Store Location Analysis
Store location analysis is to conduct a survey around the candidate site when opening a new store.Companies that develop stores, such as retailers and service companies, go through various processes at the time of planning and then decide to open a store.
Why do you need Store Location Analysis？
When opening a new store, if you decide to open a store in a vacant real estate because the rent is cheap or because it is a downtown area, you may fail. A large amount of investment is required to open a store. It is very important to analyze where to open a store in order to make a profit as soon as possible.
Point 1：Are there many people using your store there?
Check the population of the trade area (the range that can attract customers) and check the market size. It’s also important to look up your age and gender to see if it matches your store’s target audience.
Point 2：Is the location of the store easy for customers to visit?
For example, if there are many customers who come to the store on foot, and even within the same walking distance, if there are arterial roads and rivers nearby, the number of customers who actually come to the store may be smaller.
The market share of the store openings is calculated from the number of customers attracted per day, the time of congestion, the location of competing stores, and so on.
As a result of the simulation, problems may become apparent.
For example, it may be necessary to change to a store that is adapted to the new target audience.
Based on these points, it is necessary to determine whether or not the place actually leads to a visit. Area Marketing GIS allows you to make quick decisions in no time.
Example of Store Location Analysis Method
1. Market volume survey
You can easily check the number of residents within the range of each radius (eg 0.5m, 1km, 2km).
If you have a detailed age target, for example if your store is targeted at women in their 20s, you can also get the value for the female population in their 20s.
2. Check your competitors
In addition to the basic information on the candidate site, it is also important to check information on nearby stores.It’s very important to analyze not only your competitors but your own stores which may be cannibalized each other.It is possible to keep track of competing stores within the same trading area and manage that information.
3. Making a report of area characteristics
You can easily report the trade area analysis data. Since it is automatically generated with one-click, the time for creating troublesome materials is greatly reduced, and information can be shared smoothly with related parties.