Supervisor London Breed introduced new legislation recently to tighten the law restricting formula retail stores in Hayes Valley, inspired by the new GANT store on Hayes Street.
The Examiner reported yesterday that Breed introduced the legislation on May 21st to modify the city's existing law. Currently, formula retail is defined as "a type of retail sales activity or retails sales establishment which, along with eleven or more other retail sales establishments located in the United States, maintains two or more of the following features: a standardized array of merchandise, a standardized facade, a standardized decor and color scheme, a uniform apparel, standardized signage, a trademark or a servicemark." Breed's legislation would preserve that definition on a citywide basis, but expand it specifically for the Hayes-Gough Neighborhood Commercial Transit District. It notes:
The Examiner reported yesterday that Breed introduced the legislation on May 21st to modify the city's existing law. Currently, formula retail is defined as "a type of retail sales activity or retails sales establishment which, along with eleven or more other retail sales establishments located in the United States, maintains two or more of the following features: a standardized array of merchandise, a standardized facade, a standardized decor and color scheme, a uniform apparel, standardized signage, a trademark or a servicemark." Breed's legislation would preserve that definition on a citywide basis, but expand it specifically for the Hayes-Gough Neighborhood Commercial Transit District. It notes:
"The Hayes-Gough NCT is a special neighborhood in which housing, shops, work places, parks and civic facilities intimately co-exist to create a strong identifiable neighborhood, which attract tourists and City residents from outside Hayes Valley. In addition, the neighborhood invites walking and bicycling and the mix of unique small business contributes to a strong sense of neighborhood community. Hayes Valley is part of a global economy, attracting business and visitors from around the world. Therefore, the neighborhood is particularly sensitive to incursions from formula retail, whether it is an international, national, or local formula retail business."For the Hayes-Gough NCT only, Breed's legislation would redefine "formula retail" as any retail establishment with eleven or more locations worldwide, and would include any establishment where 50% of the business is owned by a formula retail business. This is meant to cover situations where a brand like GANT Rugger or Athleta might have fewer than 11 stores worldwide, but is an offshoot of a much larger business that falls under the formula retail definition (GANT and GAP, respectively). As the Examiner notes, while the proposed legislation only applies to Hayes Valley, it "may be expanded." It now must wind its way up to the full Board of Supervisors for a vote. If approved, it would go into effect 30 days thereafter. We'll keep an eye on it.
