For Precisely PlaceIQ, it is common for to utilize the data to assist clients with new store openings. Our methodology includes measuring a new store’s opening performance by answering questions such as: “What is the rate of visitation since opening?,” “How have visitation trends changed over time,?” and “What is the share of visits compared to nearby stores?.” After our clients analyze a store’s initial performance, our data and dashboards enable them to help ensure continued success with our audiences to target relevant individuals in the surrounding area. Using Place Intelligence Metrics, we begin the first step of this process by analyzing the opening performance of six stores in the Big Box and Dollar Store categories.
The first 30 days after opening a store are critical to its success. During this time, the store is working to attract new customers and establish a loyal following. Several factors can influence the success of a store’s opening, such as its location in or near high-traffic areas, promotions or competitive pricing, a wide selection of products, or targeted advertising. In addition to these factors, we found that the speed to find a market is also directly correlated to the distance from existing same brand locations.
For instance, a new Walmart can ramp up twice as fast in new markets as they can in existing markets. Dollar stores, on the other hand, may see a difference of up to 4x in ramp-up rates between new and existing markets. Considering the commonality of seeing multiple dollar stores within 10 miles of one another, the larger jump may be due to factors like a loyal customer base where customers are more likely to choose the store that is most convenient for them. Warehouse Clubs like BJ’s may see similar ramp up rates no matter the market since shopping there requires a membership, and people tend to stock up less frequently than Walmart or Dollar General.
Opening a new store is a significant investment, but with careful planning and attention to key factors, retailers can increase their chances of success in the first 30 days. Location research should be carefully considered when opening a new store since newer markets offer larger boosts in traffic rates.
Place Intelligence Metric (PIM) is a location-based dataset that contains metrics about visitors to a place on a weekly basis. It can be used to analyze a range of visitation behaviors, including trends, seasonality, and visitor attributes. For the purposes of our analysis, we used visitation trends from this dataset between 2021 and 2022.
Table for chain, store, distance to nearest store of same chain, days to reach the average monthly visits
Standardized cumulative visits for Walmart, Dollar General, and Bj’s stores
Analysis from PlaceIQ reveals mirrored patterns in 2021 and 2022 traffic – predicting an enthusiastic return in traffic.
Black Friday retail spending increases surpassed visitation increases with larger basket sizes, higher in-store conversion rates, and demand for savings.
Despite a pull back in consumer spend, online shopping has maintained a strong signal, particularly for households with kids.