Optimal location sourcing through e-commerce data analysis.

Situation:

Where should a brand open a store in a new second-tier market?

As a brand grows its physical presence, brokers become less reliable for finding the best locations. Of course, they still offer the expertise of the general market and can provide options, but ultimately, the brand knows where its customers live.

Our client had extensive sales data that Brin utilized to find an optimal location unique to the brand and its customers.

Solution:

Building and execution of data analysis tools and mapping.

• Brin created a model to discover the e-commerce sales within a certain radius of each potential new location.

• She mapped out the client’s e-commerce and wholesale sales data in a GIS system to showcase the clusters of customers in the market.

• In combining the radius analysis and GIS analysis, Brin pinpointed the most optimal location for the client’s new store, which was surprisingly not the most popular shopping location in the market.

Result:

The result was a highly successful store that beat sales expectations. In addition, the location was the less popular option, counterintuitive to what the brokerage suggested, and had more affordable economics. This deal was estimated to have saved the client $6 million over the lease term (compared to the mall alternative), with an approximate payback of 20 months.