Retail programs are growing fast — but are they built to last?
📝 Mind the Gap: A Word of Caution to Community Benefit Districts and Business Improvement Districts With New and Expanding Retail Activation Programs
I’ve just returned from the West Coast Urban District Form in San Francisco, presented by the California Downtown Associate and the International Downtown Association, and co-hosted by The East Cut Community Benefit District and The Downtown SF Partnership.
With each IDA conference I attend, I deepen my understanding of place management — a cross-functional field led by local governments, nonprofits, and consulting firms working to make downtowns more vibrant.
📝 Mind the Gap: A Word of Caution to Community Benefit Districts and Business Improvement Districts With New and Expanding Retail Activation Programs
I’ve just returned from the West Coast Urban District Form in San Francisco, presented by the California Downtown Associate and the International Downtown Association, and co-hosted by The East Cut Community Benefit District and The Downtown SF Partnership.
With each IDA conference I attend, I deepen my understanding of place management — a cross-functional field led by local governments, nonprofits, and consulting firms working to make downtowns more vibrant.
In 2024, I was invited to present on a panel sharing the Economic Benefits of Implementing Arts and Culturally Informed Activations. For this recent conference, I wanted to propose a session on retail technical assistance and teamed up with a colleague from a place management consulting firm, a retail activation program manager, and the CEO of a downtown association. Together, we presented Innovations in Technical Assistance for Modern Retail Revitalization.
It’s taken three conferences for me to fully grasp my role in this ecosystem, beyond the invitations I’ve received to contribute to Seattle Restored. Since 2021, I’ve contributed to the launch of this retail activation pop-up program, providing a technical assistance toolkit that has reached 125 program participants to date. I’ve also supported the opening of a co-retailing model in a 26,000 sq. ft. space as well as the program expansion supporting retailers in long-term leases. Each engagement, I directly supported retailers at different stages of growth. Yet, this represents just a small fraction of the 4,000+ retailers I’ve helped throughout my career.
With 28 years of experience and a deep curiosity about what works (and what doesn’t), I took copious notes last week — notes that led me to this word of caution.
What’s ahead for retail activation programs
Before I dive in, I want to acknowledge the fantastic work being done by Community Benefit Districts (CBDs) and Business Improvement Districts (BIDs) to revitalize their downtowns. This work is essential and truly inspiring.
I spent an afternoon touring MOMENT retail activations in Downtown San José, meeting creative business owners who are shaping their city’s future. It was a goosebump-inducing and wallet-opening experience, and left me eager to see more.
Props to all of the place management teams making magic happen!
That said, the road ahead isn’t without challenges. My goal is to highlight the most pressing concerns and explore them further in upcoming content.
If you know someone working in retail activation, please share this with them because there’s a lot we can learn from each other!
It’s taken three conferences for me to fully grasp my role in this ecosystem, beyond the invitations I’ve received to contribute to Seattle Restored. Since 2021, I’ve contributed to the launch of this retail activation pop-up program, providing a technical assistance toolkit that has reached 125 program participants to date. I’ve also supported the opening of a co-retailing model in a 26,000 sq. ft. space as well as the program expansion supporting retailers in long-term leases. Each engagement, I directly supported retailers at different stages of growth. Yet, this represents just a small fraction of the 4,000+ retailers I’ve helped throughout my career.
With 28 years of experience and a deep curiosity about what works (and what doesn’t), I took copious notes last week — notes that led me to this word of caution.
What’s ahead for retail activation programs
Before I dive in, I want to acknowledge the fantastic work being done by Community Benefit Districts (CBDs) and Business Improvement Districts (BIDs) to revitalize their downtowns. This work is essential and truly inspiring.
I spent an afternoon touring MOMENT retail activations in Downtown San José, meeting creative business owners who are shaping their city’s future. It was a goosebump-inducing and wallet-opening experience, and left me eager to see more.
Props to all of the place management teams making magic happen!
That said, the road ahead isn’t without challenges. My goal is to highlight the most pressing concerns and explore them further in upcoming content.
If you know someone working in retail activation, please share this with them because there’s a lot we can learn from each other!
🧭 Four Pillars of Merchant Method: Learn the retail business pillars
📚 Merchant Skills: Build retail programs that last
✏️ Your Assignment: Ask questions to transform your retail program
📌 Bulletin Board: Guide upcoming free resources
🧭 FOUR PILLARS OF MERCHANT METHOD™
The universal business pillars for retail success
Retail businesses rely on four essential pillars to achieve long-term success: product, process, people, and profit.
Mastering these areas isn’t optional. It’s essential for any retail business that aims to be viable, self-reliant, and built for perennial success.
New to the Merchant Method? Need a refresher? Get oriented.
📚 MERCHANT SKILLS
The Dunning-Kruger Effect at play
Entrepreneurs are known for taking on big challenges with creative vision and an optimistic spirit. But sometimes, we don’t know what we don’t know — until hindsight kicks in.
