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Retail location optimization

The location is critical for a retail store to attract potential customers and generate good revenue. With almost 20 year experience in geographical location analysis, we can maximize our clients' revenue by searching the optimal location for a retail store. This can be completed by utilizing the information of demography, census, land use, municipal infrastructure, etc. Comprehensive models are usually developed for the specific retailers. The retail can be diversified industries, such as grocery store, spa, clinic, auto shop, restaurant, music school, etc. We can provide the following three main service to our clients:

 

Search optimal retail site

We identify current retail store locations of similar business, and explore current spatial pattern of this industry in the focus area. The following "where" questions are explored in our work:

(1) What is the target market?
      The characteristics of targeted customers, such as gender, age, education level, income level, race.

(2) Where are the potential customers?
      The geographical locations of the target customers and market size.

(3) Where are the competitors?
      The geographical locations of the competitors and their influence areas.

(4) Where is the best location for the new store?
      The location that can attract more customers and generate best profit.

 

If there is available of client's historical data of their retail stores, we can further explore the possible capacity of the new store and help our clients to answer following questions:

(1) How much geographical area the retail store can influence?

(2) What is the optimal size of the potential store?

 

Optimize retail network

For the clients who have a retail network already, we can help to identify the poorly located stores, and the potential locations for new stores.

(1) How could the close of a poor performing store affect the neighboring stores, including competitors?
      Such as, will the neighboring store's revenue increase, and how much the revenue will be increased?

(2) Where has the potential to set up a new store?
      We will analyze what size should the new store be and how will it affect the neighboring stores.

 

Appraisal an existing store

If you found a retail store for sale, but not sure if it is worth to buy, you can come to us, and Greenware Services can help you evaluate the location and the potential revenue the store can generate in the future.

(1) By analyzing the neighboring competitors, we can evaluate preference of the location

(2) By identifying the potential market/customer as well as the store's historical revenue, we can estimate the possible annual revenue of the focus store, and determine if current store is properly sized.

 

Example of location optimization --- Cafe shop planning in Mississauga Ontario

By analyzing the demographic information and land use maps, we explored the locations of cafe shops in Missisauga Ontario. The optimal locations of new cafe shops are recommended.