If you’ve ever been to a large city (New York City, Chicago, Denver, etc.), it doesn’t take much to notice that different areas of town can look completely differently. Just a few blocks from each other, neighborhoods can have a completely different vibe, look, and type of people. If you have different types of people who do different jobs, and live different ways, it requires different types of stores to be able to meet their needs. Think I’m overgeneralizing? That all people need the same types of things, so the stores in these shopping centers need the same stores? Well, it’s true that all people require clothes, food, etc., the prices and styles of these things can vary widely. Here are some examples of stores/types of stores that can change drastically based on the demographics of the area.
- Poorest vs. Richest: In Poorer areas (median household income less than $42,000 per year) fashion stores are most prominent, with discount stores like Shoe Carnival, less expensive accessory stores, and a bit of food. In Richer areas (median household income greater than $77,000 per year), there is a much wider variety of options, with fashion and accessories, food, health/services, and variety stores split pretty much evenly. The richer areas have more than just the basic fashion, accessories and food, but also different types of accessory filled stores, more eclectic types of food, as well as different, interesting variety type stores. It’s easy to see that the people with more money have many more options available to them than those in less desired parts of town.
- Youngest vs. Oldest: In areas with a higher concentration of people under the age of 18, a lot of variety is required. The younger the person, the more you’re going to need to do to draw them in and keep them interested. So, a lot of variety, as well as a large dose of health related services are needed. The younger generations are becoming more and more concerned about maintaining their health from a young age, so if the young crowd is what you’re looking for, healthy is good! Now, on the other hand is the older crowd (those over the age of 65) tend to be more worried about getting the things they really need to get, not so much all the silly, fun variety of the younger crowd. Their shopping areas tend to focus heavily on clothing and accessories, with a little variety thrown in to be able to get everything you need in one place. Older patrons want to get everything they need, quickly, in one place so they don’t have to go all over town for what they want.
- Least vs. Most Educated: In areas with many people who have had a higher education, there is going to be more variety of options so that they can find anything they could possibly want. Fashion, food, and variety are most prevalent, with health options thrown in for those who are more health/beauty conscious. Areas with people who tend to have less education focus on fashion, food, and tools needed, likely, to use for working their jobs or on their homes. Lesser educated people also tend to make less money, so their choices are more discounted than their higher educated counterparts.
- Ethnicity counts: Areas where people of different ethnicities and nationalities also differ in the concentration of their stores in shopping areas. Areas with higher populations of Caucasians are completely different than in African American, Hispanic or Asian influenced areas. Higher variety occurs in areas of increased Caucasian population, while more exotic offerings are found the the Hispanic or Asian areas.
Regardless of your status in life, you must be aware that different types of people, whether they be different income brackets or different ethnicities, need and want different things. With examples like this, it’s easy to see that if you are careful when planning your shopping areas, you can really target your demographic, and get those customers in your store!