Economic development report finds citywide retail strength, highlights neighborhood gaps and eight strategies

Barry Matherly of Hickey Global and Economic Development Director Johanna Nelson presented a retail leakage study to the Quality of Life Committee that shows Santa Fe has a citywide surplus of retail sales in most categories but local pockets with unmet demand.

Matherly said the city is “in a position of strength” and urged proactive steps to retain retail advantages, noting that retail now often combines entertainment and experiences rather than only traditional sales. He recommended eight core actions including campaigns to support local retailers, exploring a National Main Street program for downtown, recruiting targeted retailers (for example via the International Council of Shopping Centers trade show), boosting entertainment and family-oriented businesses, conducting primary neighborhood surveys to collect local demand data, launching business retention-and-expansion outreach, and exploring a creative “maker” space paired with culinary or performing-arts functions.

Nelson said the study confirms retail is a substantial local sector — roughly a quarter of the economy — and that the analysis provides a starting point to identify neighborhood-level opportunities and align staff strategies and outreach. She told the committee the city will use the findings to develop tactics in the coming year.

Councilors asked about online marketplaces for local businesses and family-oriented entertainment recruitment. Nelson said a tourism-led platform operated by a vendor called Blue Dot remains active and free for local businesses to join; staff will evaluate whether to build on that service or pursue alternatives. On family entertainment, Nelson said the city is collecting primary data and working with local partners to assess demand; she noted some businesses from nearby Albuquerque said Santa Fe residents already travel there for entertainment and that recruitment will require demonstrating a viable market.

The presentation was informational. Staff said they will finish the full written study and provide it to councilors and advisory groups, and they plan targeted neighborhood surveys and business outreach in follow-up work.