Household spending : what’s the size of the prize?

pie (1)When it comes to store location planning and sales estimation, it’s no secret that every area is different. A close look at household spending behaviours tells you why; income levels, household size, mortgage or rental payments, age and ethnic profile are all variables which impact on the spending capabilities of any area.

In a move set to empower retailers across Australia to better understand the spending abilities and preferences of their customers, a unique dataset combining these factors is now available on network planning platform GapMaps.

To provide this insight into household expenditure capabilities for small areas, GapMaps has integrated MarketInfo, a dataset created by Market Data Systems (MDS). MarketInfo is generated using a highly sophisticated micro-simulation model which draws from the individual household records of the Household Expenditure Surveys conducted by the Australian Bureau of Statistics (ABS). It combines this intelligence with detailed Census data at a small area level.

Tony Dimasi, GapMaps general manager of Global Business Development, believes this dataset is the most comprehensive and accurate of its type.

“In my view, MarketInfo is the best available expenditure dataset in Australia as it’s robust and corroborated by a number of sources,” Dimasi, who has over 35 years’ experience analysing the retail industry, said.

“The data cover all types of household expenditures by resident – retail, housing, utilities, health, education, leisure, transport – and are available both at detailed and aggregated levels. Particularly in the retail sector, the small area estimates are shown to be very accurate when aggregated and then compared with official data like the ABS Retail Trade series, which are available only for very large areas, such as at state level.”

GapMaps clients are taking to the MarketInfo data keenly, with one of the biggest benefits being the confidence of knowing just how much expenditure is available, for any category and in any area or catchment. Why? Because this results in an understanding of just how big the potential prize can be.  The dataset also provides a basis to compare performance across store locations and identify growth opportunities.

Making the data both easily accessible and highly relevant, GapMaps can offer varying amounts of detail on a bespoke basis, responding to each client’s specific requirements. Data can be made available by category, such as the take-home food and packaged groceries category (F&G) for supermarkets, or down to an individual product level, such as bread or cakes and tarts – information valuable for a bakery.

Learn more about GapMaps at www.gapmaps.com or email info@gapmaps.com to learn how expenditure data can enhance your network strategy.  

 

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