Location is everything for chain retailers. In addition to selling a quality product, the success of a chain hinges on a smart expansion strategy that utilizes a wealth of location and business data to determine market viability. Factors such as retaining sales at existing locations and proximity to competitors are only a sampling of the considerations that decision-makers face when evaluating the sales potential for a new brick-and-mortar unit.
Organizationally, one problem that often plagues commercial chains is the prevalence of multiple, often inconsistent, and potentially competing, sales forecasting approaches. Estimates from operations, franchisee and real estate divisions within the company, could all bring conflicting metrics to the table, clouding the true, fact-based potential a new for a unit.
The challenge, therefore, is for retailers to know how to leverage the wealth of location and business data they have at their disposal. An arsenal of information, both within the company and outside of the corporate structure, can be used to help drive expansion decisions and give retailers a leg up on the competition.
Quality location analysis can help beat retail rivals to the punch
Chain stores need to incorporate potentially subtle insights from the demographic characteristics of a market to capitalize on new deployment opportunities faster than the competition. While a confluence of similar retail establishments might superficially indicate an “obvious” market for a given retail concept, there could be data pertaining to a less developed location – with a suitable combination of demography and population in a retail-starved neighborhood. This opportunity could represent a potential “diamond in the rough” for retailers before their competitors get a clue.
The essential ingredients for success boil down to a combination of expert consultants that can provide an unbiased perspective on a market, along with clear and concise data from multiple sources – all deployed on the most advanced software. With these tools, the user can power actionable insights and smarter decisions for accurate site location.
For decades, the Pitney Bowes Strategy and Analytics division has provided innovative research solutions and developed sophisticated sales forecasting models for hundreds of retailers. To learn more about our solutions, visit us at booth N1351 at ICSC RECon, the global convention for the shopping center industry, at the Las Vegas Convention Center from May 22-25. Schedule a meeting or demo with us today.