Everyone’s Talking About AI
But What About the Data on Your Doorstep?
It’s hard to go a day without hearing about artificial intelligence (AI). From automated product recommendations to predictive supply chains and everyday scrolling on LinkedIn.
But here’s the thing: while retailers are busy trying to predict the future, many maybe missing what’s happening in plain sight.
The data on your doorstep – how people move, where they shop, what makes them visit – is often more useful than the latest algorithm. And it’s already here.
Ai is only as good as the data you feed it
There’s a lot of noise around AI tools for forecasting demand, mapping customer journeys and streamlining operations. But even the smartest systems rely on something basic, quality data.
If that data is patchy, outdated or disconnected from how people actually behave, then no amount of modelling will help. While many businesses are trying to predict the future, they’re overlooking the patterns that are already visible in the present.
You don’t need AI to tell you that the local parade of shops is buzzing every Saturday, or that commuters pour in and out of the station between 8am and 6pm. But many retail strategies still rely on national trends and gut instinct, instead of focusing on what’s happening locally.
Find out which questions it could help you answer
This is where Location intelligence comes in. It can make a real difference as it helps you to answer questions like:
- Is this location close to our target customer base and key suppliers?
- Where should we open next and where should we avoid?
- Is this location accessible by car, public transport and pedestrian traffic?
- What is the market size and potential for our service in a specific area?
- Who are our main competitors in this area and where are they?
- Do the demographics in this location match our target customer profile?
- Are there demographic trends that could impact our business in the future?
Retailers who have Already Realised The Benefits of location data insights
Greggs – Strategic Placement In Transport Hubs
Greggs has strategically expanded their presence in high-footfall areas such as train stations, universities and travel hubs. This approach aims to capture the commuter market and increase accessibility for customers on the go. By positioning stores in these locations, Greggs ensures consistent customer traffic throughout the day
Aldi – Targeted Expansion Based On Demographics
Aldi has been actively seeking new store locations across the UK, focusing on areas with specific demographic profiles and consumer demand. Their site requirements include towns with a population of 15,000 or more, and they consider factors such as accessibility and proximity to main roads. This targeted approach allows Aldi to serve communities effectively while ensuring the viability of each new store.
Decathlon – Tailoring Store Formats To Urban Footfall Patterns
Decathlon has adapted its store formats to align with urban consumer behaviours. In cities like Paris and Zaragoza, they’ve introduced compact “Decathlon City” stores situated in high-footfall areas. These stores focus on popular urban sports such as cycling and running, catering to the specific needs of city dwellers. This strategic store placement and product focus demonstrate Decathlon’s commitment to understanding and serving local markets effectively.
Uniqlo – Strategic Flagship Placement In High-traffic Areas
Uniqlo’s approach to flagship store placement underscores its emphasis on local consumer patterns. The recent opening of their flagship store in Shinjuku, Tokyo, a district renowned for its heavy foot traffic, illustrates this strategy. By situating the store in such a bustling area, Uniqlo aims to attract local shoppers and international tourists. The store offers a range of products, including exclusive items and collaborations with local businesses, enhancing its appeal to a diverse customer base.
It Doesn’t Have To Be Complicated
Periscope® is such a powerful platform, it allows you to assess and compare up to 200 data attributes simultaneously using your own secure, corporate version of Google Maps to find the perfect location for your next outlet.
But it is easy to use and can unlock an answer for every team from planning to marketing, finance and operations. The key is looking closely at what your local data is trying to tell you and not relying on AI insights to make your strategic decisions.
AI And Location Data Work Together
The concept of AI is not a new one. It’s been helping us analyse data sets and build forecast models for decades. So of course, AI has its place even with Location Intelligence, as it provides better visibility around your business and in the markets you’re yet to move into.
It can help you to:
- Prove ROI on local campaigns
- Cut down risk in store openings
- Tailor marketing to real people in real places
- Spot underperforming sites before they become an issue
Don’t Let AI Blind You To What’s Real
AI can be powerful, but only when it’s grounded in the truth of customer behaviour. For retailers, that behaviour starts with location.
Before you chase the next innovation trend, take a good look at Periscope® as it might just show you your next area of growth.
Book a call with Henry, our new Head of Sales, to discuss how we can help you to see more in your data.