Monday, September 8, 2014

Finding Success in a Soft Economy

For retail businesses to be successful, it is important for them to understand location information.  Businesses need to understand their markets needs. They need to understand the different dynamics of different locations in order to be successful.

ArcGIS Business Analyst allows retailers to analyze the market of certain locations. Markets are changing and retailers are finding it harder to succeed. The analyst allows the business to see patterns of successful businesses and copy them.
Markets are changing due to the declining economy. Young adults, however, who aren’t effected by real estate, retirement, and investment markets, continue to spend at the same level. ArcGIS Business can analyze sale records and the customer base, giving retailers information about where to locate businesses and what types of merchandise to sell.
United Properties, which owns shopping centers in the Midwest, decided it needed to use GIS data to give its leasers information about the market so they could succeed. They chose Esri ArcGIS server, ArcGIS Mapping for Sharepoint, and the business analyst online API. These tools create interactive maps that report demographic data, helping them find the right location. Users can create reports comparing the retail value of different locations. 

 Nike licensed GIS software to understand where the market for their shoes was. They also use it to find where shoes from their Reuse a Shoe program should be distributed. GIS maps save time because one can be made, and it can be applied to many different retailers.
When the tourist town of Hershey, Pennsylvania began experiencing a downturn, a GIS consulting firm was called. They found that highway systems were directing tourists away from downtown Hershey. They decided they needed to revitalize the downtown area. They used the Huff gravity model in the Business Analyst to figure out if people would be willing to drive far to get downtown. Based on the Huff model, they created a design to fit the market.
Esri Business Analyst Online helped real estate owners figure out what type of restaurant would be most successful in a recently closed barbeque restaurant. The local market was mapped out on the business analyst. The area fit the demographic profile that most Old Spaghetti Factory restaurants typically served.
The success of the shopping centers owned by Evans and Avant can be attributed to the market research they have done. They use Esri Business Analyst Software so their clients choose the best locations for their businesses. Business analyst characterizes neighborhoods so retailers understand their potential markets.
Esri. (2012). Improving retail Performance With Location Analytics [Data File]. Retrieved from file:///Users/rebeccahuteson/Downloads/ESRI-improving-retail-performance.pdf


  1. Interesting article and use of GIS. I'd like to see a legend that shows a percentage that corresponds with each colored tower on the second image. (Something along the lines of Green = 0% - 50%, Red = 75% - 100%)

  2. This sort of information could be very helpful to an up and coming business that wants to expand or establish itself without wasting time or money on locations that are less likely to be successful.

  3. This is a fascinating use of GIS. I wonder what would make companies decide to use GIS to analyze markets instead of traditional methods.