, who has worked downtown for 21 years, said his store caters to the more tailored tastes of the local horse industry as well as downtown professionals in the legal, banking and investment fields. In serving this customer base, Miller said his downtown location has served him well.
A recent resurgence of interest in dressing the part, particularly among younger men, has been a promising trend for the clothing company, said Miller, who has been stocking more brands like Burberry, Vineyard Vines and Bill's Khaki's that appeal to the younger demographic. Miller also sees the recent residential developments as "a nice shot in the arm for downtown."
But the best boost for downtown retail, Miller said, would be getting more of it.
"Interest breeds interest," Miller said. "If there are things down here for people to look at, I think it will help bring the crowds back."
CAROL FOLEY, THE KENTUCKY STORE
The early success of UK's football program this year has helped business for Carol Foley, who has owned the Kentucky Store with her husband, Russell, since 1995. Her shop on the second floor of Victorian Square sells an assortment of Kentucky and UK memorabilia, including everything from hats and sweatshirts to slipper socks, car decals and stained glass floor lamps.
Nearby retail space, such as that formerly occupied by a gift shop across the hall, is currently empty, and one of Foley's biggest challenges is maintaining visibility for her store, which serves mostly tourists and consumers in their 30s and 40s, she said.
Foley believes a less confusing traffic system, possibly with two-way streets, could make the downtown retail options more appealing for would-be shoppers who are unfamiliar with the city's center. She would also like to see better signage on downtown parking garages.
Foley said the management of Lexington Center and Victorian Square have worked to find creative ways to promote their stores, but downtown is still a challenging place to set up shop.
"I personally don't know if there is any (one) answer for downtown," Foley said.
SUNG HAN, PARISIENNE
Before the renovation of Lexington Center, the downtown retail scene was looking bleak, said Sung Han, owner of Parisienne in Lexington Center. Han attributes it mostly to national trends, and the economic slump experienced by many retail businesses after September 11. Since then, however, her business has only been looking up.
Han's shop caters to many out-of-town customers, especially visitors who frequent Lexington on a regular basis for equine and sporting events. Han has been selling upscale women's clothing more than 20 years, and in that time, she has seen rapid growth for Lexington along with many shifting fashion trends. Women's attire has become more casual than it once was, Han said, and her shop has adjusted its collection to suit the trends.
Han has seen a growing anti-megamall contingent at Lexington Center — people who don't want to fight the crowds at large stores on the outskirts of town.
"Each store has their own loyal customers," Han said. "People are so busy, they don't want to mess around in the mall."
Han has also found new ways to extend customer service that keeps loyal clients coming back for more. For instance, for one out-of-town customer who couldn't make the trip to Lexington, Han shipped a package of multiple garments selected to suit the client's style. The customer returned what she didn't want, and Han charged her only for what she kept.
"That's why the small stores are surviving," Han said. "We're thinking of the relationship for a long, long time, and it works."
BETH EVANS, THE TOY SHOP
Beth Evans' Toy Shop spent ten years at Tates Creek Centre before she made the decision to move it back downtown, where it first began.
"Everything sounded like this was the happening place," Evans said. "So I wanted to come back."
Evans opened her Lexington Center store in 2003, as the center was undergoing major renovations. Evans estimates that now about 60 percent of her business comes from convention traffic. She has worked to carve out a niche of nostalgic toys and brands that bigger retail outlets don't carry, stocking her store with Breyer horses, Haba wooden toys, Mighty World play figures and Madame Alexander dolls. Evans said the Toy Shop also attracts clients from outlying counties, many of whom remember the experience of shopping at a small-town toy store that has since gone out of business.
The Toy Shop also reaps the benefits from traffic-driving events at the Lexington Opera House and Rupp Arena, Evans said. Even events at the Horse Park have been known to boost her business, as many tourists are willing to travel to the city's center to see what downtown has to offer.
While many are looking to the growth in downtown residential units to bring new customers, Evans has been taking note of the town-gown improvements to neighborhoods between UK's campus and downtown Lexington.
"The university's growth is going to definitely be to our benefit," Evans said.
GARY DODD, ORVIS — THE SPORTING TRADITION
After retiring from a long career in manufacturing, Gary Dodd launched his first foray into retail by purchasing Orvis - The Sporting Tradition in Lexington Center in August. Since taking over the store, Dodd has arranged an enterprise partnership to make his store Kentucky's exclusive Orvis dealer, and he plans to expand the concept to include locations in Louisville, northern Kentucky, Bowling Green and the Lake Barkley area within the next five years.
Dodd has also remodeled the store in recent months and added new product lines. Dodd is working to expand the inventory in his shop, which includes men's and women's fashions as well as fishing gear, luggage, pet supplies, and leather items. Next year, Dodd hopes to expand further with equestrian clothing offerings for men and children's outerwear.
"This is our first year, so we really don't know what to anticipate," Dodd said of the impending holiday shopping season. "We do know that retail sales (in general) are relatively soft."
Dodd's long-term outlook for his downtown business is positive.
"A lot of good things have happened here in downtown Lexington," Dodd said. "We have a lot of customers that tell us they just enjoy coming here."
KATHY DOUGHERTY, KATHY'S HALLMARK
Kathy Dougherty, owner of Kathy's Hallmark in the Lexington Center, is ready for the holidays.
"I have purchased well for the holiday season, and I've already seen it kick in," Dougherty said. "You hear the public complaining about Christmas coming too soon, but people are shopping for Christmas. They are shopping for gifts and decorations."
Dougherty won't decorate her store until Thanksgiving, but she has been putting product out this month, and she's planning giveaways and prize drawings as well. Her biggest sellers lately have included Painted Ponies, Willow Tree figurines and angels, and Sandicast dogs.
Business on the whole has been on the upswing for Dougherty, she said, now that the Lexington Center renovations are behind them.
It's really kicking in this year," Dougherty said. "Now all the conventions have been booked again, and we are seeing the results from the increase in traffic."
Dougherty has operated Kathy's Hallmark at the Lexington Center for 17 years, and she and her husband owned a shoe store, Dougherty's Fine Footwear, at the Center prior to that.
Location is an essential part of success for downtown retail, Dougherty said. "I think the biggest thing we have to overcome is the idea that it is hard to park here," she said. "It's so easy to park and get your ticket validated, but people don't realize that."