A recent study by the Sparks Street BIA reveals an untapped market of affluent, young professionals that could turn Sparks Street into a financial goldmine, ending the pedestrian mall’s long history as one of the city’s most under-utilized retail resources.
The study, completed in May, shows that a boom in the construction of condos in Centretown has led to an influx of professionals aged between 30 and 49 with an average household income of $84,000 and growing.
Long considered a lunchtime destination for office workers, Sparks Street, the study explains, has been unable to capitalize on this increasing buying power due to a lack of businesses that cater to the high-end tastes and needs of this affluent population.
The 100-page report suggests the solution is to develop the mall into an upscale consumer environment. Statistics show the most successful Sparks Street businesses are the higher-end ones such as Holt Renfrew.
Based on these findings, the BIA has created plans to revamp Sparks Street to allow Canada’s first pedestrian mall to benefit from these demographic changes as well as the estimated five million tourists that visit each year.
“We want to turn Sparks into a vibrant hub within the downtown core that offers a higher value experience,” says Les Gagne, BIA’s executive director.
The BIA reached out to the community conducting more than 600 interviews. More than 80 per cent of people said the mall should have higher-end stores and more attractions.
“Outside of nice weather and lunchtime, Sparks Street is a kind of a wasteland,” says Carleton University economics professor Robin Ritchie. He added that any plan to bring more people to the area is positive.
Ritchie said the BIA have done their due diligence in calculating the plan's potential risks and rewards.
The revamping of Sparks Street is promising due to the expected 2014 completion of several major infrastructural projects as well as plans for an LRT stop near the mall, explains Gagne.
Four of the street’s largest buildings are almost entirely vacant due to renovations. The BIA wants property owners to lease these spaces to high-end, independent businesses.
"In general, everone in the community would like to see the area be developed," says Centretown Citizens Community Association vice-president Robert Dekker. "There can never be enough things to do downtown, as far as we're concerned."