Study: how housing trends impact Retail Sales.

There is still one recession-proof category of retail consumers: new movers. According to a research report published today by Epsilon, the industry’s leading marketing services firm, the average new resident spends $7,300 on everything from window treatments to take-out meals in the three months following a move. In the final months of 2008, however, there were 20% fewer movers than the same period in 2007.

The new report, entitled Target: New Movers, tracks move frequency and merchandise buying patterns among 38 million Americans to gain a deeper understanding of which categories of retailers have the most to gain by targeting new movers and the level of economic impact an increase in moving activity might have on the retail category. New mover data was benchmarked against Epsilon’s database of consumer purchase behavior and home sales data from the National Association of Home Builders and the National Association of Realtors.

The following were among the report’s key findings:

* Fewer Movers in 2008: The number of new movers nationwide was down approximately 20% year-over-year in November of 2008. A total of 14 million households moved in 2008, versus a historical average of over 18 million.

* More Renters than Buyers: The Epsilon Target: New Movers data, which captures renters in addition to home buyers, shows 50,000 more movers per month than the benchmark new and existing home sales data, suggesting that growing numbers of families are relocating into rental properties.

* Hottest Retail Categories for New Movers: On average, during the year of their move, new mover households spend 52% more than non-movers on home décor and furnishings. In the year following the move, they continued to spend 16% more on this category than non-movers.

* Demographics: When compared with a database of non-movers, new movers are notably younger, more likely to be single and more likely to earn between $100,000 and $199,000 annually.

“Relocation is a bellwether for retail activity and it will be a critical economic variable to monitor throughout 2009,” said Donald P. Hinman, Senior Vice President, Product and Data Performance, Epsilon. “Recent data citing a slight increase in existing home sales, along with the trends we’re seeing in rental volume suggest that we may be nearing a turning point in the cycle. We will continue to track and report this data quarterly throughout the year ahead.”

To download report CLICK on link below:
http://www.epsilon.com/pr/newmoversresearch>