Times are challenging for retailers, with inflation, supply chain challenges and changing consumer demands presenting very real obstacles at each stage of business. Retailers cannot simply lay low to weather the uncertainty. To stay ahead, retailers must take advantage of the full range of options that new advances in data and intelligence provide – or risk falling behind as others get ahead of the curve.
We’ve invested heavily in data and tech and are actively testing new tools and advances to help our clients minimize risk and make smarter investment decisions. As some retail clients use logistics and transportation data to identify traffic patterns that inform route decisions or comb through omnichannel data to make the shopping experience more seamless for customers, this can have a tangible impact on their business.
One of the most exciting advances in the intelligence space is block-level location data to help retailers make the right site selection decisions and compete in an unpredictable economy. CBRE’s ShopoGraphics helps connect the dots behind retail siting, allowing retailers to find reliable site expansion opportunities in centers that have already proved to be a success.
ShopoGraphics quantifies the relationships from over 1.2 million retail locations across the country. This analysis clusters more than 200,000 retail zones to form 41 distinct segments. These datasets create a more robust picture of retail ecosystems, helping companies see the value in co-location, or even highlighting new opportunities for expansion in existing markets. These segments show retailers exactly what kind of clusters they should target to find success and demonstrate psychographic details about the habits shared by consumers who frequent the clusters.
Zeroing in on one of those segments — “Gadgets, Grub and Pugs” — can illustrate this idea in action. With more than 810 locations across the country, this segment is commonly located in larger suburban retail areas. These clusters are often centered around a big box store and are dominated by casual dining. The images below capture two separate Gadgets, Grub and Pugs locations – one in California and one in Illinois. While the states are different, the types of retailers inside the cluster are nearly identical, and the same is true for the 800+ other cluster locations.
At the same time, we can analyze the different ShopoGraphics segments in between markets to bring a greater understanding of shopping habits. Although segments look the same in any market, parsing through the how and why of how clusters appear can offer valuable information on co-tenancy success. For example, New York City hosts an above-average amount of “Hoagie Eating Hipsters” clusters compared to other urban markets, revealing the appeal for smaller centers focused on convenience in this area.
Shopographics is just one powerful tool that helps retailers mitigate risk during uncertain times. As companies look to 2023 and beyond, they must use every dataset and analytical tool at their disposal to assist in their real estate decision-making process. While needs may vary by sector, the underlying message remains the same – data and technology solutions, and the precise insights they generate, are key to giving retailers the edge in achieving their aspirations.
Tahirah Mahan Thomas is Managing Director of Location Intelligence and Retail Analytics at CBRE, and Taras Skavinskyy is Director of Analytics, CBRE, authored this article.
