The Mood at Retail in Encino

Is it getting better or is it getting worse? There seem to be more FOR LEASE signs in Encino than a year ago. It now seems possible that retail districts actually may shrink over the long term as home-based businesses increase.

At its heart this debate is about how we want Ventura Boulevard to develop. An urban feel with greater density would benefit retailers and the City has permitted urban density with high rise residential accommodations. But most homeowners resist this and want a quiet suburban feel. Each group then is torn over whether they want Ventura widened further and more parking provided. This makes for a hopeless impasse where we get MORE traffic on Ventura and LESS potential for retail. Everybody loses. Think of Encino Town Center or The Village at Tarzana, which have zero urban feel and are totally dominated by the cars speeding by. A fiasco. Studio City (photo) is doing better.

The standoff is even within families. My wife wants to be able to drive quickly to the gym at the Galleria every now and then; I want “traffic calming” with median islands, curb extensions and corners with reduced turning radius and ultimately a pedestrian district or two. I know I will get my way in the end; this path we are on is not going to work.

So where is Encino Chamber of Commerce in all this?

The Chamber apparently lacks any kind of vision or lobbying expertise. Business owners historically have shied away from politics but they are going to have to embrace them if they want Encino to have a vibrant shopping district. They need to weigh in on the now out-of-date “Ventura-Cahuenga Boulevard Corridor Specific Plan” and “Encino-Tarzana Community Plan” or start publicizing their own plan instead of leaving it to the anti-growth Encino Neighborhood Council who want the impossible.

A few other quick observations about trends:

There is still a lot of money here, especially in the hills, and if retail bounces back, it will be because of that money. But right now I don’t see it.

I think we will see an increase in “seasonal” retailers. The Halloween stores pop up every September and Toys ‘R’ Us is pioneering temporary mall-based Express stores during the Christmas shopping season. Why wouldn’t other retailers follow suit? There is a related trend as smaller retailers take short inexpensive leases to promote their brand for a few months and then switch to purely internet-based sales.

The State of California is now cracking down on unpaid sales taxes. Whenever you order something online from out of state you are supposed to pay it or declare it on your tax return. If the State persists, this may help local businesses by making their prices more competitive on bigger ticket items.