Quick read: Site selection and retail availability

Modern Retail recently ran a story stating that retail space availability had reached its lowest point in decades.

With so much competition for so little space, what are the implications for those making real estate decisions? And, if leases are at a premium, what should be on decision-makers’ checklists to ensure they’re able to find the right sites for their concept?

Robust sales forecasting model

It’s true at any time, but it’s especially true when retail space is limited and rents are increasing: having a forecasting model that you trust separates those acting on gut feel from those making data-driven decisions.

Having a basic understanding of the demographic and psychographic characteristics of customers most likely to patronize your store is key to assessing new store deployment opportunities. If you haven’t evaluated your customer profile recently, now may be a good time. Understanding who’s visiting your location informs better sales estimates, which are vitally important when property is scarce. A robust process for modeling potential sales helps you cut through the noise and focus teams’ attention on only sites that are viable candidates for deployment.

Speed and efficiency

All too often, real estate teams have identified their preferred sites but find themselves held up by an inability to centralize the data and insights to socialize for the requisite sign off by committee. When retail availability is limited, delays mean missed opportunities. The sites you’ve identified as viable could well be viable for your key competitors.

As such, teams should lean on technology as far as possible. If utilizing a GIS platform, look for solutions with configurable reporting capabilities or the ability to share reports across departments. Having a single source of truth enables relevant stakeholders to quickly verify and approve actions, accelerating the velocity of deals, and reducing the risk of losing a viable opportunity to a competitor.

Learn about how location analytics can empower smarter site selection decisions here.