Expansion is a critical process for many organizations as they evaluate which markets to invest or divest in, where to open or close outlets, and which new or additional locations to prioritize.
EXPANSION | ANALYTICS | MAPS
We optimize expansion strategies with fully data-driven methodologies. One of our clients, an international food distribution company, was able to reduce the risks of its expansion investment plan by relying on solutions generated by foot traffic analysis, location intelligence, point of interest and competitor analysis.
The company, dedicated to the marketing and distribution of food products, needed to identify the most suitable areas for the opening and management of new points of sale in Spain.
Abacus Consulting developed a probability model that collects geographic, socio-demographic, preferences and interests of potential customers of the retailer’s stores, and mobility data, such as presence and traffic.
The methodology used for the development of this expansion solution consisted of the collection, debugging, standardization, validation and analysis of all information from secondary sources and third parties. An expansion solution was developed with the following characteristics:
Some data sources:
Abacus Consulting has variables such as location, surface area, opening date and other descriptive characteristics.
They will add an additional layer of information about each supermarket such as opening hours, rating, reviews…
Devices that have been inside each store to obtain the occupancy rate.
The devices that have been inside each Mercadona, allowing to know the origin of the customers.
Variables to describe social and demographic areas of influence of each store.
The site selection evaluation model was enriched with turnover information from the company’s existing stores, which was used to compare areas with similar commercial characteristics to those of the new locations. The sales that could be achieved by comparing the new locations with their mirror stores were estimated with a model reliability of over 90%.
Visualization: CaixaBank Research