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C h a p t e r 5 R e ta i l S t r at eg i e s
The trade area is oriented towards families and empty-nesters to a greater degree than the MSA as a whole, with 44% of its households containing one or more children (versus 37%) and with above-average percentages in the 45–64 and 5–17 age ranges. The share of “Millennials”, aged 18 to 34, is noticeably lower, at 18% (versus 24%). The median household income of $74,000 is significantly higher than the MSA’s ($64,000), with some 33,000 households earning $75,000 or more and 11,000 making $150,000 or more. Real discretionary income, however, is impacted by the prevalence of young families, which not only have mouths to feed but also, with 66% of trade area households, mortgages to pay (versus 54%). Another layer of market analysis is “psychographics”, which divides the U.S. population into “segments” based on qualitative characteristics such as lifestyles, sensibilities and aspirations. The three largest in the trade area, according to ENCI’s Tapestry Segmentation scheme, are Soccer Moms (representing 23% of the households), Up and Coming Families (15%) and Middleburg (14%). Each of these will be introduced in turn, and refined later in accordance with the consultant’s own framework and observations.
mortgages and auto loans. As consumers, they value convenience and while they spend less on apparel than the national average, they will buy for their kids, with purchases of apparel and toys.
Up & Coming Families
Median Household Income = $64,000 Median Net Worth = $96,000
These households also gravitate to new subdivisions on the suburban periphery, largely for the affordability. They, too, consist of two working parents, with hectic lifestyles due to their commutes and kids, but in comparison to Soccer Moms, they are younger and at an earlier life stage, and they carry additional forms of debt, such as student loans and credit cards. For these reasons, they tend to be price-sensitive shoppers, also spending below the national average on apparel. Finally, they are far more ethnically diverse, representing the upward mobility of today’s Hispanic and African American populations.
Middleburg
Median Household Income = $55,000 Median Net Worth = $89,000 These households represent “old line” Wake Forest, the ones that are not necessarily connected to the growth of the larger region but that have now been surrounded by it. They consist of young couples, many with children, who live in older or mobile homes. Their sensibilities tend to be more conservative, with a focus on family, faith and country. They are thrifty shoppers, most willing to part with their money for children’s apparel and toys, family restaurants and home improvement projects, and they prefer to buy American. They also like to bowl.
Soccer Moms
Median Household Income = $84,000 Median Net Worth = $252,000
These are households that prefer new single- family housing on the suburban periphery, away from the bustle of the urban core, yet within the commuter shed. They consist of two working parents, busy and time-harried owing to their lengthy commutes as well as their growing children. They typically carry high levels of debt, with multiple home
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