USE DATA TO DRIVE PROPERTY DECISIONS
GUESSWORK TO DATA-DRIVEN NETWORK OPTIMISATION
Investing in a new retail location always comes with some big questions. Will increased profits make up for the cost of buying/renting and fitting out a new store? Do you have enough of your target audience in the new area? What are your competitors doing? Will a new location bring in new customers, or will they shift from your other stores?
Working with Datamine, we can help you perform location analytics to help answer those burning questions and help you make informed decisions about expanding or contracting your network of retail stores. Location analytics turns extensive data into clear, usable insights to help you make the right choices about opening new sites, closing underperforming stores, or altering existing locations.
The more you know can aid in lowering risk, and increase better decision-making. Here’s how it works:
Reducing investment risk
Property – bought or leased – is one of the biggest expenses for most businesses. Opening a new retail store also comes with significant design, fit-out, marketing and staffing costs. If a new site is unsuccessful, much of that investment is lost – and most businesses aren’t prepared to write off such a significant chunk of change.
Most large businesses have dedicated property teams for that reason. Their role is scoping out potential new locations, assessing the performance of existing sites, and looking for opportunities to improve. Our data-driven, informative approach is designed to support those teams, helping them minimise risk and make decisions with confidence. Whether your team is looking for expansion opportunities or creating a broader retail strategy, a deeper understanding is always a good thing.
Like all our data solutions, we tailor location analytics to fit your business and insight needs. We start by looking at what you want to achieve – future planning or current expansion, building or buying, one site or multiple locations, optimising your network or focusing on a specific area. From there, we work with your team to clarify your expectations and requirements around costs, risk factors, profitability and measuring success.
Depending on your needs, we’ll look at customer turnover, cannibalisation, regional differences and competitor information. We draw on your customer and sales data, pulling in information from your Customer Relationship Management platform and business management platforms, look at store performance, demographics, and location data, and find out everything we can about your competitors and your potential new location. Ultra-specific data points like parking, neighbouring businesses, the feel of the area, foot traffic and distance from your current location are all relevant, helping pinpoint potential positives or negatives early in the process.
It’s about leveraging our extensive data network to build a full picture of your current network and potential opportunities.
Insights you can use
Because we work with a wide range of businesses, we don’t present our location analytics data in one set way. Instead, your insights are delivered in the format that best fits your team and your business.
Here’s what that can look like:
In its simplest form, location analytics data is presented to your property team as a report with recommendations for expanding or contracting your network. What’s the best place to open a new store? Should you close site A and upgrade site B? How long will it be before you can expect a profit from a new site?
Our Site Spotter tool presents location data as an interactive, easy-to-read dashboard. The tool includes insights into customer demographics and turnover at existing and prospective sites, with scroll-over data points and clear insights. It’s designed to give you an overview of potential expansion sites and crossover between existing stores. It can also be a presentation tool for other stakeholders in your business.
Metrics and projections
We can also draw out key metrics from our data and present these – whether that means projected sales over time, customer numbers, or other measures of success.
If your business has an IT or analytics team onboard, we can provide detailed data points that can be fed into your internal modelling or forecasting programmes. Your team can use those points alongside internal data to drive further analysis and make hyper-focused, accurate decisions as you optimise your network.
Case Study: Torpedo7's optimisation and growth opportunities
Torpedo7 partnered with Datamine to enhance their store location network. Datamine used Torpedo7's data, along with detailed customer spending data and census information, to model the impact of potential stores in different regions. The result was an interactive map showcasing the expected performance of each store, including key metrics like total and predicted sales, network uplift, and cannibalisation. This strategic approach empowered Torpedo7 to identify growth opportunities, analyse areas with high potential for profitable sales, and optimise store planning. Datamine's data-driven insights have aided Torpedo7 in making informed decisions for successful future investments in their chosen market.
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optimise with confidence
Optimising your retail network isn’t just about opening new stores – it’s about truly understanding the performance of your existing sites and the potential of new locations, to ensure every part of your network is working for you. Our location analytics solution helps you do just that, boiling down extensive internal and external data into key insights delivered to suit the scope of your project. Site assessment works if you’re focusing on one or two locations, while network optimisation suits companies developing a wider retail optimisation plan.
Whatever your goals, location analytics gives you the information you need to minimise risk, maximise profitability and accelerate decision-making.
Want to reduce the risk of change to your network? Talk to a member of our team to get started.
The Datamine Guide to Demand Forecasting
Want to learn more about how your business can benefit from demand forecasting?
Download our guide to Demand Forecasting. In this guide, we’ll walk you through the questions you’ll need to ask regarding your product, stores and data quality, then offer suggestions for next steps. The goal of this guide is to give you a framework for implementing a forecasting strategy, allowing you to then choose the tool that’s best suited to your business.