Military Big Spenders for Retailers

The Washington Retail Association, in today's online edition of Washington Information Network, reports the state is swelling with military personnel who offer retailers a significant customer base.

With 18,000 Army troops returning home this year, the military population at Joint Base Lewis-McChord has grown 45% in the past five years, from 31,000 to 45,000, the Retail Association attributed to Ken Swarner, publisher of The Fort Lewis Ranger newspaper and other publications.

They say Swarner points to Washington's Office of Financial Management statistics to show why retailers should consider military customers in their marketing plans:

• Military payroll in the South Sound region is $1.8 billion a year. Those funds go to military bank accounts eligible for spending with retailers.
• Pierce County has the nation's second largest concentration of military retirees, many working second jobs, who collect about $525 million a year in annual pension checks.
• Military personnel at Joint Base Lewis-McChord account for 20% of Pierce County payrolls.
• Lewis-McChord accounts for 14% of Pierce County's employment. In smaller counties, it accounts for far more: 68%in Island County, home of Whidbey Island Naval Air Station and 36% of Kitsap County, home to the Bremerton Naval Station and Bangor Sub Base.
• Of the 75% of Lewis-McChord families who live off base, 40% reside in Thurston County.

The Retail Associations says Swarner offers a simple message to retailers struggling to survive the recession; remember the presence of military members in your midst and the difference they can make in improving business.

Reaching out to this market takes using all available means to tell active and Reserve military, veterans and retirees that you appreciate them, he said. You'd be amazed at how a poster in your window or a message on your reader board stating that you support the military can increase your connection with this important group of potential customers. Offer discounts, connect on Facebook, do whatever it takes.

Freedom Crossing Lifestyles Center

In what would be one of the larger commercial construction projects in Pierce County - especially during this prolonged Great Recession, the Army & Air Force Exchange Service (AAFES), proposes to build a new/replacement commercial/retail center on Joint Base Lewis-McChord (JBLM).

Today, Joe Giuffreda, VP, Community Development Initiative, AAFES and Col. Tom Brittain, JBLM Garrison Commander, presented an overview of the project to the Chamber's Board of Directors. This briefing is an update of an earlier presentation to the Chamber's Military Affairs Committee some months ago.

Things have certainly progressed!

AAFES is looking at a market of 129,131 persons from JBLM military and families, civilians and retirees, primarily focused in its daytime, captive (on-base) population. The scope encompasses some 474,000 square feet allocted 58% AAFES, 36% 3rd party (local business and franchises) and 6% Garrison office space. Costs may be as high as $100 million from its corporate, not taxpayer, sources. (AAFES profits fund family services on JBLM.)

AAFES estimates between 850 and 1,000 jobs for construction, support services and stores operations. They also are planning for new business opportunities with new corporate stores, national and regional franchies and independent local businesses. Now, the private-sector businesses on base collect and pay to (unincorporated) Pierce County about $450,000 annually in sales tax revenue. That is projected to increase to several million dollars upon completion of the new lifestyles center.

AAFES will seek approval by its Board this August, with construction starting Fall 2011 and its completion in Summer 2013.

The Chamber Board referred a question of Chamber support to its Executive Committee. If you wish to know more about the project, or provide input into the decision-process of the Chamber's Executive Committee, contact Gary Brackett or 253-627-2175.

Yen for a Buck or a Loon?

Get ready for the 2009 McChord Air Force Rodeo July 20-24. More than 3,500 international visitors will attend from over 20 countries. These teams and observers bring tremendous business opportunities to Pierce County. Keep business in Pierce County by offering your local promotional coupon and discount incentives.

International competitors include: Brazil, Canada, Germany, Israel, Malaysia, Netherlands, Republic of Korea, Spain, Turkey and United Arab Emirates

Observers include: Afghanistan, Argentina, Algeria, Bahrain, Botswana, Hungary, India, Indonesia, Morocco, Nigeria, Oman and Vietnam

Please take this opportunity to offer your coupons to guest registrants. The resulting compilation of promotional flyers will be distributed directly to participating teams during the AMC Rodeo. Last year's teams and observers made many purchases during their stay.

Examples of last year’s anecdotal purchases by participating international team members:

2 Hummers
6 laptops
7 i-Phones
15 TV’s ranging from 32-50 inches
More than 12 bicycles
Countless digital cameras and electronics
Several hundreds of bottles of perfume
Many shopping trips to Nordstrom

A 10-room hotel bill with expenditures over $11,000

To participate please create 3,500 coupons to be distributed in each registration bag. Coupons must be printed in sizes 8.5 X 11 and can include a coupon within the text, delivered to the TRCVB.

Coupon/Discount Deadline: June 30, 2009

Want to participate? Send your participation notice to Andrea Mensink. Promotional flyers should be delivered to the Tacoma Regional CVB at 1119 Pacific Ave., Ste. 500, Tacoma. You are responsible for printing your promotional coupon/discount offer. The TRCVB nor the Chamber will print coupons.

The TRCVB is collaborating with the Tacoma-Pierce County Chamber, so if your business is a member of either/both organizations, your promotional flyer is in one booklet.

A FONSI Lifestyle

Fort Lewis has issued a FONSI (Finding of No Significant Impact) for the proposed Lifestyle Center on Ft. Lewis.

This issue has been presented in more depth on our associated blog.

The levels of significance that were either expressed or implied in the comments and Ft. Lewis's reason for deeming them not significant are:

1. Traffic: The Lifestyle Center in and of itself will not produce significant traffic impacts. Ft. Lewis does recognize that projected installation population growth may produce significant impacts and has initiated an environmental impact statement to address this and other issues connected with this growth.
2. Retail and tax revenues: Ft. Lewis installation population growth should offset any retail and tax losses encountered as a result of the Lifestyle Center increased retail business.
3. Negative cumulative impacts as a result of the downturn in the economy are outside the scope of the analysis and were not considered.

If you have any further questions, please contact Mr. Bill Van Hoesen, 253-966-1780.