Location-based analysis helps retailers to profit

Edited by the Marketingservicestalk editorial team Jun 18, 2007

A large percentage of small independent retailers close their doors in the first year, often because they are in a poor location, but site analysis offers a greater chance of success

When a multiple retailer is deciding upon a suitable location for a new outlet, a great deal of location-based analysis and reporting is carried out beforehand to ensure that the site is going to be both profitable and appropriate for that retailer.

Such is a retailer's high investment in a new outlet that they are able to allocate considerable resources and finance to ensure the right decision.

Until recently smaller retailers have been unable to afford access to this very specialised and detailed information.

Now however, retail analysis specialists Cartogen has introduced such a service, which is both effective and affordable, and is available to the smaller business anywhere in the UK.

Cartogen is headed by Stephen Kennedy whose background has been with a number of large retailers including Superdrug and Shell.

Cartogen's retail location planning service provides a combination of actual retail data and the latest geodemographic information.

The company is able to present a comprehensive view of any trading location, both in terms of commercial performance and customer profiles.

Using EuroDirect's CAMEO profiling system, Cartogen is able to give clients a clear indication of the mix of customer types within any particular catchment area, their behaviour and purchasing habits.

Cartogen is then able to give clients an accurate idea of whether a particular retail offering will be suitable for a specific location.

The usual demographic data such as age, ethnicity, family structure, employment status and housing type can be provided.

In addition, with the use of CAMEO, information on other lifestyle and behavioural aspects such as leisure activities, holiday destinations, goods currently purchased, newspapers and magazines read, television watched and internet used can all be supplied by Cartogen's analysis.

Utilising GMAP Consulting's RetailVision system, as used by the likes of Woolworths and the Post Office, Cartogen will also provide sales and mix information on retailers currently trading in a location.

This can be used to show the relative attractiveness of around 5,000 retail centres, and which categories over or under perform in particular locations.

Now for the first time small and medium retailers can have the same vital information available to them that the multiples have had for years.

This new service from Cartogen, which is expected to be of particular interest to shops, bars, cafes, restaurants, health clubs and salons and will at last allow the smaller retailer to make a much more informed decision when opening a new outlet.