In an effort to build upon Downtown Louisville’s successful museum and entertainment districts, the Louisville Downtown Development Corporation has recently begun to focus its attention on improving the quantity and quality of retail offerings within the urban core.  Encouraged by an 11% increase in Downtown employment over the last decade, the opening of the KFC YUM! Center, and an increase in the number of market rate housing units, LDDC hired Village Solutions Company to conduct a retail market study for all of Downtown Louisville in January, 2011.  Upon its completion in April, the retail market study concluded that Downtown Louisville currently averages $235 million in annual retail sales.  The study also stated that given the existing downtown worker, residential, and visitor markets, the average annual retail sales potential for downtown Louisville is $448 million. 

In order to best take advantage of this potential opportunity in the marketplace, Village Solutions recommended creating a unique downtown retail district along the 500 and 600 blocks of South Fourth Street. With historic ties to retail and commerce, South Fourth Street contains the remnants of a once thriving retail corridor. Mid-century modern storefronts continue to line both sides of the street and many contain recessed entrances with large display windows. Revitalization plans for South Fourth Street call for new and exciting retail concepts to blend with the existing mid-century modern architectural heritage of the street. This integration will serve as the foundation for a downtown retail district, which will also include new restaurants and entertainment venues.

Of the nearly 345,000 square feet of ground floor space within this two block corridor of South Fourth Street, 43% is currently vacant, and 57% is occupied. This ratio of occupied to unoccupied space will enable existing businesses on South Fourth Street to benefit from the retail recruitment efforts of the LDDC. A consistent theme centered on arts, fashion, and design will be implemented as part of the scope of the South Fourth Street retail enhancement plan. Additionally, over 20 vacant parcels are recommended for the location of small, independent retailers. Targeted retail concepts for the district include an artist’s co-op, reclusive retail – which takes advantage of alleyways and courtyards, and rarity retail – which focuses its attention on stocking unique, one-of-a-kind merchandise. By differentiating itself from other shopping experiences in the region, South Fourth Street will be able to capture a larger percentage of the target market, while simultaneously positioning downtown retail as an enjoyable shopping destination.