If you’re a franchise organization, you know well how important it is to understand the markets into which you are expanding so you can maximize their potential and increase sales. Too often, franchise concepts come to us when they have 20 franchised locations when it would have been better to implement a consistent strategy from the start. While the shotgun approach to franchise expansion might not cause problems for a while, developing a territory plan before you sell more franchises will ensure that you don’t limit your overall capacity for growth. In other words, taking a smart approach to franchise development will allow you to sell more successful franchises in the long run.
Whether you’re launching a new retail or restaurant business or expanding your concept to open new sites, you know already that the location you choose is key to your success. But consider this stark fact: choosing the wrong location could lead to lost revenue that you never recoup and have a ripple effect across your chain—even if you have an attractive concept and a respected, established brand.
Topics: Retail Data Analysis
Building successful stores starts with choosing a great location. Your site must draw new customers and provide a better, more convenient shopping experience than your competitors. That’s where a good site selection process comes in. To do it right, you need to collect data about your current stores, competitors, and markets. With that information, you can determine the factors that drive sales and build a forecasting model to help you decide whether a site is a good choice. Models can produce highly accurate results, but they are only as good as the data that drives them. Bad or missing information = a failed forecast.
Every day, we talk with retail companies, franchise organizations, and other businesses that want to select sites that give them the best potential for profitability and success. Here’s the stark truth: most companies have room for improvement when it comes to site selection. And as we all know, hindsight is 20/20. It’s very easy to think back and wish that you knew certain things about a site when you chose it. While you should be wary of any company that promises a methodology or tool that sounds a lot like a crystal ball, there are certain things you can do to choose better sites in the future and minimize costly mistakes.
Retail site selection done right is all about using data to your advantage. If you’ve been largely successful in leasing vacant space, it probably means you have a good process in place to determine what retail and service gaps are missing in a trade area and fill those demands in your shopping center.
On the morning of November 8, 2016, pollsters seemed confident: Hillary Clinton would win the election for the next President of the United States. Of course, we all know what happened thereafter.