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Real Estate Analysis
Location is one of the most important factors influencing the
sales performance of a retail business. To improve real estate decisions,
Quantitative Analysis (QA) offers a range of analytical services,
including site models, site sales forecasts, market potential analyses
and cannibalization studies.
Site Models
A site forecasting
model can
improve the accuracy of sales forecasts. Through comprehensive
analysis of your current locations and trade area data such as retail
businesses, daytime population, demographics, shopping centers and
competition, a model identifies and quantifies the top sales
drivers. With knowledge of the top factors impacting sales, better
site decisions are made immediately. By statistically weighting
the factors influencing sales, the model formula provides objective,
reliable sales forecasts for future sites.
In short, site models learn from current locations to
forecast sales of new locations. With
this powerful site evaluation tool, you can achieve higher sales from your new
sites.
Site Sales Forecasts
If
potential sites have already been identified, a site sales forecast is a
valuable tool for choosing the most profitable sites from among the options. Trade area and other data is extracted for
each site,
which is benchmarked against current locations. A sales forecast
is provided that balances
the site's strengths and weaknesses.
In
summary, a
site forecast provides a comprehensive assessment of site strengths and weaknesses on
variables that impact sales the most.
Market Potential Analyses
If sites
are not yet identified, a model can help identify areas with high sales
potential as a first step in site selection. In a market analysis,
data for hundreds to thousands of geographies is
analyzed to identify areas with the greatest strengths and fewest
weaknesses. The final areas identified are ranked and mapped in order of sales potential,
providing a roadmap to the best opportunities.
Market
analysis maps highlight all areas with high sales potential, which
focuses the site selection process, improves market planning, and ensures no high potential areas are
inadvertently overlooked.
Cannibalization Studies
While
there
are many benefits of opening a new location in close proximity to a
current location, potential cannibalization of sales at existing
locations is an issue that must be understood and assessed.
QA
offers many analytical solutions for cannibalization studies, ranging
from customer modeling to trade area analysis incorporating physical
barriers.
The
analysis provides a forecast of cannibalization of existing
locations, which improves decision-making.
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