Should I expand my stores to other cities in 2022?

Retail store expansion strategies are one of the most fundamental issues for growing retailers. Opening a new store can be a game changer if you get the location right, or your new store could be doomed to failure if the location doesn’t attract enough customers.

Thursday, March 24, 2022

In addition to geographical factors, such as transportation accessibility and real estate prices, demographic factors and mobility patterns in the areas of interest play a key role in decision making. These data on population, purchasing power and consumption habits are what generate an optimal expansion strategy.

And it seems that the end of the pandemic is encouraging the retail sector to return to the upward path it was on before 2020. According to the NRF (Natural Retail Federation), the U.S. retail sector announced that new store openings in 2021 were double the number of stores closed in the same period.

Also Read: “Footfall analytics: Costco Wholesale Vs. Sam’s Club

Organizations are relying on the efficient use of big data and location analytics as the backbone of all their processes and decision making, reducing the risks of new investments associated with expansion plans and new store openings.

The use of big data management techniques simplifies the analysis of expansion managers, since it is possible to reduce hundreds of potential locations to a limited group with real sales potential, defined by the model.

Today, thanks to Big Data, store site selection is much more efficient and less risky. Read the complete article here



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