THAT GRAND OPENING FEELING: Ikea remains a draw
Other big retailers take a closer look at Canton

August 7, 2006 Detroit Free Press, Republished for this Blog by Ralph Marcus Maupin, Jr., (Mark) Budget Realty, LLC

BY GRETA GUEST

Two months after Michigan's first Ikea store opened in Canton, it can still feel like opening day on weekends as a DJ plays tunes in the parking lot, hot dog vendors whip up quick 50-cent lunches and a good parking spot is hard to find.

Betty and John Shnell of Sylvan Lake found that Sunday morning wasn't too crowded. They took their two kids, Giulia, 8, and Alvaro, 10, to the store to pick out a new bedroom set for Giulia after dining at Ikea's restaurant.
"I heard it was crowded," Betty Shnell said. "You would have to take a bus and I didn't want to come."

So the Shnells just waited for a Sunday morning because "everyone's at church right now," John said.

Ikea hasn't kept all the success to itself. Its mere presence has made other retailers feel more confident about Michigan's shaky economy and two new shopping centers and a Costco are planned for Michigan Avenue, not far from the store at Ford and Haggerty.

"Ikea is kind of a super catalyst. It is on a corridor that was already strong, but now Canton is really on the radar screens of retailers looking at southeast Michigan," said Dave Long of CB Richard Ellis. The real estate development company is lining up national retailers for a 500,000-square-foot shopping center at Michigan Avenue and Morton Taylor in Canton. Long said he couldn't announce any retailers yet but he expects the center will start construction next summer if all goes well with signing tenants.

"Retailers have this caution over the state's economy," Long said.
The best times to explore the 311,000-square-foot IKEA home furnishings store are weekday mornings, store manager Mark McCaslin said.

The store has been so successful it put approximately 100 temporary employees on the permanent payroll of more than 500 workers. And it's running four shuttles to two overflow parking lots, aside from the one that has room for 1,300 vehicles around the bright blue and yellow store.
"Foot traffic has definitely exceeded all expectations. Sales wise, yeah, we're above target," McCaslin said. "It's more, from my standpoint, a question of after school starts what traffic will be like in October. Then we will see how busy we will be."

And McCaslin has a host of promotions planned to keep up the pace through the end of the year, including a back-to-college giveaway that's likely to entice students -- a drawing for a year's free tuition up to $20,000. Entries will be accepted at the store from Wednesday to Sept. 30.
Ann Grimm, a schoolteacher from Lansing, was looking at rugs and accessories for her classroom Sunday morning. She plans to return every few months to finish a wish list that covers tables, organizers and other items.

Kathleen Salla, downtown and community development coordinator for Canton, said a number of retailers have studied the township because of its demographics.

From 1990 to 2000, the township's population increased 34% to 76,366, median home values were up 78% to $194,100 and median household incomes rose 54% to $72,495, according to U.S. Census data.
"Many of the retailers have been looking at Canton and then when Ikea made that selection that solidified their thinking that this would be a good location for them," Salla said.

Another new shopping center planned for Michigan Avenue and Beck Road, would add 300,000 square feet to Canton's retail options. It will likely be anchored by a Target store and open in the spring of 2008.

Daniel Stern, a partner in Lormax/Stern of West Bloomfield, which is developing the center with Grand Sakwa, said he expects to bring 25 retailers to the area.

Stern said the area is ripe for retailers as the population grows. Soon, more than 200,000 people are projected to live in the market and that would entice some specialty retailers to open a second store in the township, he said.

"A lot of the letters of intent will be the second store for a lot of retailers," he said. "That is how strong retailers view Canton Township right now."
The township also will welcome two new Starbucks stores, a Best Buy across Ford Road from Ikea, and a new Borders Books & Music store in separate developments.

Retailers, restaurants and hotels near the Swedish retailer said they are booming as well.

The Fairfield Inn Marriot across Haggerty Road from Ikea is planning an addition to handle the extra business.

The Chili's restaurant in the same shopping center has seen a 40% boost in sales, said manager Eric Davis. He's hired 10 more servers and five cooks to keep up with the extra business.

"Trust me, there are plenty of managers who would be happy to be at this store," Davis said.

And the biggest headache everyone dreaded -- massive traffic congestion on Ford Road -- didn't materialize, Salla said.

"The good news is the traffic has been very smooth. It's just been a very good experience all the way around," she said.
Contact GRETA GUEST at 313-223-4192 or gguest@freepress.com.