Newark’s downtown Arts & Entertainment District was one of five commercial corridors analyzed by Invest Newark as part of a new report on the city’s retail market. — Photo by Charles David Photography / Courtesy: Invest Newark
By Joshua Burd
Newark’s retail market is thriving yet still largely untapped, according to a new report, revealing a chance for businesses to capture the full extent of residents’ $6 billion in spending power.
The research by Invest Newark, the city’s economic development arm, found that a growing population and an expanding ecosystem of operators and entrepreneurs have helped fuel a surge in activity by consumers. But there’s also significant unmet demand — namely, some $2 billion in spending by residents that takes place outside the city — creating an opportunity for retailers in several dynamic commercial corridors.
“Newark is continuing to establish itself as a prime retail destination for a wide range of national and local retailers,” said Emily Manz, chief business development officer and director of marketing for Invest Newark. “Residents of Newark have immense spending power. Unfortunately, one-third of that spending, $2 billion, is outside city limits. The opportunity to grow local businesses and attract targeted retail to capture that demand is now.”
The Prudential Foundation provided financial support for the report, titled Retail Demand and Opportunity on Newark’s Commercial Corridors. Released earlier this week, the study provides detailed demographic and psychographic data on the consumers visiting five Newark business districts and analyzes the habits of residents across its five wards, highlighting unmet demands in individual neighborhoods as well as areas where the city serves as a retail hub for the region.
“Our city is experiencing a retail renaissance fueled by strong local demand and a growing population,” Invest Newark CEO Marcus Randolph said. “Invest Newark is dedicated to supporting this momentum by providing the resources and capital that are necessary to empower businesses to thrive and keep more consumer dollars circulating right here in Newark.”
Sarah Keh, Prudential Financial’s vice president for inclusive solutions, added: “As an anchor institution in this city, we understand the impact that businesses of all sizes have in powering our local economy. Partnering with Invest Newark on this important initiative will not only empower local entrepreneurs but also strengthen the entire Newark business community, advancing our commitment to drive equitable economic growth in our hometown.”
Complementing the report, also with the support of The Prudential Foundation, Invest Newark recently launched the podcast, Newark Made, and a new resource on its website known as Data Center. The former spotlights the entrepreneurs and business leaders meeting the demand of the city’s residents and visitors in key sectors while also providing practical business insights.
The Data Center, meantime, is a billed as a one-stop hub providing comprehensive information about Newark’s strategic location, workforce, business climate and community assets, providing key insights for local businesses exploring expansion and companies considering Newark as their next growth destination.
“Newarkers know their retail product and price point preferences and, like all consumers, are willing to travel to make their desired purchases,” Newark Mayor Ras J. Baraka said. “This report crystalizes our suspicion that given local options, city residents would certainly spend their hard-earned dollars right here in their own neighborhoods and it encourages us to entice more businesses into our city for their own profitability as well as the satisfaction of our shoppers. We are grateful for this study, which will undoubtedly go a long way in our city’s economic development towards becoming a shopper’s mecca.”
Invest Newark released the report while highlighting several recent business openings supported by the Retail Reactivation program spearheaded by Baraka’s office and Invest Newark programs, including Consigliere Wine Bar, Sweet Jeans Kitchen and Honeypot Montessori. The organization has also provided loans to support two new Market Street eateries — Just Sandwiches and Alletante Italian Restaurant — as well as Caribbrew Café, a Haitian coffee shop, and The UPS Store, a locally owned franchise just north of Newark’s Arts & Education District.
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