The holy grail of store location planning

Nov 25th 2019

Where to put new stores is a question that can be challenging and quite daunting for many retailers. There being very little science currently in location planning, many brands rely heavily upon property consultants or “local brokers” to go after micro-markets and locations within the micro-markets.

People in store expansion roles talk about ‘gut feel’, ‘luck’ and ‘good sense’. Some others make decisions based on where competitors locate their stores, assuming that what works for another brand should also work for them!

To rush headlong into locations without enough data to back you up could be disastrous. A series of bad decisions could wreck a company and blow to bits an otherwise healthy-looking P&L statement.

    Tony Dimasi 1

    “While malls are expensive choices, they do guarantee footfall. There are different types of malls: neighbourhood malls, CBD malls and an increasingly common variety called the ‘Weekend malls’! This variety has its peak footfall usually only on the weekend.”

    In fact, retail real estate is the most prime commercial asset in any micro-market that is worth top dollar in rentals per square foot. Yet, many a brand add stores without having any real idea of the size of the market or its potential.

    A safe way to play the expansion game perhaps is to hedge the risk by opening a store in a successful mall. Mall options though don’t come cheap. The efficiency of space could be very low, which means that you end up with only half the space you actually paid for.

    A mall also constricts and controls every aspect of store location, branding, promotion and to top it all malls charge hefty rentals, exorbitant CAM charges, power back-up, and HVAC fees.

    While malls are expensive choices, they do guarantee footfall. There are different types of malls: neighbourhood malls, CBD malls and an increasingly common variety called the ‘Weekend malls’! This variety has its peak footfall usually only on the weekend.

    With annual sales forecasts being a blend of same-store sales and new store sales, the pressure is always on the Real Estate team to deliver locations that are winners. Unfortunately, some business development folks place bets on locations that can’t even put up a fight! Add to that the costs of fit-outs, salaries, marketing, etc. and retailers may be locked-in with a loss-making store that helps with branding building, but adds little to the bottom-line.

    The onslaught of online retail hasn’t helped much either. Omni-channel retail maybe the flavour of the season, but there is a real risk that physical stores may soon become only trial rooms for online sales. With shoppers using showrooms to touch & feel the product before booking the same online.

    This only makes the usage of data essential while planning future stores. The use of big data is the single biggest differentiator between fact-based decisions and everything else. This is why there is an increasing shift to blend the right big data with location planning expertise to build a pipeline of store locations. Using a synthesis of the right data sets such as demographics, trade area catchments, drive times, competitor locations, prosperity indices, device data, and generator patterns, an expansion manager can do away with subjectivity, biases, differing opinions and vested interests.

    This is where new-age tools such as GapMaps help. GapMaps is a platform that provides data & insights to assist retail & omnichannel businesses to establish & refine store network strategies. Brands are empowered with a breadth and depth of datasets and a simple user interface without any of the complications of regular GIS tools.

    This enables users to set and refine network strategies and make fact-based decisions regarding growth opportunities. The platform is widely used by a wide variety of sectors ranging from large format retailers, QSR chains, apparel retailers, cafes, fuel retailers, childcare companies to fitness brands and even industry associations.

    Posted by GapMaps
    Cafe

    Please Subscribe To Download

    Thanks for requesting a copy of our 2021 Annual Network Report providing you with the latest insights on the competitive landscape in the Café sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    Annual Network Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

     

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Tyre bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2021 Annual Network Report providing you with the latest insights on the competitive landscape in the Auto Tyres & Servicing sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    Annual Network Report Downloads

    You have Successfully Subscribed!

    Health & Fitness Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2021 Annual Network Report providing you with the latest insights on the competitive landscape in the Health & Fitness sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    Annual Network Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2021 Annual Network Report providing you with the latest insights on the competitive landscape in the Fast Food & QSR sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    Annual Network Report Downloads

    You have Successfully Subscribed!

