Some retailers get lucky and select good locations, but many aren’t so lucky, and they select poor locations. Too often entrepreneurs, who are owners of their own business, believe that they can make their business successful despite a poor store location. They often fail. As a retailer in today’s multifaceted market, selecting the location for your store is the most important decision you will make in your efforts to achieve success in retailing.
Last year was a rough year for many high profile retailers in China. Luxury brands saw a slower growth rate as did iconic brands such as Nike and Levi’s. Although still firmly in double-digit territory, anything less than 15% annual growth in retail makes China watchers sit up and listen. The signs for 2013 thus far are not looking much better. Sales during the Chinese New Year in holiday in mid-February rose at the slowest pace in 4 years. And just in the past week, another retailer, Daphne Shoes, reported a same-store sales decline in the first quarter of 2013.
“Garbage in, garbage out.” We’re all familiar with this phrase. When trying to analyze some of the rougher datasets, we’ll hear this expression from those who are questioning the results. But does the old adage always ring true? Should all “bad” data be considered “garbage” that is useless in analysis? Moreover, what is “garbage” data?
Choosing the best possible locations within a city is challenging, particularly in China’s 2nd, 3rd, and 4th tier cities. But thanks to improving data availability and advances in spatial and other analytical tools, investors now have the means for better, more accurate and cost-effective analysis of potential sites.