Malibu Shoppers’ Spending Habits Spotlighted in Study

• Survey Suggests Residents Are Not Happy with the Current Retail Mix in the Community

BY BILL KOENEKER

An economic study recently completed by a consulting firm for the City of Malibu that was designed to measure shoppers’ preferences has concluded that given the current zoning requirements, high rents, land prices and land availability, Malibu’s ability to satisfy its community-serving retail demand is limited.

One of the options offered by the consultants to remedy the perceived situation would be for municipal planners to offer incentives to developers.

Builders would be allowed higher densities if they would allocate a portion of new space to below-market commercial renters in order to achieve the mix of community-serving needs that are currently priced out at existing market-rate retail costs.

The study also draws other conclusions from the household shopper survey that was carried out this year.

“The results of the survey suggest that residents are unhappy with Malibu’s current mix of retail shopping opportunities. They were especially concerned that existing retailers cater primarily to visitors and very high income households,” the report states. “Residents would like to see a hardware/home improvement store, a general merchandise store selling household goods and a specialty food store.”

The study indicates that Malibu households spend $276 million annually on retail purchases. Of that amount, $86 million is spent at business establishments located in Malibu and another $189 million is spent in establishmenta outside the community. “This sales leakage could support an additional 618,000 square feet of retail space in Malibu,” the study goes on to state.

Local retail businesses generate about $234 million annually. About $87 million comes from local households and the remaining $147 million comes from shoppers from surrounding communities, tourists and stayover visitors.

The study also talked about the need for more office space. There are 1479 businesses located in Malibu, of which 900 are located at a residential address, according to the study. The total businesses together generate about $1.2 billion in sales. Of the 900, there are 510 business and personal services, 139 are industrial, mostly construction, another 170 are retail businesses, and 81 are miscellaneous, according to the report.

“The high rents, low vacancy rates (less than five percent) and the very high number of home-based businesses suggest a very strong demand for office space in Malibu,” the study suggests.

The shopper survey generated 1002 responses; the most often requested store types were hardware/home improvement store (626 mentions), specialty grocery store (731 mentions), household goods store (147 mentions) and new restaurants (187 mentions).

The three major categories of retail spending by locals were department/discount stores where Malibuites shelled out about $28 million, new car dealers where locals spent about $63 million and grocery stores where residents plucked down about $42 million. The report indicates that other retail store categories with more than $20 million of annual spending by local households include specialty retail, gasoline service stations, apparel/clothing and eating places.

The city council is expected to consider the completed study that is described by staff as building upon the 2000 economic plan. Last year the council determined the scope of the study and decided its consultant Applied Development Economics, Inc. should proceed with the survey.

The matter is currently before the council in order for members to discuss the results and provide further direction to the planning staff about whether to implement an Economic Element to the General Plan, according to a staff report.