1. Downtown Shopper Preference & Business Needs Assessment Survey Results August 2009

2. Background  Survey of Business Owners & Downtown Shoppers  Online & Telephone surveys conducted March-April 2009  Profile of respondents:  58 Business Owners – 19 retailers/services, 19 restaurants, 20 other businesses  815 Shoppers (residents, students, office workers, etc.) Survey Background

3. ▪ Business Owners – understand their perspective on the advantages and disadvantages of a Downtown location, critical factors for success and key trends influencing business operations ▪ Shoppers – determine shopping habits and preferences and perceptions about Downtown ▪ Align key findings from both surveys to better focus retail recruitment and retention efforts and business assistance programs Survey Goals

4. Business Owner Survey Results How long have you been operating this business in Downtown San Jose? (54 respondents)

5. Business Owner Survey Results Name up to 3 advantages or strengths you associate with doing business in Downtown San Jose. (46 respondents)

6. Business Owner Survey Results How satisfied are you with the following aspects of your space? (56 respondents)

7. Business Owner Survey Results How would you characterize your current business’ activity level? (55 respondents)

8. Business Owner Survey Results Which description below best characterizes your plans to expand or reduce your operation in the next 18 months? (56 respondents)

9. Business Owner Survey Results Please check below if your business currently has a marketing plan, business plan, or line of credit. (49 respondents) ▪ Eighty percent (80%) of respondents have a marketing plan. ▪ Seventy-eight percent (78%) of respondents have a business plan. ▪ Fifty-seven percent (57%) of respondents have a line of credit.

10. Business Owner Survey Results Please check any type of investment or improvement you plan on making in one-to-two years. (56 respondents)

11. Business Owner Survey Results What is the primary market area from which the majority of your sales are derived? (56 respondents)

12. Business Owner Survey Results To what extent do the following Downtown activities and developments have a positive impact on your business in terms of foot traffic, customer sales, image and overall well being? (55 respondents)

13. Business Owner Survey Results In addition to a strong economy, what are the critical factors for the success and expansion of your business? (54 respondents)

14. Business Owner Survey Results What are some of the major issues or obstacles facing your business today? (57 respondents)

15. Business Owner Survey Results “City/County/State code or regulations," please explain the issues or obstacles. (27 respondents) “Not being able to furnish live music without a permit. Also, parking meters and aggressive enforcement tactics discourage customers.” “It is virtually impossible to obtain the correct answer or process for anything you need to do when dealing with the city. Left hand does not know what the right hand is doing when it comes to city employees. No streamlined processes, extremely hard to open a business or to renew permits because no one in city hall has correct answers, especially the counter employees.” “The validated parking program is a bit cumbersome. We tend to run out of validations by the end of the month, even though we have increased the amount we purchase. Also, it’s unclear if guests are charged a flat rate of $3.00 after 6:00 even though they have validation stickers.” “Parking enforcement is scaring customers away. They may collect $8 million a year, but they are scaring away $250 million a year to shop elsewhere.”

16. Business Owner Survey Results To keep your business healthy and competitive, which of the following types of information or assistance are important? (46 respondents)

17. Business Owner Survey Results For the programs and services listed below, please let us know your familiarity with them and, if you have used them, please rate your level of satisfaction. (47 respondents)

18. Business Owner Survey Results What is the best way for you to receive information about and to access City programs? (44 respondents) ▪ Most respondents indicated that e-mail would be the best way to notify them about City programs (73%). The next most popular method is a personal business visit (39%). ▪ Thirty percent (30%) of respondents would like to receive information by U.S. mail. ▪ Events, workshops, and seminars are the least favorite notification methods (14%).

19. Business Owner Survey Results What identity or image would you like to see Downtown San Jose develop for itself as a unique shopping district attractive to residents, employees and visitors? (38 respondents)  “There needs to be a master plan that dictates where businesses can locate, not a disparate plan that lets each landlord decide what goes into their space. For example, Popeye's next to the bus stop does not encourage anyone to shop on that block -- do you think the Gap would want to open on that block? The city needs to focus on three or four main streets and work collectively to make them a showcase and to tie them together, both in terms of what they offer and for easy accessibility.”  “Folks need a central place to shop - pure and simple. Shoes stores, clothing stores, all in one convenient location with plenty of free parking. Why go Downtown and risk getting a parking ticket, be forced to pay for parking, or fail to find parking when you can go to Valley Fair or Santana Row and park care-free and shop to your heart's delight? No one comes Downtown to shop - they come for special events. Downtown San Jose is not a Downtown - it is a special events zone.”  “Stress the "green" livability of working, living, shopping, recreating without having to go to a mall. Stress a "real" urban experience, as opposed to the Disneyland meets Rodeo Drive fakery of Santana Row, while taking a lesson from their pro-pedestrian streets with nice places to sit and talk, and their nightmarish parking situation. Create a homegrown business environment in keeping with the green esthetic: shop local. Maybe provide bikes that can be borrowed to ride between SJSU and the new San Pedro Market area or other areas Downtown to avoid driving/parking issues. Integrate the First Fridays with shopping options to create an alternative place that's creative and happening.”