    Petrol Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2021 Annual Network Report providing you with the latest insights on the competitive landscape in the Petrol Retail sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    Annual Network Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

     

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Cafe

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 AU Mid Year Network Report providing you with the latest insights on the competitive landscape in the Café sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Tyre bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 AU Mid Year Network Report providing you with the latest insights on the competitive landscape in the Auto Tyres & Servicing sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Health & Fitness Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Mid Year Network Report providing you with the latest insights on the competitive landscape in the Health & Fitness sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Mid Year Network Report providing you with the latest insights on the competitive landscape in the Fast Food & QSR sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Petrol Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Mid Year Network Report providing you with the latest insights on the competitive landscape in the Petrol Retail sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Childcare Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 AU Mid Year Network Report providing you with the latest insights on the competitive landscape in the Childcare sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 AU Mid Year Network Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Mid Year Network Report providing you with the latest insights on the competitive landscape in the Fast Food & QSR sector, which brands are seeing the highest growth and in what locations across New Zealand. Please provide your details below to get a copy of your free report. 

    2022 NZ Mid Year Report Sectors

    You have Successfully Subscribed!

    Health & Fitness Bloom

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Mid Year Network Report providing you with the latest insights on the competitive landscape in the Health & Fitness sector, which brands are seeing the highest growth and in what locations across New Zealand. Please provide your details below to get a copy of your free report. 

    2022 NZ Mid Year Report Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2023 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Cafe

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Annual Network Report providing you with the latest insights on the competitive landscape in the Café sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Annual Network Report providing you with the latest insights on the competitive landscape in the Fast Food & QSR sector, which brands are seeing the highest growth and in what locations across Australia. Please provide your details below to get a copy of your free report. 

    2022 Annual Network Report Download Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Snapshot Annual Network Report providing you with the latest insights on the competitive landscape in the Cafe & Beverage sector. Please provide your details below to get a copy of your free report. 

    2022 Annual Network Report Download Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Snapshot Annual Network Report providing you with the latest insights on the competitive landscape in the Health & Fitness sector. Please provide your details below to get a copy of your free report. 

    2022 Annual Network Report Download Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Snapshot Annual Network Report providing you with the latest insights on the competitive landscape in the childcare sector. Please provide your details below to get a copy of your free report. 

    2022 Annual Network Report Download Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our 2022 Snapshot Annual Network Report providing you with the latest insights on the competitive landscape in the Auto, Tyre and Servicing sector. Please provide your details below to get a copy of your free report. 

    2022 Annual Network Report Download Sectors

    You have Successfully Subscribed!

    Please Subscribe To Download

     

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2022 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our Monthly Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    2023 Monthly Fast Food & QSR Network Report Downlo

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Q1 Health & Fitness Sector Network Report providing you with the latest insights on the competitive landscape in the Health & Fitness sector. Please provide your details below to get a copy of your free report. 

    You have Successfully Subscribed!

    Please Subscribe To Download

    Please Subscribe To Download

    Thanks for requesting a copy of our Bi-Annual Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Saudi Arabia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our Bi-Annual Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Indonesia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our Bi-Annual Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in India to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our Bi-Annual Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in New Zealand to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    You have Successfully Subscribed!

    Please Subscribe To Download

     

    To receive an email with your report and subscribe to future reports, other news and insights, kindly provide your details in the form below. Thank you. 

    You have Successfully Subscribed!

    Please Subscribe To Download

    To receive an email with your report and subscribe to future reports, other news and insights, kindly provide your details in the form below. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    To receive an email with your report and subscribe to future reports, kindly provide your details in the form below. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Thanks for requesting a copy of our Bi-Annual Network Report providing you with the latest insights on store openings and closures we've observed in the Fast Food & QSR sector across all major brands in Australia to keep you informed on the changing competitive landscape. Please submit your details below to download the report.

    You have Successfully Subscribed!

    Please Subscribe To Download

    To receive an email with your report and subscribe to future reports, other news and insights, kindly provide your details in the form below. Thank you. 

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    2023 Annual Report Downloads

    You have Successfully Subscribed!

    Please Subscribe To Download

    Kindly provide your details in the form below to receive an email with your report and subscribe to future reports, other news and insights. Thank you.

    2023 Annual Report Downloads

    You have Successfully Subscribed!