WHY DOES THIS MATTER? $75K Median HHI, College Educated, 18-35 Years Old, Hispanic Female

It Was What We Had, But Is It What We Should Use?

#Retail and #CRE have always used demographics. It's been a mainstay data set in site analysis and defining and keeping a targeted consumer. But a closer look shows a disconnect between what demographics are and how they are still being used.

So what do demographics tell us?

Demographics provide insights into the characteristics of a population and are crucial for understanding societal, economic, and cultural dynamics. By understanding demographics, organizations and governments can make informed decisions to address societal needs, forecast trends, and tailor strategies for growth and development.

But the fundamental flaw in using demographics for retail and CRE is this: Just because people reside in an area (home) doesn't mean they will transact and consume in that area.

Now...I understand the concept of neighborhoods (and live-work-play and community) in how people shop, but aren't many people outside of their "home areas" during the day or seek out specific brands or foods outside of their core market? And how people behave and where they go during the weekend vs. the weekdays are often very different.

Plus, don't get me started on trying to decipher any impact on shopping behaviors from remote work, post-COVID. For every study that shows an impact in behavior, there is a study that show a "return to normal" (whatever that means!). Speaking of "normal,"

Consumers are not "normal." Their behavior is unpredictable...always has been...always will be.

So what's my point with this diatribe? I will steal another quote from the David Allison book:

"Demographics don't really show us anything meaningful about who people are."

While I don't 100% agree with this quote, what I do think matters is that demographics, by themselves, don't show us who visitors to a location are.

Create a Recipe with the Right Data "Ingredients" to Understand Who is At/In Your Location

The need to visit a Whole Foods Market is very different than the need to visit an AT&T or DICK'S Sporting Goods. And who these consumers are differ between segment, brand, etc.. So when looking to uncover who your customers/visitors to a location are, create a recipe of data ingredients to analyze starting with first party data and understanding that you may be able to afford anything, but you definitely cannot afford everything.

Demographic data
Persona/Psychographic Data ( Spatial.ai is still my favorite)
Transaction Data ( Affinity Solutions and Earnest Analytics are two good ones)
Vehicle Traffic Data ( INRIX amongst a few others)
Market Data & Competitor Data
Construction Data (Openings & Closings - ChainXY, Overture, Hubexo, SafeGraph)
Mobile Location Data ( Placer.ai and Unacast would be where I would look)
Health Ratio/Financial/Performance Data ( ICSC data is a great place to start as is RetailStat, especially for the grocery segment)
Etc, Etc, Etc

IN THE NEWS

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"Entering 2025, proptech is set to grow and consolidate in unprecedented ways, as investors and entrepreneurs attempt to gauge the effect of artificial intelligence and other digital integrations on real estate demand for greater return on investment."

Malls are using new restaurants to draw consumers as shopping centers reinvent themselves

"Mall owners are devoting more square footage to restaurants and bars in the hopes that diners will shop after dinner."

Curbside King: How David Lukes Cornered the Market for Unanchored Retail

"On Oct. 1, David Lukes, CEO of Site Centers, spun off the firm’s unanchored convenience portfolio into a new publicly traded real estate investment trust (REIT) called Curbline Properties. By bringing public money into a long-neglected sector of the retail space — unanchored convenience stores — Lukes has institutionalized a sub-asset class that has seen its importance skyrocket in recent years, even as the business model bucks conventional wisdom."

4 Retail Trends That Will Reshape The Industry In 2025

"What will be the key retail trends that reshape the industry? As we move into 2025, business owners and leaders need to be prepared to adapt."

NOSTALGIC RETAILER SPOTLIGHT:

LINENS 'N THINGS

"In November 1958, Eugene Wallace Kalkin established a leased-linen department in the New Jersey discount retailer Great Eastern Mills. In August 1970, Great Eastern Mills opened the first Linens 'n Things store in East Brunswick, New Jersey. After a succession of corporate ownership changes and the bankruptcy of Daylin, Inc. in 1975, Kalkin bought seven locations out of bankruptcy and founded an independent parent company, which became Linens 'n Things, Inc.." [Home Textiles Today]

In 1983, Melville Corporation acquired the 55 unit chain. By 2006, the chain boasted 571 stores in the U.S. and Canada. The company's business strategy was "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."[The Wayback Machine]

But with a ton of debt from private equity buyouts (I know we have never heard this story before), all Linens 'n Things stores were closed in late 2008.

As with many of the retailers in this series, the brand went online only with a relaunch in early 2009 and then shut down their online-only presence in 2018.

The rights to the brand were acquired by Retail Ecommerce Ventures in 2020 and the website was relaunched. As of today, it is active with brands of yesteryear showing on the top banner that live on in an online only fashion.