20. Business Owner Survey Results How would you rate your overall confidence in the economic future or vitality of Downtown San Jose as a whole? (48 respondents) ▪ Half of respondents (50%) indicated that they were moderately confident in the economic future or vitality of Downtown San Jose. ▪ Seventeen percent (17%) expressed a high level of confidence while 27% expressed low confidence.

21. Business Owner Survey Results What types of businesses (products and/or services) do you think should be recruited to Downtown San Jose to improve its attractiveness as a shopping and business district? (40 respondents) ▪ Thirty-three respondents (83%) indicated that additional retail stores are needed in the Downtown. Suggestions include clothing stores, groceries, book stores, and large anchor tenants. ▪ “Reputable clothing retailers, shoe stores, grocery stores, health food stores, furniture stores, appliance stores, genuine New York-style deli, BART, etc. We need a shopping district Downtown.” ▪ “Unique stores, let owners be creative and get rid of restrictions on signs.” ▪ “National clothing retailers (i.e. Gap, Old Navy), national restaurant chains (i.e. California Pizza Kitchen), family-oriented businesses/establishments. These types of well-known businesses will attract more people and show that there is confidence in Downtown as a business and retail destination.” ▪ “Encourage the arts - performance, music, & cultural. Fill in the empty spaces! Create and foster an entrepreneurial spirit in Downtown.”

22. Shopper Preference Survey Results Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? (813 respondents)

23. Shopper Preference Survey Results What are the primary reasons for shopping where you do? (814 respondents)

24. Shopper Preference Survey Results What types of SPECIALTY MERCHANDISE do you think are needed and would you patronize in Downtown San Jose if they existed? (700 respondents)

25. Shopper Preference Survey Results What kinds of HOUSEHOLD FURNISHINGS are needed and would you patronize in Downtown San Jose if they existed? (589 respondents)

26. Shopper Preference Survey Results What kinds of APPAREL stores are needed and would you patronize in Downtown San Jose if they existed? (663 respondents)

27. Shopper Preference Survey Results What kinds of CONVENIENCE MERCHANDISE do you think are needed and would you patronize in Downtown San Jose if they existed? (672 respondents)

28. Shopper Preference Survey Results Some of the above merchandise may be available in Downtown. Please explain why you may not be buying these products in Downtown if you are aware of them. (444 respondents) “Not enough selection at current stores. For example, I'd prefer to browse at 3-4 shoe stores before making a purchase.” “The stores are scattered and since parking is not convenient it would have to have many different stores that I would like to visit in order for it to be worth while to find parking.” “Because you can get many of these items for cheaper at larger retail stores.” “Parking is inconvenient.” “I like doing all my shopping at once. So while there may be some of those stores Downtown, they’re usually too far apart or just not enough of them to get all my shopping done.” “Parking; don't want to pay $10 parking for an early movie and inexpensive dinner; would be less inclined to pay that for any shopping.” “Specialty stores are expensive, outdated, uninviting.”

29. Shopper Preference Survey Results What kinds of LEISURE/ENTERTAINMENT services are needed and would you patronize in Downtown San Jose if they existed? (632 respondents)

30. Shopper Preference Survey Results What kinds of GENERAL SERVICES are needed and would you patronize in Downtown San Jose if they existed? (384 respondents)

31. Shopper Preference Survey Results What kinds of PERSONAL SERVICES are needed and would you patronize in Downtown San Jose if they existed? (451 respondents)

32. Shopper Preference Survey Results In your opinion, what types of RESTAURANTS AND EATING PLACES are needed in Downtown San Jose and would you patronize if they existed? (645 respondents)

33. Shopper Preference Survey Results What HEALTH SERVICES do you think are needed and would you patronize in Downtown San Jose if they existed? (402 respondents)

34. Shopper Preference Survey Results Currently, what are the major ADVANTAGES of shopping or doing personal errands in Downtown? (611 respondents)

35. Shopper Preference Survey Results Currently, what are the major DISADVANTAGES of shopping or doing personal errands in Downtown? (663 respondents)

36. Shopper Preference Survey Results What can Downtown merchants do to improve their stores? (626 respondents)

37. Shopper Preference Survey Results What are the best times for you to shop during the work week? (672 respondents) ▪ The majority (73%) prefer shopping after 5:00 pm on the weekdays. ▪ The rest of the respondents (27%) choose to shop between 8:30 am - 5:00 pm.

38. ▪ Conduct business retention visits on a consistent schedule and assign businesses an “account manager” (staff) as a primary contact ▪ Implement pro-active outreach to educate businesses about the Downtown Parking Program and other business assistance programs ▪ Continue the “restaurant boot camp” series to include customer service and marketing training Next Steps