Implications for Retailers Every shift in consumer population patterns

112 2: Integrative Case
Exhibit 3.5
Product
Biscuits/Dough
Butter
Fresh Eggs
Juice/RFG
Lard
Canned Ham
Sausage
Baked Beans
Cocktail Mixes
Pasta
Rice/Popcorn Cakes
Cosmetics
Cold/Sinus Tab/Cough
Drops
Deodorant
Hair Coloring
Laxatives
Cat Food
Diapers
Facial Tissue
Paper Napkins
Motor Oil
Shoe Polish & Accessories
Tape
Hosiery
Dallas/Fort
Worth (%)
148*
51
94
74
26
39
134
82
118
71
84
237
157
Houston
(%)
122
57
112
104
121
21
179
76
79
80
69
133
113
San Antonio/
Corpus
Christi (%)
103
39
141
76
**
22
219
51
82
72
58
329
125
West Texas/
New
Mexico (%)
85
57
110
66
419
28
73
60
112
76
73
221
105
119
137
152
88
115
82
71
112
147
163
164
118
122
116
73
135
66
74
92
145
105
126
125
238
164
81
160
64
78
279
171
175
156
86
130
117
67
74
78
68
114
147
149
110
*National average = 100%
**Not measured in this market.
Source: Used with the permission of Information Resources, Inc.
Implications for Retailers
Every shift in consumer population patterns has major implications for retailers, especially when it comes to expenditures made for household products. While these recent
shifts have resulted in a slowdown for downtown retail activity, sales increases in freestanding suburban locations have more than offset any decline.
There are also opportunities for retailers in smaller markets. During the past decade,
retail activity has grown rapidly in secondary markets, areas with populations less than
50,000. Historically, most chain retailers have ignored these markets. But in addition to
their rapid growth, secondary markets are attractive because of the low level of retail
competition, lower building costs, cheaper labor, and fewer building and zoning regulations. As MSAs have begun to stabilize, secondary markets have become more attractive.
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Texas Consumers’ Percentage of National Average Usage