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GREENSBORO - For all of downtown's progress over the past decade - revitalized nightlife, increased residential options, high office occupancy rates - the area has at least one glaring weakness: retail sales.

A study to be released today says the center city has a $75 million spending gap in consumer goods, and the study offers a series of recommendations on how to close it.

A draft of the study says the more than 70 retail establishments downtown - including bars and restaurants, but not the lone car dealership or hotels - currently generate about $43 million a year in sales.

But based on the number of people who visit, shop, work and live in the area, the center city should produce $118 million in transactions.

"The good news is ... this represents an opportunity for savvy retailers," says Ed Wolverton, president and CEO of Downtown Greensboro Inc., an advocacy organization which commissioned the study. "There's been a feeling that there isn't much of a market downtown. What this says is that there is quite a robust market."

Put another way, downtown doesn't have the number or mix of retail businesses to meet current demand.

"Based upon positive perceptions and prevailing usage patterns, downtown's current patrons can be expected to respond favorably to new stores, restaurants, entertainment venues and event programming as downtown's offering grows," says the study, prepared by H. Blount Hunter Retail & Real Estate Research in Norfolk, Va. "It is imperative that downtown Greensboro's offerings remain unique and of high quality ...."

The study, which suggests downtown should not try to compete with Friendly Center or Four Seasons Town Centre, says the center city could support another 100,000 to 300,000 square feet of retail space. Only 64,000 square feet of space is currently available on South Elm Street.

The study suggested a two-year goal for retail growth of between 75,000 to 100,000 square feet.

To close the spending gap, the study recommends:

• Concentrating retail on South Elm. The street already has a group of existing shops and a collection of buildings suitable for retail use. Such a cluster stimulates customer traffic and sales.

"Before the retail core becomes a 'destination' it must succeed by serving patrons who visit downtown for a variety of reasons other than shopping," the study says. " Causing more of downtown's current patrons to think about visiting shops and restaurants when downtown is a major marketing challenge and downtown's greatest opportunity."

• Creating a "priority retail development zone." Covering the first six blocks of South Elm, the designation would encourage shops on ground-floor spaces instead of offices, restaurants and clubs.

• Focusing recruitment efforts on independently owned and operated businesses. This means that it is unlikely for downtown to attract national chain stores in the near future.

Wolverton pointed out that independently owned businesses are the most vulnerable to failure, need training to help them perform better, and should locate in smaller spaces that keep overhead, manpower and inventory low.

• Getting buildings ready for occupancy. The study says too many downtown structures are in bad condition, and their owners expect tenants to fix them up and then demand rents that are too high.

The study also says the city should adopt minimum building maintenance standards for commercial structures similar to those that exist for residential property.

The study also encouraged city government to consider downtown for catalyst projects that would generate additional economic activity.

One possibility would be to move Greensboro Farmers' Curb Market from 501 Yanceyville St. to the center city.

"The fit is very good," says Blount Hunter, president of the research firm. "I see that as low-hanging fruit."

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com