NEW ORLEANS (PRWEB) May 27, 2019
Unless you go back to the 1970’s, New Orleans East has never been an economic driver for the area. Even though it is the largest land area in New Orleans, if you ranked all the cities over 50,000 population by income per capita, the East would rank not in the bottom 10 percent but in the bottom ten. The closest city comparable to its economy is Flint, Michigan.
There is opportunity; however, especially if you follow the investment philosophy of buying straw hats in winter, and Louisiana Commercial Realty has completed a detailed research report which discovers there is a real need for grocery stores, sporting goods stores and restaurants in the East.
Using the latest technology to determine consumer spending which measures demand, then matching demand with supply, measured by sales figures from the 1,300 businesses already in the East, we find what is called the Marketplace Gap. This is the amount of money flowing out of the area because there are not enough businesses to satisfy demand.
For example, businesses in New Orleans East sell $53 million of groceries annually; however, residents of the East spend $82 million annually, with $29 million leaving the area. That means there is a real need for a grocery store in the East, and forecasted sales would be at least $29 million. Businesses find a way to fill the void and offer products that consumers are already buying elsewhere.
The Retail Market Potential Analysis shows the number of adults purchasing specific products; for example, the index of 122 for buying cigarettes at a convenience store the last 30 days means that behavior occurs 22% more than normal which means there is more demand, but there are only 7,488 adults making that purchase. Businesses coming into the area need a higher number of buyers, such as these purchases:
- 33,709 shopped at a convenience store the last 6 months.
- 20,807 purchased a cell phone the last year.
- 40,617 drank bottled water.
- 10,784 bought costume jewelry, but 10,697 bought fine jewelry.
The Retail Goods and Services Expenditures Analysis shows how much money was spent, which can be used to determine market size for new businesses moving to the East:
- $138,595,522 was spent on food, with $82,390,590 spent on food at home and $56,204,932 spent dining out.
- $16,503,337 spent on cable and satellite television.
- $3,210,066 spent on membership fees for clubs.
- $10,044,806 spent on furniture and $5,562,838 spent on appliances.
- $7,639,413 spent on child care.
- $3,210,066 spent on club memberships.
Taking into account the needs of the 75,000 people living in New Orleans East and the 1,300 businesses in the area, there is sufficient demand for these businesses to enter the market and be successful:
1. Grocery Stores
2. Sporting Goods Stores
4. Furniture Stores
For the full report, click on the attachment, "Analysis of Businesses Needed In New Orleans East".