A RETAIL MARKET ANALYSIS FOR ELIZABETHPORT

Report to Brand New Day, Inc.

May 29, 1996

SURVEY

We conducted a survey of seventy-seven Elizabethport residents and shoppers over a two-week period in February and March of this year. The survey (see Appendix 4) was designed to determine the retail needs and shopping patterns of local shoppers and residents. The survey information complements the inventory in determining gaps in the market by identifying existing businesses that do not meet customer needs and by identifying what businesses residents feel the area lacks.

When deciding where to administer the survey we sought input from the Elizabethport Task Force, comprised of representatives from the public housing tenant associations, the community police substation, the Elizabeth Housing Authority, the Elizabethport Presbyterian Center, the city of Elizabeth Department of Family and Children's Services, and Brand New Day. Interviews were conducted at various locations. On weekends, surveyors approached respondents mostly on the street, primarily in front of the bus stops at the corners of First Street and Magnolia Avenue as well as Second and Pine Streets. During the week, we administered surveys in front of the elementary school (Public School No. 1) as parents picked up their children, in front of the Elizabethport Presbyterian Center, and in front of some of the local businesses.

Each survey took an average of about three to five minutes to complete, and was conducted in a face-to-face interview format. The survey's eight questions focused on the respondent's preferences for new retail and service businesses in Elizabethport, current shopping habits, and demographic information. Respondents were first asked how often they shopped in Elizabethport and if they were the primary shopper in their household. The respondents were then asked to list the top three types of shops they would like to see in Elizabethport. A follow-up question asked respondents where they currently met their retail needs. The respondents were given a choice of responding "in Elizabethport", "near Elizabethport", or "far from Elizabethport". This question was designed to help rank the importance of each of the retail demands and to determine existing buying patterns. Finally, respondents were asked their age, household income, and to identify the closest intersection to their place of residence.

The seventy-seven individuals surveyed were largely representative of the Elizabethport population. The sample is balanced by gender and age and largely reflects the of the community (Table 3). The Hispanic population of Elizabethport, however, is underrepresented in the survey sample. When doing the surveys we approached several people in the street who spoke only Spanish, and we were consequently unable to survey them. Our background research, including a review of data from the 1990 Census and a meeting with the Elizabethport Task Force, led us to underestimate the language barrier. Although the underrepresentation of the Hispanic population may affect the results of the survey, African-Americans make up a majority of the residents living in the primary trade area and in the immediate area of the Brand New Day buildings.

Nearly one-third of the respondents considered themselves the primary shoppers in their household. Nearly 80 percent of the respondents lived in the primary market area, while 9 percent lived in the secondary areas. The remaining 11 percent lived outside of the neighborhood, but either shopped or worked in Elizabethport on a regular basis.

Over one-third of respondents indicated that they shopped in the neighborhood daily while 22 percent said they shopped in the neighborhood between two and four times per week. Slightly more than one quarter of respondents said they shopped in the neighborhood once a week, while 8 percent said once a month, and 10 percent said they shopped in Elizabethport less than once a month.

Clothing and Shoes
A clear majority of respondents, 65 percent, indicated that they wanted a clothing store to locate in Elizabethport. Over 80 percent of these respondents reported shopping for clothes and other apparel outside of the neighborhood. Nearly half of these respondents reported traveling "far from Elizabethport" to meet these retail needs. Due to the small number of clothing stores in the community, residents must travel by bus or car to buy these goods. Nearly one-third of the respondents indicated that they wanted a shoe store to be located in Elizabethport. Like those requesting a clothing store, these respondents indicated that they traveled outside of the community to purchase shoes.

Groceries
A sizable number of respondents, 45 percent, indicated that they wanted a grocery store in the neighborhood. Only 15 percent of these respondents reported doing their shopping for groceries in stores "in Elizabethport" while nearly half indicated they shopped for groceries "near Elizabethport." Many explained that they traveled by bus to Broad Street in Elizabeth to purchase groceries. The finding that an overwhelming majority of Elizabethport residents travel outside of the neighborhood for groceries shows that the existing food stores are not providing a satisfactory level of service for neighborhood residents.

Restaurants
Nearly 20 percent of the respondents indicated that they would like to see a fast-food restaurant in the community. Slightly more than 10 percent of all respondents indicated a preference for a sit-down restaurant. The vast majority of these respondents reported traveling outside of Elizabethport to eat-in restaurants.

Drug Store and Variety Store
More than 14 percent of respondents reported that they wanted to see a drug store in the community and the vast majority of these respondents indicated that they traveled outside of the community to shop for these goods. Nearly 10 percent of those surveyed requested a variety store to locate in the neighborhood.

By inquiring about shopping patterns and most desired retail shops, the questions may have steered respondents away from indicating that they wanted to see additional service businesses such as laundromats, video rentals, and shoe repairs in the community. In spite of this, we feel that the question did provide us with valid answers about the retail needs of the community.

Originally, one question was included in the survey to determine how people traveled to do their shopping. However, answering the general transportation question as it was written became difficult for respondents. Thus, interviewers rephrased the question in different ways, making answers impossible to compare. We eventually threw the question out, deciding that transportation information is not essential for our primary goal.

In an attempt to gauge income and spending habits, we asked respondents to tell us which of five income categories best describes their total annual household income from jobs, social security, and public aid. Many respondents experienced difficulty and were hesitant to answer this question, therefore the results are unreliable and inconclusive.