National brands entering Cincinnati en masse

Busdieker, assistant professor of marketing in UC’s Carl H. Lindner College of Business, spoke extensively with the magazine on the recent uptick in regional and national businesses setting up shop in greater Cincinnati. From fast-casual titans like Sweetgreen and Shake Shack to regional favorites Wawa and Buc-ee’s, Cincinnati is becoming a hub for business expansion. And Busdieker says it can be great for local shoppers.

“Added competition can drive down costs as existing retailers step up their game to retain market share,” Busdieker told Realm. “There is also added variety and potentially new-to-market products that were previously available in limited channels, making it more convenient for local consumers.”

Even as recession fears increase across the country, companies find success by tapping into affordability and brand recognition to draw in midwestern customers. 

“It’s really an affordable luxury in a time when consumers feel like they don’t have as much money to spend,” said Busdieker. “Both Wawa and Buc-ee’s tap into that contact with fuel. For some reason, there’s a psychological positive association with fuel and saving money. Then you go inside Buc-ee’s and there’s merchandise, it’s fun, people are excited, they’ve got T-shirts, and they’re known for their jerky. It’s like a big experience to go in there at a time when people feel like, ‘I can’t do some other things, so I’ll go do this.’”

Cincinnati’s population growth is also putting it on the map for businesses looking to expand. Busdieker says the boom in shopping options benefits the companies and the locations they serve. “It builds a sense of excitement for a town that can attract incremental retailers from a variety of categories,” she said. “As more customers come to shop from increasing distances, new retailers see the value in entering a market where foot traffic and interest is growing.”

According to Realm, recent population growth is a major factor drawing businesses to the Cincinnati area. Realm says suburbs and neighborhoods close to schools offer the most appeal to businesses looking to expand into the midwest. 

“The suburbs have become much more densely populated,” said Busdieker about Liberty Township. “There’s a lot of expendable income there.”

And she says students are drawn to retailers with great service and low costs. “When brands come into university areas, they’re going to very much look at what types of products will get store traffic and visits and that students can afford,” Busdieker added. “If their prices are good, their food is great, and the people are nice, when they’ve got those three things and it’s still within their budget, students will flock to it.”

Another major retailer joining the fray: Publix. The grocery chain has long steered clear of the Midwest and its loyalty to Kroger, but Busdieker says a shift in the business landscape is creating opportunities for competition. 

“It used to be that you would never compete in the backyard of someone’s corporate offices, but the shopping experience is shifting so much these days,” Busdieker said. “There are so many retailers that are actually thriving and dividing those sales, Publix feels like they’ve got an opportunity to come in and peel off some of that share in Cincinnati.”

Read the full story on Realm. 

Featured image at top of woman and child in grocery isle. Photo/iStock/petrenkod