Non-Traditional Service Anchors: Rethinking Essential Downtown Businesses

Small towns across Oregon are facing a crossroads when it comes to downtown revitalization. As traditional retail struggles to fill empty storefronts, many city administrators are left asking: What kinds of businesses can truly anchor our downtown and bring lasting vitality? The answer may lie beyond the familiar world of shops and boutiques. By rethinking what it means to be an “essential” downtown business, and focusing on emerging service-oriented anchors, small towns can create lively, resilient main streets-even with limited budgets and staff. This post explores practical ways to identify, attract, and measure the impact of non-traditional service businesses that can transform your downtown into a hub of community life.

Why Traditional Retail Alone Is No Longer Enough

Small-town downtowns in Oregon and across the country face a new reality: traditional retail is no longer the reliable engine of local vitality it once was. Shifts in consumer habits-driven by online shopping, big-box competition, and changing traffic patterns-have left many main streets with vacant storefronts and a sense of uncertainty about what comes next. Even the most passionate city administrators find themselves wrestling with the decline of clothing stores, hardware shops, and other staples that used to anchor downtown life.

Today, food-related businesses and services capture most of the remaining downtown sales, while many retail categories have migrated online or to regional centers. The challenge is clear: to create a thriving downtown, small towns must look beyond traditional retail and embrace new types of service-oriented businesses that meet evolving community needs.

Identifying Non-Traditional Service Businesses as Downtown Anchors

Emerging service businesses-such as co-working spaces, wellness studios, educational centers, and maker spaces-are becoming essential anchors for revitalized downtowns. These businesses offer more than just products; they provide experiences, foster community, and create reasons for people to visit and linger downtown.

Examples of non-traditional service anchors:

• Co-working spaces: Cater to remote workers, freelancers, and entrepreneurs seeking professional environments and networking opportunities.

• Wellness services: Yoga studios, massage therapy, counseling, and fitness centers support health and well-being.

• Educational centers: Tutoring, after-school programs, adult education, and creative workshops draw families and lifelong learners.

• Maker spaces: Shared workshops with tools for woodworking, electronics, or crafts encourage entrepreneurship and skill-building.

• Pop-up concepts: Short-term uses, such as art galleries or seasonal shops, test new ideas and fill gaps.
  

These businesses are not just “filler” for empty storefronts-they can become true destinations, drawing consistent foot traffic and supporting other downtown merchants.

Simple Frameworks for Assessing Community Needs

Before recruiting new businesses, it’s crucial to understand what your community actually needs. Fortunately, you don’t need a big budget or outside consultants to get started. A straightforward community needs assessment can reveal gaps and opportunities.

How to conduct a basic assessment:

• Survey residents: Use online surveys, social media polls, or paper forms at local events to ask what services people wish existed downtown.

• Host focus groups: Gather small groups-parents, seniors, business owners-to discuss unmet needs and brainstorm ideas.

• Leverage existing data: Review school enrollment trends, health statistics, or local employment data for clues about demand.

• Map community assets: List current businesses, public spaces, and underused buildings to identify potential partnerships or locations.

Categorize needs as perceived (what people say they want), expressed (what people are already seeking elsewhere), and absolute (universal needs like health, education, or connectivity). This approach keeps the process manageable and ensures new businesses are grounded in real demand.

Measuring Impact and Building Momentum

To sustain momentum, it’s important to track the impact of new service-oriented businesses. Simple metrics can demonstrate success and attract further investment:

• Storefront occupancy rates: Track reductions in vacancy over time.

• Foot traffic counts: Use manual tallies or inexpensive sensors to measure activity.

• Business longevity: Monitor how long new businesses stay open.

• Community engagement: Collect feedback from residents and business owners about perceived improvements.

• Economic indicators: Note changes in sales tax revenue or local employment tied to new businesses.

Conclusion: Take the Next Step

Revitalizing your downtown doesn’t have to mean chasing national retailers or waiting for a miracle. By identifying and attracting non-traditional service anchors, you can create a vibrant, resilient main street that meets today’s needs and builds for tomorrow. Start with a simple needs assessment, engage your community, and take small, strategic steps to welcome new service businesses.

If you’re ready to develop a more comprehensive business recruitment strategy or need help navigating the process, HSC is here to support your vision. Reach out us to explore how our expertise can help your town create a thriving, future-ready downtown-no matter your size or budget.