Where Will Consumers Spend? A CPN-Claritas Special Report
 
CPN and Claritas present an analysis of discretionary spending and its effects on retail expansion
This tough economic climate may impose some difficult times for retailers selling high-end and other products generally considered as discretionary spending. High fuel and grocery prices and rising unemployment on top of the housing crisis are making it more difficult for consumers to look beyond necessity products and services. However, some chains continue to expand, offering opportunity for retail real estate owners to fill space-as long as it is in markets where money is being spent. CPN has partnered with sister business Claritas, a service of The Nielsen Co. that specializes in retail-related demographic and marketing research, to rank the best and worst geographic prospects for retail expansion, based on consumer spending power in those markets, along with an examination of this trend toward necessity over discretionary spending. For the full report, please click here.
 
Consumer Spending: Discretionary Sales Per Capita

Eating Places

Clothing

Department Stores excluding leased

Jewelry stores

Camera/Radio/TV/Electronics Stores

Total Consumer Expenditure
 
Consumer Spending: Potential by Region

Northeast: Total Consumer Expenditure

Mid-Atlantic: Total Consumer Expenditure

Southeast: Total Consumer Expenditure

Southwest: Total Consumer Expenditure

Midwest: Consumer Expenditure

West: Total Consumer Expenditure
 
Investment Capacity: Sales by Region

Northeast: Matrix

Mid-Atlantic: Matrix

Southeast: Matrix

Southwest: Matrix

Midwest: Matrix

West: Matrix
 
Additional Research: Necessity Spending Report
While discretionary retail categories are expected to suffer as consumers focus more on necessity spending, more necessary retail categories are also feeling the effects of the economic downturn. But some retailers are still expanding. A special report in the May 1 issue of CPN examined performance and opportunities in the necessity retail sector, with an accompanying analysis of data by demographic and marketing research provider Claritas, a sister Nielsen Co. business that provides retail real estate owners with guidance on whether to expand, maintain, limit or pull back on investment in U.S. markets.  Click here to access this information.
 
Methodology:
Claritas, a service of The Nielsen Co., based its consumer-buying-power data on the U.S. government's consumer expenditure survey, which measures potential spending for various products and services, and on 2007 population and demographic data for consumers living in each market. Consumers could make their purchases outside the markets where they live. Determinations for the matrix classifying investment capacity of markets by region originated with three pieces of information, which were used to calculate two values. The first value, an average per-capita measure, equals the total market sales divided by market population. The second value, an average per-store measure, equals the total market sales divided by the market's relevant retail outlets. These measures were then compared to similar nationwide measures. When the results were placed on a matrix, each market fell into one of four possible categories: Maintain, Expand, Exit and Consolidate. Scoring is for each market as a whole. Variances could occur within each market.
 
CPN has partnered with sister business Claritas to provide the commercial real estate industry with data and analysis useful in shaping effective retail real estate strategies.
Claritas, a Nielsen Company, is a marketing information resources company dedicated to helping companies engaged in consumer and business-to-business marketing. We are dedicated to maximizing our clients' profitability with targeted and measurable marketing programs and enterprise-wide technology solutions.
For more information on Claritas, click here.
 
Feedback:
We at CPN would appreciate your feedback on how you are able to use the provided data and on other data you need that we could provide. Please email editor-in-chief Suzann D. Silverman at suzann.silverman@nielsen.com with your thoughts and experiences.