Study details office workers’ spending habits
Study details office workers’ spending habits
Office workers make up one-fifth of the nation’s work force, so determining what they spend on the way to work, during the business day and immediately after work is vital intelligence for retailers, according to a new report released by the International Council of Shopping Centers (ICSC). According to the study, office workers on average spend nearly $200 per week on goods and services on their commute and near their office during the workday.
The study found office-worker spending on goods and services and on meals generates $184 billion for retailers in the course of a year. Moreover, office-worker spending is approximately 140 percent higher in markets with ample retail offerings compared with those with limited offerings, suggesting that there is potential for additional retail outlets in these limited areas.
“The study revealed that significant opportunities exist for some types of retailers, restaurateurs and service establishments given low sales penetration rates with office workers,” said Michael Niemira, chief economist and vice president of research for ICSC.
Other findings of the study:
– The largest single cost incurred by office workers is for transportation, which accounts for approximately 18 percent of total workweek expenditures.
– Online personal spending accounts for 15 percent of the typical average weekly expenditures, though this fluctuates greatly by market, with suburban areas having by far the largest total share of online spending.
Assuming there is no change in the average spending profile of the office worker, each percentage-point increase in share of spending by the office worker group will generate $2.7 billion in additional aggregate sales revenue for local businesses and nearly $125 million of additional local sales tax revenues, the study found.
Office workers make up one-fifth of the nation’s work force, so determining what they spend on the way to work, during the business day and immediately after work is vital intelligence for retailers, according to a new report released by the International Council of Shopping Centers (ICSC). According to the study, office workers on average spend nearly $200 per week on goods and services on their commute and near their office during the workday.
The study found office-worker spending on goods and services and on meals generates $184 billion for retailers in the course of a year. Moreover, office-worker spending is approximately 140 percent higher in markets with ample retail offerings compared with those with limited offerings, suggesting that there is potential for additional retail outlets in these limited areas.
“The study revealed that significant opportunities exist for some types of retailers, restaurateurs and service establishments given low sales penetration rates with office workers,” said Michael Niemira, chief economist and vice president of research for ICSC.
Other findings of the study:
– The largest single cost incurred by office workers is for transportation, which accounts for approximately 18 percent of total workweek expenditures.
– Online personal spending accounts for 15 percent of the typical average weekly expenditures, though this fluctuates greatly by market, with suburban areas having by far the largest total share of online spending.
Assuming there is no change in the average spending profile of the office worker, each percentage-point increase in share of spending by the office worker group will generate $2.7 billion in additional aggregate sales revenue for local businesses and nearly $125 million of additional local sales tax revenues, the study found.
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