Finding The Perfect Location For Opening A New Store
Our retail client in the bedding sector is expanding its business internationally. Opening a new store requires careful consideration of the location to ensure success while managing costs. To help with this, we use anonymized Floating Car Data to analyze the surrounding areas. By looking at historical trends, seasonal variations, and nearby attractions, we can objectively compare different locations and make informed decisions based on spending behavior insights.
Understanding Spending Behavior:
To effectively evaluate potential locations, we consider the following information:
Total Regional Spending:
We examine the overall amount spent in the area to gauge market potential.
Transactions:
We analyze transaction data on an annual, monthly, and weekly basis to identify patterns and sales trends.
Number of Accounts:
Understanding the customer base and its growth potential is crucial for long-term success.
Average Transaction Value:
We calculate the average value per transaction to gain insights into customers' spending habits.
Yearly Changes in Spending Behavior:
By tracking annual changes in spending behavior, we can forecast future trends and adapt strategies accordingly.
Yearly Changes in Transaction Volume:
Monitoring the yearly transaction volume allows for comparison and evaluation of potential locations.
Evolution of Spending Behavior by Sector:
We identify changes in spending behavior within specific sectors to understand market dynamics.
Sector Comparison:
Comparing a sector's transaction volume against the total number of transactions provides a competitive benchmark.
Benefits of Data-driven Location Analysis:
Our approach offers several advantages for new store openings and benchmarking against competitors and existing locations:
Informed Decision-making:
By combining multiple data sources, we provide quantifiable insights for making objective choices.
Cost Reduction:
Identifying the ideal location reduces the risk of investing in less profitable areas, optimizing expenditure.
Expansion Strategy Optimization:
Our approach ensures that expansion plans align with customer spending behavior and market dynamics.
Competitive Advantage:
By comparing sector-specific transaction volumes, our clients gain a competitive edge in the market.
Selecting the right location for a new store is crucial for successful expansion. Our data-driven analysis, using anonymized Floating Car Data and spending behavior insights, allows our clients in the bedding sector to objectively evaluate different locations and make informed decisions. This approach can also be applied for benchmarking against competitors and existing store locations.
For more information on how this platform can benefit your city, feel free to reach out to Michiel Van Hove.
