The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Sunday, August 28, 1994                TAG: 9408260265
SECTION: SUFFOLK SUN              PAGE: 18   EDITION: FINAL 
SOURCE: BY CAROLE O'KEEFFE, CORRESPONDENT 
DATELINE: FRANKLIN                           LENGTH: Long  :  102 lines

STUDY: RETAIL SALES IN FRANKLIN SOARING THE REPORT ALSO REVEALS THERE'S ROOM FOR FURTHER GROWTH, ESPECIALLY IN APPAREL.

DURING THE PAST eight years, retail sales in Franklin have grown faster than anywhere else in the state, and faster than the state as a whole, according to a study prepared by the Hampton Roads Planning District Commission.

The study also discloses significant opportunities for further retail growth here, especially in apparel, or in a large discount department store.

Growth in retail trade also means growth in jobs in communities like Franklin, where employment declined in the 1980s when manufacturers invested in labor-saving machinery or moved to areas with lower operating costs.

While manufacturing captured 17 percent of the gross product in Franklin in 1980, the study reports that number was reduced to 15 percent 10 years later. Conversely, while retail trade was measured at 11 percent of the gross product in 1980, by 1990 it had increased to 14 percent.

The study offers several explanations for this retail growth.

The recent recession and defense down-sizing have been felt less in Franklin than in other Virginia communities.

``The recent recession was characterized by corporate down-sizing and restructuring, resulting in the layoff of disproportionately more white-collar than blue-collar workers,'' the study reports.

``Since Franklin does not have many large corporations and a high proportion of white-collar workers, these down-sizing effects on the city's employment were not as great as those in larger metropolitan areas.''

Similarly, since there are no military installations or defense contractors in the city, the effects of defense down-sizing have been small.

The retail growth also is seen as a result of the emphasis economic development officials have placed on recruitment.

The study serves as ``ammunition to bring further retail trade to Franklin and Southampton County,'' said James N. Bradshaw, executive director of economic development for the localities. ``The analysis and statistics will help us with recruitment.''

He said the study shows that while there is significant retail growth, there also is much money leaving the community, going to retailers nearby.

The city and county are actively seeking such retailers as men's and women's apparel, a card store, bakery, pet store, one-hour photo shop and an outlet for records, tapes and compact discs.

While the study shows a discount store such as a Wal-Mart or Kmart is needed in the area, attempts to get one of them have been futile.

``Kmart said we just don't have the population to justify it,'' Bradshaw said.

One of the main reasons shoppers give for leaving this market area is lower prices, the study says.

Franklin's downtown is a model for others and maintains nearly 100 percent occupancy of its store fronts.

``Revitalization efforts began about a decade ago through the Virginia Main Street program,'' Downtown Development Director Nanci Drake said. ``That was critical, and I feel if that wasn't done, we would be like most downtowns you see. Their window displays are plywood. But it has been a continual effort. It's important to the city.

``The excitement, the mix of service and retail businesses entices others to come,'' she said.

Among recent projects is the installation before Christmas of historical street lamps along Main Street.

Two businesses recently relocated downtown in spaces occupied by Standard Drug until late last year.

Needles and Pins, a custom sewing, fabric and notions store, has moved from Southampton Shopping Center. Next to New, a thrift shop in too-small space downtown, is moving into the other side of the former drug store.

Other plans include building a park between Main Street and the Blackwater River.

Retail sales since 1986, using the number 100 as a base measure, rose to 150 for Franklin compared to 131 for the state and 130 for other small independent Virginia cities.

The Planning District study shows that Franklin not only outperformed the state as a whole and 22 other sample Virginia cities in retail growth but also in the numbers of new stores.

Again using 100 as a base measure, other cities grew to 103, Virginia to 105 - and Franklin to 114.

Franklin also outperformed the state average in sales per store. In Franklin, this measure increased by nearly 5 percent since 1986, the study indicated, while per-store sales for the state as a whole decreased by 4 percent.

One purpose of the study was to identify retail opportunities for the city. It concluded that Franklin is underselling by more than $12.5 million annually, meaning Franklin residents are spending that much away from the city.

``This under-selling estimate indicates that there are significant opportunities for further retail growth should Franklin merchants be successful at increasing their market penetration,'' the study says.

Opportunities for retail growth were found in seven of 19 retail categories. For example, most shoppers are shown to be leaving the Franklin market area to buy clothing, groceries from non-chains, prepared foods from restaurants, drugs, books and paper products, jewelry, luggage and sports equipment. ILLUSTRATION: Staff photo by JOHN H. SHEALLY II

This crowded parking lot in the Southampton Shopping Center in

Franklin is evidence of the growth in retail business.

by CNB