Rebuilding Neighborhood Retail

The decline of neighborhood retailing has had a profound effect on the desirability of many urban neighborhoods and communities throughout the U.S. The convenient availability of goods and services is a key factor that people consider when choosing a place to live, and neighborhoods without suitable retailing are dramatically weakened. The challenges of rebuilding persist not only in low-income neighborhoods, but also in many other urban locations where retailing never recovered from the shift of buying habits that happened during, and because of, the pandemic. As a result, many are forced to travel outside their neighborhoods to shop for goods and services that most others take for granted in their everyday lives. Thus, rebuilding neighborhood retail is a difficult, lengthy, and complicated process. It differs significantly from developing a suburban shopping center or reestablishing downtown shopping districts, so innovative strategies and tactics are needed to restore a neighborhood’s vitality and competitiveness.

“For our city and region to prosper, we need our Black and Latine communities to thrive,” said LaForce Baker, VP, Community Impact, World Business Chicago. “That means safe neighborhoods with access to services that many take for granted—grocery stores, parks, transit systems, restaurants, and more."

Retail can be a significant economic driver for communities, especially small and disenfranchised ones. It can improve quality of life, attract a workforce, and influence businesses to locate in the area.

• Job creation: Retail creates jobs, which can attract more primary jobs and a workforce.

• Business attraction: A thriving retail sector can attract businesses to locate in the community.

• Quality of life: Retail can enhance the quality of life in a community, which can encourage further growth.

• Community center: Retail can be the heart of a community and a place for people to gather.  

Members of the Community Impact Team at World Business Chicago recently attended the International Council of Shopping Centers (ICSC) conference, the nation’s largest gathering of retail decision-makers, to prospect, national retailers, to consider investments and business in historically disinvested areas on Chicago’s South and West sides. This effort is built on three key pillars:

1. Facilitating the development of commercial spaces from vacant lots and dilapidated buildings;

2. Attracting national retailers to areas they might otherwise overlook, and,

3. Helping existing Black and Brown businesses scale to meet community needs for amenities and jobs.

Attending the ICSC conference was crucial for advancing the second pillar: attracting national retailers. The conference provided an opportunity to establish new relationships and reaffirm existing ones with real estate heads of national retailers. It also allowed the World Business Chicago team to introduce these retailers to what they term “Critical Community Amenities”—businesses that residents of the South and West sides have been requesting to improve their quality of life. The team engaged with 31 national retailers, showcasing the market opportunities available on the South and West sides of the city.

Building on the momentum from this successful conference, World Business Chicago will partner with the Chicago Department of Planning and Development and the Chicago Mayor’s Office to host an in-person Bus Tour of key opportunity sites for expansion on the South and West sides later this year.

Previous World Business Chicago retail bus tours have yielded tangible results. For instance, two years ago, Culver’s Restaurant identified a site in the Austin/Humboldt Park area during the tour and completed construction in just 12 months—significantly faster than the typical 18-month development cycle. This new location now employs 75 people, generates millions in revenue, and has brought new life to a key corridor that had seen little development in nearly two decades.

If you would like more information:

• Leading this initiative is LaForce Baker, Vice President of Community Impact at World Business Chicago. A Southside native with a proven track record of success with national retailers, Baker brings both passion and expertise to the role, driving meaningful change in the community.