Purchasing power and retail trade
In addition to Hannover's city center with the prime locations Georgstraße, Große Packhofstraße, Bahnhofstraße and Karmarschstraße, Hannover's retail location is characterized throughout the region by retail park agglomerations, shopping centers, city district locations and attractive city centers in the surrounding area.
Retail sales in the region are expected to total EUR 7.1 billion in 2023. Inflation-related dips in retail sales in 2022 could be overcome in 2023.
Purchasing power and turnover
- Purchasing power in the Hannover Region will total 31.0 billion euros in 2023. This corresponds to an average purchasing power of EUR 26,765 per inhabitant* or a purchasing power index of 101.9 in relation to the average purchasing power in Germany.
- Retail purchasing power will amount to 7.9 billion euros. The average retail purchasing power is EUR 6,851 per inhabitant* or a retail purchasing power index of 102.8 in relation to the average retail purchasing power in Germany.
- Actual retail sales are forecast at EUR 7.1 billion. This corresponds to retail sales of EUR 6,133 per inhabitant* or a retail sales index of 110.5 in relation to average retail sales in Germany.
High-turnover municipalities in the retail sector include Isernhagen, Laatzen, Burgwedel, Garbsen and the state capital Hannover. Retailers in municipalities away from the major retail locations on the main traffic routes, on the other hand, find it rather difficult to generate comparable sales.
Definition and notes
Purchasing power is defined as the total net income of the population in relation to their place of residence. In addition to net income from self-employment and employment, capital income and state transfer payments are also added to purchasing power.
This disposable income is used to cover all of a consumer's expenses such as living costs, insurance, rent and utilities, clothing and savings. The purchasing power index indicates the percentage deviation from the national average (index value = 100).
When calculating retail-relevant purchasing power , only those shares are taken into account that are available for retail expenditure, including the product groups food and beverages, clothing and shoes, household goods, personal and health care, education and entertainment as well as personal furnishings;expenditure on motor vehicles and fuels as well as services and repairs are not taken into account.
The retail purchasing power index indicates the percentage deviation of a region's retail purchasing power from the national average (index value = 100).
Retail sales reflect the actual distribution of stationary retail sales. In contrast to retail purchasing power, which is measured at the consumer's place of residence, retail sales are measured at the retail location.
The retail sales index therefore represents the percentage deviation from the average for Germany (index value = 100). Deviations above the base value indicate higher retail sales and a deviation below the base value indicates comparatively lower sales.
The retail centrality index is calculated as the ratio of potential local retail purchasing power to actual local retail sales. It is therefore a measure of the attractiveness of a city or region as a shopping destination.
An index value above 100 indicates that there is an inflow of purchasing power, i.e. more retail sales are made locally than the local population spends on retail.
An index value below 100 means that there is an outflow of purchasing power, i.e. less is being spent locally on retail sales than the local residents spend on retail.