Where O Where Do I Open
a New Consignment Store in Vancouver?
Methodology
This
project was chosen because it conformed to the "four aspects of a good
spatial problem to choose" outlined at the beginning of class: I)
it is a problem that concerns me because it concerns a market
that I actively participate in; II) it requires data that can be
readily acquired; III) it allows for the asking of discrete questions,
which
have been based on the data I collected; and IV) it is of a manageable
size.
To begin, I asked my question:
"Where should I open a new
consignment store based on a collection of criteria?"
To develop my criteria I
conducted interviews at existing consignment stores to see what aspects
of their location the owners and workers felt played a significant role
in their success. I visited stores on Main street and in Gastown,
because these are the areas I shop in. To be completely honest,
these are also the only areas I knew these stores existed.
Following are the criteria I came up with from the interviews, along
with the basic reasoning behind them.
- Nearness to
other stores - This criteria got partially
mixed responses. One proprietor felt that competition would be
detrimental to a new store, as large well-established stores like Front
& Co. would control your supply and squeeze you out of the market
(yes, this even happens with second hand clothes!). The other
stores I talked to disagreed with this (one of which was two stores
away from Front & Co.), saying that nearness to other stores
increased the foot traffic to their stores. The idea of increased
foot traffic has two sides, as well. In one way it increases the
amount of people walking in and out of your store each day. On
the other hand, most of these people are browsers and will tend to look
through every store before deciding to purchase one item....is it in
your store? Nearness to other stores also brings the worry of
increased gentrification. Main street is the new consignment area
(formerly it was west 4th, who knew), and this growth is concomitant
with the gentrification running rampant in the area. This means
higher lease prices for a starting store. And if you try to get
in on the ground floor of the next 'up-and-coming-trendy' neighbourhood
you have to think about building good relationships with your landlord
to avoid hefty lease increases. Although these are all good
points, I still felt that nearness to other consignment stores would be
a positive thing. Three stores I interviewed said that relationships
were formed between stores, where they would pass on consignments and
recommend each other. This, they said, is due to each store
carrying a slightly different range of selection. From personal
experience I felt that nearness was a good thing. Although I'm a
browser, I still do buy. But I've never bought anything from a
consignment store that isn't near any others, because I've never been
to one. I don't know where they are. I did however, take the
competition of other stores into account during my spatial
analysis. I used one Weighted Linear Combination (WLC) that rated
areas with more stores as more suitable, and one that rated areas with
3 to 6 stores as suitable and areas with <3 or >6 as unsuitable.
Where are the Existing
Stores
- Customer
Demographic
- The demographic is
hard to define, because it is quite broad. Most stores said their
customers were between 15 and 35, although they had some people over
40. Education level is also variable, as is income.
Consignment shoppers do so because they enjoy the funkyness of the
style, or because they like reusing clothes and reducing waste, or
because they like saving money, or a combination of these and possible
others. At any rate the only real section of the population I could
narrow down was age and sex. I know from personal
experience that women shop more than men, consignment stores carry more
women's clothes, women sell their clothes more, and that women and men
between 15 and 35 shop more than people 35+. This was confirmed through
interviews. So I imported census data from the SIS drive and
calculated the ratio of females to males that are 15-34 for each DA in
Vancouver. DAs with a ratio of 1 and greater have more women,
those with ratios less than 1 have more men. See the Distribution.
- Affordable Rent - Rent is of course
important. Even if all my data pointed to opening a store along
English Bay common sense would tell me this would not be
feasible. So I looked up the Royal LePage website and found the
price/square foot for commercial spaces currently for rent in
Vancouver. From this I created an interpolated cost surface for Vancouver using
Inverse Distance Weighting. I then overlayed this
with a Boolean image of the Commercial and Commercial/Mixed Residential
areas in Vancouver from the Vancouver landuse shapefile on the SIS
drive. This gave me a lease cost surface for the commercial areas in
Vancouver, allowing me to further refine my search. Now in
deciding on what an appropriate rent is I'm a little lost, but feel a
middle-of-the-road tactic will suffice. As long as I'm not paying
at the highest end ($70/sqft), but closer to the mean ($25/sqft), I
should be okay. See the Interpolated Image.
- Transportation - At first I thought this would be
an important aspect of location. But after talking to store
owners I no longer feel it's important enough to include in the
analysis. As one owner put it "if there's no other reason for someone
to come to your area besides your store, who cares if it's easy to get
to on the bus. They won't come". This brings us back to nearness
of other stores.
It's more important to be in a good neighbourhood than to be accessible
by public transit. The commercial areas in Vancouver are also all
fairly well reached by public transit.
- Safety
- I had not thought of this as an
issue to begin with, but one store owner expressed it as a reason she
would not operate out of Gastown. At the same time though, she said
that her front window had been broken a couple times (on Main street)
and that theft was a bit of a problem. Then talking to a girl
working in Gastown she said that theft was a problem anywhere she had
worked, and although it was a bit worse in Gastown it wasn't bad enough
to make her think opening a business there would be a bad idea.
So although I've still chosen not to include it in my analysis I wanted
to include it in my methodology because it is an aspect to this
decision. Different people will feel differently about certain areas of
the city, and this could then be an important component.
Hypothesis: Going into this project I am expecting
that Gastown will be my most suitable location. I know from
experience that it is near the type of stores I'd like to be by.
I also feel that more affordable commercial property is available
there. Although there are many consignment stores on the west
side (along W 4th and W Broadway), I am not expecting to be able to
afford to open a business there. The Main Street area will be
interesting to see, because of the gentrification. I would think
the rents would be too high, but it is still on the east side, and
therefore possibly still affordable.