SiteSeer is a powerful analytics platform used by brokers, shopping center developers, retailers, franchise companies, and multi-site chain businesses in many different industries. We’re highlighting how different types of businesses can leverage SiteSeer to make intelligent site selection decisions and gain valuable insights about their operations.
Read our other Industry Spotlights on Hotels and Fast Casual Restaurants.
Changing Consumer Preferences, Technology, and More: the Grocery Retail Industry is Constantly Adapting
Over the last several years, we’ve all seen the impact of inflation, technology, and staffing shortages on every industry, and the grocery industry is no different. The COVID-19 pandemic fundamentally altered the way consumers shop for their household staples, driving a shift toward online ordering and curbside pickup. Traditional grocery stores were forced to adapt quickly or risk losing market share. Supply chain challenges and rising food prices have placed further pressure on the profitability of grocery chains of all sizes.
From a growth perspective, high commercial real estate and building costs plus rising interest rates have made for a difficult environment for small and mid-sized operators looking to grow. Their larger counterparts might have the resources to plan their national expansion—ALDI will open nearly 800 new U.S. stores over the next five years—but chains big and small are doing things like renovating existing stores and testing out small-format stores in urban markets.
Of course, the impending merger of two supermarket powerhouses, Kroger and Albertsons, is on everyone’s minds right now. If it gets the green light from the Federal Trade Commission, it could widen the gap between the giants and the smaller players.
Some grocery retailers are reevaluating their store portfolios—like Stop & Shop, which is closing 32 underperforming grocery stores in 2024 (while still continuing to build new stores and remodel existing one). Others are cautiously expanding, like Chedraui, H-E-B, and Grocery Outlet Bargain Market. One thing is certain: careful market analysis is critical for all grocery chains making strategic business decisions.
SiteSeer Tools Support Grocery Chains Analyzing Markets and Planning Their Expansion
As grocery chains navigate these complexities and plan their growth, SiteSeer is here to help. Our site selection software enables store owners, real estate professionals, analysts and others gain valuable insights and make informed decisions that align with their operational goals and market realities.
Here’s a look at a few of SiteSeer Pro’s features and tools for grocery chains:
✅Model Builder
One of SiteSeer’s most popular tools is Model Builder, our “DIY” tool that allows users to screen sites based on the criteria that matter to them. Grocery chains can input the key performance indicators (KPIs) that are most important for their chain and analyze locations to see how well they align with that success profile. The outputs of that analysis are 1) a Hot Spot color-coded map, which shades the hottest (most viable) areas on a map and 2) a comprehensive Site Scorecard that grades a location based on how closely it matches the chain’s KPIs. Model Builder simplifies the complex process of site selection, making it easier to identify the best locations for new grocery store openings.
✅Analog Model
In SiteSeer, grocery chains can run an Analog Model to identify which existing store or stores are most similar to a potential new location and view those stores’ historic sales performance. Short of the ability to carefully forecast a new location’s sales, this is an excellent way for a grocery chain to get a sense of a new location’s potential sales volume. If a potential location is similar to one of the grocery chain’s best stores, this step encourages further analysis. On the other hand, if the location is similar to a struggling store, it’s something to consider too. Are there other factors that could make that location worth continuing to evaluate? Or should it be cut from the list?
✅White Space Tool
Set to launch soon, SiteSeer’s White Space tool helps users determine the capacity for growth of their chain in a market. White Space harnesses the power of machine learning by analyzing a grocery chain’s actual data—including customer shopping habits and store performance—as well as other data about the demographics, population, foot traffic/movement, and more in a trade area to identify gaps in a market and infill opportunities. This tool helps chains considering entry into new regions or looking to optimize their existing footprints and make informed capital planning decisions. White Space is in use by select SiteSeer subscribers and will be available to all SiteSeer users very soon.
Third-Party Data Enhances Grocery Site Analysis
SiteSeer makes analyzing potential new locations simple for smaller and regional grocery chains that might not extensive internal data and access to third-party data as larger grocery chains do. Cell phone data, for
example, provides insights into a chain’s customers and where they live and work. Grocery chains can learn about the quantity and types of visitors that frequent their stores, their shopping behaviors, the other types of retailers they visit, and much more.
By understanding where potential customers are coming from and how they move within a given area, grocery retailers can make strategic location decisions that align with real consumer behavior.
Making Data-Informed Decisions
SiteSeer helps grocery chains streamline their site selection processes. The tool is powerful and easy to use, allowing chains to focus their efforts and save time by performing deeper analysis on only the most promising locations. With access to third-party data, grocery retailers without extensive customer data of their own can still reduce their risk and make the best site decisions.
As the grocery industry continues to confront a changing consumer landscape, it’s clear that location decisions must leverage advanced site selection technology. SiteSeer is a powerful platform created by a team with unrivaled grocery retail research experience. Our leadership has deep experience in grocery retail, and two of our principals worked in site location research and market analysis for one of the nation’s largest grocery store chains. In addition, our parent company, ROIC analytics, has completed thousands of market and site studies for grocery locations over the past 30 years for grocery chains across the country.
With the right tools at your disposal, you can ensure your grocery chain thrives in 2024 and beyond. Want to learn more about SiteSeer and our tools for grocery store chains? Contact us for a demo today.
