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.
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.
Citation:
Esri. (2012). Improving retail Performance With Location Analytics [Data File].
Retrieved from file:///Users/rebeccahuteson/Downloads/ESRI-improving-retail-performance.pdf
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%)
ReplyDeleteThis 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.
ReplyDeleteThis is a fascinating use of GIS. I wonder what would make companies decide to use GIS to analyze markets instead of traditional methods.
ReplyDelete