Decision Analytics for Retail Site Selection
Retail store site selection is a strategic decision regarding customer satisfaction and profitability to changing market conditions and intense competition. The decision to locate a retail location is a long-term investment, and we all know how difficult and costly it is to reverse long-term investment decisions. As a result, selecting a retail shop location is a procedure that must be carefully followed to stay ahead of the competition.
Solutions for Selecting the Best Retail Site
Retail site selection is a complicated problem with a multi-criteria decision-making structure. Analytical modeling can be used to model such a choice. The goal of analytics is to identify the criteria for selecting a retail store site to offer the optimal location for a retail business based on data and insights.
Predictive Analytical Process
An AI-based recommendation system predicts the best-suited property for a retail business.
With these Sample analytical dashboards, Retailers can see how rates differ depending on the neighboring location. They can look at how the number of non-retail businesses influences prices. The dashboard also illustrates how the distance determines the rate to the employment center.
If a buyer wants a property with access to two radial routes(highway), then:
- Prices are falling as the number of non-retail stores grows. Because non-retail stores are open, there aren't enough target customers and marketplaces, and these locations aren't suitable for business establishments. As a result, prices are falling as non-retail stores grow.
- Prices are increasing with the increase in distance of employment centers. As a result, businesses surrounding these sites don't see a lot of foot traffic. Because job centers are places where individuals look for work, thus it demonstrates that these individuals are not financially secure.
Using these sample analytics dashboards, Retailers may discover more about their customers by integrating demographics to behavioral and lifestyle factors. Demographic considerations can define market categories that the store will target.
- The dashboard can locate properties near public buildings and the central business center.
- 94.35 percent of all properties are near the central business district area. This signifies that most properties have commercial space and offices and are located in a city's commercial and business center. As a result, we can provide a variety of properties in areas where there is expected to be a high volume of foot traffic for the retail industry.
Near public buildings, 91.27 percent of the properties are located. This means that if a customer purchased the property for a retail store, they would get a lot of foot traffic.
Retailers can use these sample analytics dashboards to learn about surrounding businesses and assess market competition and traffic generated by nearby retailers.
The dashboard displays neighboring public services and businesses such as a bus stop, a park, a hotel, a bank, and so on. It also displays the number of retail businesses in the area.
- Suppose a client wants the property and their target consumer primarily travels by bus. In that case, we can easily offer them properties because 36.84 percent of the properties are located near a bus stop, followed by a boardwalk.
- In 40.75 percent of all properties, there are retail stores/shops. As a result, these locations face stiff competition when opening new stores.
End Customer Value
Because, among other things, location is vital in the retailing industry. Users can compare different retail sites and select the one that best meets their requirements. They can also examine cost-effectiveness, target consumer access, site connectivity, traffic flow, street visibility, plot size, and the population threshold of the community.
XenonStack gives recommendations on choosing the best possible site, considering all factors such as the target client, surrounding businesses, and connectivity to essential amenities, and providing the retail store located at the lowest feasible price. Click here to talk with our expert.