Oak Park has a new tool in its fight to attract new retail shops: information.
The village is subscribing to Claritas, a marketing research firm that supplies helpful consumer information for residents of different neighborhoods in and around the village.
“It gives us some idea of the spending power of a neighborhood,” said John Eckenroad, president of the Oak Park Development Corp. “It gives you a feel for what kind of shops you should be looking for.”
Officials hope the information will help them attract businesses local consumers will use, thereby raising sales tax receipts. Today, at least $4 of every $10 Oak Parkers spend goes to businesses outside the village, the data show.
Oak Park has nearly $1 billion in spending power, however retail sales here are just below $550 million. And some of that spending comes from consumers who live outside the village.
Loretta Daly, the Village of Oak Park’s business and redevelopment manager, said she hasn’t had time to analyze the data. “I can’t with any authority [say] what they mean yet,” she said.
But generally, the reports list estimated spending and consumer demand in about a dozen areas, such as “Motor Vehicle and Parts Dealers” and “Sporting Goods, Hobby, Book, Music Stores.”
“So for example, [the reports] can tell you what the consumer demand is for apparel, but they can also tell you what the current supply is,” said Ja’Net Defell, a business specialist with the village. “Usually from those numbers you can determine the market potential.”
The village is ramping up its business recruitment and retention efforts, and sharing its reports with business districts “to make sure that the business community understands their market potential.”
Pat Zubak, executive director of Downtown Oak Park, said the reports are “a piece of the information that we pull together.” She especially likes the Prizm market segment reports, which report on lifestyles of people in different market segments.
In Oak Park, some of the major segments are “Urban Achievers, “Money & Brains,” “Bohemian Mix,” and “Young Digerati.” The Young Digerati are professionals, ages 25-44, with median household incomes of $80,782 and above average income-producing assets. They shop at Banana Republic, order from J. Crew, read Elle Decor magazine, watch the Independent Film Channel and drive Range Rover SUVs, according to information on Claritas.com.
Spending habits are less related to income levels than they are to life circumstances (single, married, kids, etc.), Zubak said, so the profile information is key.
The reports aren’t new. Downtown Oak Park and OPDC have been using them for years. But Eckenroad said the village is getting more in-depth reports and sharing them with the business community at large.
Getting more detailed information helps with the village’s “Great Neighborhoods” initiative-attracting businesses and shoppers not only to Oak Park’s core business areas, but to Harrison Street, Chicago Avenue and other smaller districts.
“[The information] helps because each business needs to understand their market,” Defell said. “As businesses are contacting the various entities within Oak Park, whether that’s in Downtown Oak Park, The Avenue, [whether they’re contacting] OPDC or the village, they may want information on what the market mix is. They may want to open up a new ethnic restaurant, and having that information helps.”
Eckenroad said Harrison Street is a good example of how using market research can help ensure a business’ success. The Buzz Cafe started with questionnaire responses stating people in the neighborhood wanted a coffee shop. Market research showed that the spending power and profiles of nearby residents supported the idea. The result was a business that has since opened a second location in Oak Park, and its owners bought the building next door to the Buzz.
So, does Oak Park have a higher success rate for new businesses than other communities?
“I would think so,” Eckenroad said. Of the 32 businesses OPDC has made micro loans to, only two or three have failed, he said.
CONTACT: dcarter@wjinc.com