Retail Site Selection with Decision Analytics

Decision Analytics for Retail Site Selection

The selection of a suitable location for a retail store is a critical decision that directly affects customer satisfaction and profitability, particularly in the face of evolving market conditions and intense competition. It is important to recognize that selecting a retail site is a significant long-term investment, and reversing such decisions can be both challenging and expensive. Therefore, it is imperative to meticulously follow a well-defined procedure when determining the ideal location for a retail shop in order to maintain a competitive edge.

Solutions for Selecting the Best Retail Site

Retail site selection is a complicated problem with a multi-criteria decision-making structure. Analytical modelling can be used to model such a choice. The objective of analytics is to determine the factors for choosing a retail store site in order to provide the best possible location for a retail business, utilizing data and insights.

Predictive Analytical Process

An AI-based recommendation system predicts the best-suited property for a retail business.

Location

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.

User Story

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.

Target customers

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.

User Story

• 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.

Nearby businesses

Nearby businesses

Retailers can use these sample analytics dashboards to learn about surrounding businesses and assess market competition and traffic generated by nearby retailers.

User Story

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.

Why XenonStack?

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.