A shared challenge for CBD and BID retail activation programs? Securing spaces. Many organizations underestimated the complexity of lease negotiations, a skill outside their core expertise. The solution? Hire experts and cover legal fees.
Even I don’t handle my own lease negotiations. That’s a specialized field. The stories I’ve heard from people struggling with commercial leases are staggering. And the ones with cooperative property owners? Few and far between.
But here’s what I can forecast: the challenges that retail activation programs will face in years two, three, four, and beyond.
Breaking the doom loop (and avoiding the retail zombie effect)
At the San Francisco conference, one recurring theme was the Doom Loop — a self-reinforcing downward spiral where one negative event leads to another.
In San Francisco, place management teams have worked hard to reverse the cycle with night markets, street dance parties, park transformations, retail activations, and more. It’s incredible to see local governments, nonprofits, and businesses come together to reclaim their downtowns.
But there’s another cycle no one is talking about yet: Retail Zombies.
A Retail Zombie is a business that can’t cover its expenses and relies on external funding or debt to stay open. Basically, it can keep its doors open month-to-month but isn’t generating enough revenue to grow, invest, or sustain itself long-term.
Like Jerry Maguire’s famous memo, The Things We Think and Do Not Say, I’m going to say what needs to be said: Retail activation programs, as many are currently structured, will create Retail Zombies.
That’s why technical assistance needs to evolve. Ribbon-cuttings aren’t the finish line.
I may not have every answer, but I do know the most common challenges that underperforming inventory-based businesses face. And the technical assistance that will help activation programs incubate, accelerate, and graduate their retail participants.
📚 MERCHANT SKILLS
The Dunning-Kruger Effect at play
Entrepreneurs are known for taking on big challenges with creative vision and an optimistic spirit. But sometimes, we don’t know what we don’t know — until hindsight kicks in.
A shared challenge for CBD and BID retail activation programs? Securing spaces. Many organizations underestimated the complexity of lease negotiations, a skill outside their core expertise. The solution? Hire experts and cover legal fees.
Even I don’t handle my own lease negotiations. That’s a specialized field. The stories I’ve heard from people struggling with commercial leases are staggering. And the ones with cooperative property owners? Few and far between.
But here’s what I can forecast: the challenges that retail activation programs will face in years two, three, four, and beyond.
Breaking the doom loop (and avoiding the retail zombie effect)
At the San Francisco conference, one recurring theme was the Doom Loop — a self-reinforcing downward spiral where one negative event leads to another.
In San Francisco, place management teams have worked hard to reverse the cycle with night markets, street dance parties, park transformations, retail activations, and more. It’s incredible to see local governments, nonprofits, and businesses come together to reclaim their downtowns.
But there’s another cycle no one is talking about yet: Retail Zombies.
A Retail Zombie is a business that can’t cover its expenses and relies on external funding or debt to stay open. Basically, it can keep its doors open month-to-month but isn’t generating enough revenue to grow, invest, or sustain itself long-term.
Like Jerry Maguire’s famous memo, The Things We Think and Do Not Say, I’m going to say what needs to be said: Retail activation programs, as many are currently structured, will create Retail Zombies.
That’s why technical assistance needs to evolve. Ribbon-cuttings aren’t the finish line.
I may not have every answer, but I do know the most common challenges that underperforming inventory-based businesses face. And the technical assistance that will help activation programs incubate, accelerate, and graduate their retail participants.
✍ YOUR ASSIGNMENT
Questions for reflection
Take time to reflect on these three critical questions, either on your own or with your cross-functional team. If you’re leading a discussion, schedule one 60-minute session per topic:
#1 Prepare Participants for Market-Readiness
There are many ways to structure retail activation programs.
How can you create access with rent subsidies or budget relief while also helping participants prepare for market-rate leases once they graduate?
# 2 Co-Retailing is a Learned Skill
Co-retailing solves different problems — whether it’s splitting a space, working within an unconventional layout, or making room for more participants.
How are you training entrepreneurs (many of whom have never worked B2B) to collaborate successfully without requiring constant intervention from program managers?
#3 Skills That Lead to Retail Profit
Getting retailers through ribbon-cutting is one thing but what about long-term success?
Are program managers equipped to support businesses with:
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Note: Marketing alone won’t solve these problems. Neither will accounting or high-level financial planning.
A strong retail operations foundation is critical.
A strong retail operations foundation is critical.
📌 BULLETIN BOARD
Retail support resources
I’ll be refreshing core lessons and re-recording free training videos on the blog, including the Four Pillars of Merchant Method, Retail Cashflow 101, and Understanding the Retail Revenue Journey.
I’d love to hear from you! What questions do you have about operating a profitable retail business or supporting retailers? Comment below and let me know.
