Many small businesses rely on their “gut” when determining new site locations, the new site just “feels right”. Or sometimes, you may use a “me too” approach and place new sites near competition that you have determined has similar characteristics to your desired customer base. While these approaches can satisfy the needs of a small emerging business, they can’t sustain the type of growth that many companies experience. It’s not difficult to place sites in a city you have lived in for many years, but what happens when you start to branch out into other, more unfamiliar markets. These strategies can be risky and won’t afford the desired optimal growth potential.
Real estate solutions consist of detailed analysis of existing site’s demographic data and competitive influences, creation of full-featured site models and proformas, and geographic analysis of demographic data to determine optimal site placement to achieve financial performance goals.
Developed site location proforma model for 35-store retail chain including:
- Demographic analysis of existing locations
- New store growth modeling
- Mature sales forecasting
- Financial proforma
Identified and analyzed 300 potential sites for emerging retailer leading to prioritized development list
Provided detailed competitive analysis for retailer including:
- Financial information
- Existing store locations
- Competitor target demographics
- Key metrics and recent news
- Potential future growth areas
Researched and analyzed specific markets for large manufacturer including current retail locacations, possible additional forcus areas and demographics.
Existing Site Analysis
ML Group can provide a full analysis of demographic data for existing locations to develop a site selection model that best represents your existing store’s performance characteristics as they relate to available demographic data. We can provide detail customer segment analysis to help identify the lifestyle characteristics of your existing customer base. In addition, we can create a demographic-based existing store performance model to identify potential under-performing locations.
Demographic analysis of your existing customer base can also help to provide a more targeted marketing model to ensure that money spent on marketing has the highest potential for success in reaching your desired customers.
Site Selection Model
Utilizing the existing location analysis, ML Group can develop a proforma analysis model to be used in site selection for future locations. The model will provide detailed analysis of demographic data and forecasted financial performance metrics for the site selection process. We can also perform detailed competitive analysis with relation to demographic characteristics and site proliferation.
ML Group can provide detailed analysis of geographic areas to determine optimal site placement to maximize sales potential and return on investment. Site selection analysis can help with both new market penetration as well as existing market backfill.
ML Group can provide detailed analysis about your competitors, such as:
- Location mapping
- Demographic analysis of their target customers
- Financial performance (where available)
- Sales performance impact from competitors