Small Town Retail Centers Attracting Big Brands

ATLANTA—As the economy improves in smaller towns around the Southeast, many major retailers are deciding to rejuvenate dated stores as a way to stay ahead of the competition. Atlanta-based Halpern Enterprises, which owns 33 retail properties in Georgia, South Carolina, and Florida, has seen this trend in a number of smaller metro areas. Two examples are Belk in Griffin, Ga. and Kroger in Carrollton, Ga. Both recently underwent major renovations.

These smaller towns are also attractive for redevelopment of vacant retail spaces as a way to attract new retailers. Case in point: Milledgeville, Ga. a Halpern-owned shopping center, recently attracted a Hobby Lobby by expanding and renovating a space previously occupied by Kroger.

GlobeSt.com caught up with Bill Brown, president of Halpern, to discuss about why retailers are looking beyond bigger cities to spend their renovation dollars. We also asked him why this is a move they expect to pay off. Be sure to return to the Southeast edition this afternoon for part two of this exclusive interview.

GlobeSt.com: Why are these smaller-town locations attractive to retailers?

Brown: Expanding into a smaller town can provide a retail chain with an increased chance to dominate the market. They're big fish in a small pond, so to speak.

More and more retailers are reinvesting in stores because it's more cost effective to renovate rather than starting from scratch. And they're finding a good bump in sales by doing so, from what we've seen in our centers.

GlobeSt.com: Is this just another function of the improving economy?

Brown: Yes, in some ways it is. The economy is improving both in cities and in smaller towns. For most of these retailers with stores in small towns, they've operated there for a long time and have been thriving, but they want to maintain their continued success. Doing a renovation also provides a retailer, such as Belk in the North Griffin Square shopping center in Griffin, the opportunity to enhance the look of the store, whether that is with a new coat of paint or new floor coverings.

GlobeSt.com: Are retailers also expanding into these small-town markets?

Brown: We have indeed seen more opportunities attracting new retailers to small towns. Hobby Lobby recently opened a location in Milledgeville at the Heritage Walk shopping center. The area was a good fit for the chain, bringing in business from Georgia College and State University, Lake Oconee, Lake Sinclair and the surrounding counties. The previous retailer in the space, Kroger, was successful but had to relocate due to a need for expansion.

Be sure to return to the Southeast edition this afternoon for part two of this exclusive interview.

GlobeSt.com: Are retailers also expanding into these small-town markets?

Brown: We have indeed seen more opportunities attracting new retailers to small towns. Hobby Lobby recently opened a location in Milledgeville at the Heritage Walk shopping center. The area was a good fit for the chain, bringing in business from Georgia College and State University, Lake Oconee, Lake Sinclair and the surrounding counties. The previous retailer in the space, Kroger, was successful but had to relocate due to a need for expansion.

Be sure to return to the Southeast edition this afternoon for part two of this exclusive interview.