Where can we expand our store network? Which locations will attract more customers? What is the sales potential for our new location?
Your existing stores and customers tell a detailed story of success and opportunity for your retail network. Tap into your sales data to learn what drives success in the market and apply the learnings in the search for new location opportunities. Base your important growth decisions on sound data analysis techniques.
Customer postal code data collected at your locations is extremely valuable in telling you what characteristics drive success. You will learn where your customers live and how far they travel to your stores. You will learn the profiles of your best customers and estimate the demand for your products in every neighbourhood. You will know your market share from the national level down to the neighbourhood level.
In addition, with data per store, you will know the trade areas for all of your locations and how your stores interact with each other. You will learn what store location types impact your market penetration and which customer demographic groups drive your success.
The valuable insights gained from analyzing your customer data can not only be used to determine why locations over perform or under perform, they will form the foundation for planning your expansion with new locations.
Once you have gained insight on the characteristics that drive success with your existing stores, searching for new location opportunities is a matter of searching for areas with high demand where you currently have low sales. Using the right tools, you can calculate the opportunity size in every market and then drill down into those markets to identify the top areas to target. The top new locations are the ones that tap customer demand without cannibalizing existing locations. Instead of waiting for opportunities to find you, search out the best ones yourself using your own valuable customer data.
By analyzing your customer sales data, not only will you be able to search out the best new location opportunities but you will have the capability to quantify the sales of new locations. You will have the data to back up new location sales estimates: data on the performance of existing similar locations, trade area sizes, exiting store sales in the area, and most importantly, you will be able to quantify the demand and sales opportunity in the region surrounding the new location. Base your location decision on sound data analysis and have confidence that you are moving in the right direction.
Talk to us and we’ll help you analyze your sales data and provide the tools and support to evaluate locations.