Conventional wisdom had it that the retail trade area is defined by adjacent concentric rings or drive times and its demographics, educational profile, residual income and average spend. But is it? We do not travel in the straight lines representing the diameter of a circle, nor shop in concentric circles; our purchase habits and impulses are governed by a different rationale and often irrational behavior. We have mental and emotional wiring of shopping comfort zones and we tend to avoid routes we feel are congested, rightly or not. We tend to shop where we work and how we commute, whether by train, car or even scooter or bicycle.
What Has Changed?
Technology is making a host of non-traditional data sets available that now add to the treasure trove of digital data ranging from GPS tracking of phone users, navigation systems in cars, real time traffic, credit card and payment data, consumer spending data, consumer financial data, social media, ecommerce data and much more. As this data is consumed in ever increasing quantities, analytics and visualization tools complement business intelligence that decision makers can use. Today we can cyber-geofence just about everything from a single tenant retail store to a shopping mall or even a parking lot, a loading dock, a QSR drive thru line, or a sidewalk.
Megalytics’ new Consumer Digital Footprint tracks consumer shopping patterns including where they live, where they work, where they go before and after they shop, what time of day and what day of week they shop and how far they travel. GPS and cellular data are used to establish journeys, home neighborhood and zip codes are identified, and from them we identify demographics, credit card spend, and retail trade gaps and voids. The resulting True trade area looks more like a jagged piece of puzzle than a perfect circle. Megalytics even goes further and identifies the pent-up demand based on online searches and likes within a geofenced area.
Digitally-Driven Brick and Mortar?
Retailers, developers, asset managers, acquisition managers, and investors are demanding intelligent data driven and highly granular insights to make better investment and disposition decisions. The resultant decision point has a highly assured chance of success given the quality of consumer insights available based on this new digital data ecosystem. Still highly fragmented, Megalytics pieces together numerous pieces of the puzzle, while keeping absolute anonymity, and identifies the target trade area and its ability to contribute to the success, sustainability and longevity of any new project. They dig deeper and factor in novel data sources, creating a paradigm shift in the retail analytics domain.
By using geofencing to define a true trade area, Megalytics is able to address how to better channel consumer wants and needs through the digital space into the brick and mortar retail development, design and deployment of the optimal modus operandi for retailers, even the associated brands. