Local Economy Bouncing Back

Author: Alyssa Thurston

If you were a small town, what would you do if your biggest business closed its doors?

That's the question the town of Middlebury has had to answer following last year's closure of the Ames general merchandise store - a significant business presence in the area.

To determine the impact of the closure on the local economy and come up with methods of encouraging overall economic revitalization, the town conducted a survey about downtown Middlebury's economy. The "Downtown Market Study and Strategic Marketing Plan," the first of its type and scale in at least 10 years, was conducted by the New Hampshire economic, planning and real estate consultant firm RKG Associates, Inc.

As stated in a June report presentation, the study analyzed the types of businesses that exist in downtown Middlebury and their overall contributions to the area's economy, as well as potential for growth in the downtown business area.

It also surveyed a randomly selected group of consumers who patronize these businesses, from Addison Country residents to Middlebury College students and out-of-town visitors. The survey then analyzed their individual purchasing habits, preferences and desires as related to downtown business activity.

The study used the results from these surveys to look at potential solutions for increasing retail activity in Middlebury, with an eye towards coming up with solutions to nourish and promote downtown business.

The closure of Ames has had a significant impact on downtown economic activity and was thus the main focus of the study. Survey respondents had shopped at Ames on average at least three times a month, with 20 percent of those respondents also frequently visiting the downtown area on the same trips. Of the respondents who expressed an opinion about whether or not the closing of Ames would reduce their trips to downtown, 30 percent said that it would.

From these numbers and other statistical data related to consumer activity in downtown Middlebury, the study concluded that the closure of Ames would significantly "reduce resident purchases of clothing, housewares and other department store-type items in Middlebury," as well as decrease overall business in the downtown area.

According to the study, a number of factors have contributed to a relatively slow-paced downtown economy. One has been significant competition with businesses outside Middlebury and even outside Addison County. For instance, 33 percent of survey respondents indicated that they would prefer to travel to nearby Chittenden County to shop for such goods as books, housewares, groceries and clothing, rather than purchase these types of items in Middlebury. Since Ames' closing, profits lost to such outside competition are estimated between $75 and $86 million.

Furthermore, a perceived general problem with traffic congestion and lack of available parking downtown has driven more residents outside Middlebury to shop.

When asked what types of stores and services were most preferred for the downtown area, residents indicated that they would desire more major clothing, department store and discount store options. They also showed significant support for the presence of another supermarket or grocery store in the area.

College students, for their part, also strongly supported more options for purchasing clothing in the area, as well as more venues for purchasing entertainment-oriented items such as books and music.

Based on the results of the survey, the study made several recommendations to help draw profits back to the downtown Middlebury area.

One suggestion was to consider more development in areas such as the currently unused lots behind Ilsley Public Library and the Municipal Building. Traffic improvements downtown were also recommended.

First and foremost, however, the survey emphasized that the currently near-vacant Ames Plaza must be developed and expanded. Furthermore, a major department store-type business must be recruited to fill the void created by Ames' closure. These were cited as the two most important methods to most effectively maintain a competitive edge for downtown businesses, since they would provide more options in the area for local consumers and increase downtown retail sales in Middlebury.

The study concluded that there is enough economic necessity and local demand for such vast development endeavors. This type of major development would provide for more shopping options in Middlebury that, in turn, would bolster the downtown economy by helping to prevent retail sales "leakage" outside Middlebury.

Since the report's issuance, the town has been actively taking steps in response to the survey's suggestions for development and improvement. According to Jamie Stewart, executive director of the Addison County Economic Development Corporation, plans to renovate the Ames Plaza are already underway, with "a significant facelift and restructuring of the Ames plaza property" slated to take place sometime next year.

As for attracting a new anchor business to Middlebury, a Hannaford grocery store is already lined up to fill the space vacated by Ames. Existing plans also include developing spaces for several other stores to accompany the Hannaford store in the soon-to-be renovated plaza.

Stewart further noted that the town has taken significant steps "to make downtown more appealing." Projects have included major streetscaping and focusing on more prominent marketing and promotional activity, in order to draw more consumers downtown.

When life hands you lemons, as the saying goes, you make lemonade. In the case of Middlebury, when one economic center closes down, you build a bigger and better one. Though the closing of Ames might have had hints of a doomsday herald to some, the town of Middlebury is making concerted efforts in response to the economic study of the downtown area to reinvigorate the local economy. If all goes well, the planned changes, as well as those already underway, promise to add even more vitality to this small Vermont town.