Newark Residents Could Generate $2 Billion If They Shop Locally, Report Says

NEWARK, NJ — Newark residents wield some immense spending power, but much of it – nearly $2 billion – is spent outside of its borders, a new report says.

The good news? The retail market in New Jersey’s largest city is surging, fueled by a growing population, consumer spending that approaches $6 billion per year, and an expanding ecosystem of businesses, according to a study from Invest Newark.

The bad news? Too much of that money is leaving the city, the study said.

View the full report online here.

“Residents of Newark have immense spending power,” said Emily Manz, chief business development officer and director of marketing for Invest Newark.

“Unfortunately, [a third] of that spending, $2 billion, is outside city limits,” Manz continued. “The opportunity to grow local businesses and attract targeted retail to capture that demand is now.”

Some key takeaways from the report include:

GROCERIES – “Despite surplus in A&E and strong supply in IBID, millions in grocery demand remain unmet. Residents make about 1 million grocery trips outside their neighborhoods to nearby stores like ShopRite, Super Fresh, Seabra’s and Aldi.”

PHARMACY – “Residents make over 250,000 pharmacy visits outside their neighborhoods—most frequently to Walgreens locations.”

RESTAURANTS – “Although A&E and IBID have a surplus of restaurants, Newark residents make roughly 330,000 trips to full-service restaurants outside their neighborhoods—with one-third of those visits coming from A&E residents.”

SPORTING GOODS/HOBBIES/MUSIC INSTRUMENTS – “Even with lower overall demand, 30,000 trips for sporting goods, hobbies, and musical instruments still represent a meaningful leakage from Newark neighborhoods.”

Each of Newark’s five neighborhoods has its own unique set of “unmet demands,” the report found:

According to advocates, the proof of Newark’s growing retail sector can be seen in recent business openings supported by the city’s Retail Reactivation program and Retail Reactivation Grants via the opening of Consigliere Wine Bar, Sweet Jeans Kitchen, and Honeypot Montessori.

Meanwhile, Invest Newark loans have supported 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.

Other recent additions to Newark’s business community include Panda Express, 30 Burgers, Taste of the Caribbean Market, The Vault, and the upcoming openings of Newark Culture Club and Phenix Salon Suites, both on Mayor Kenneth A. Gibson Boulevard.

“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 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,” Baraka added.

The report was developed with financial support from The Prudential Foundation.

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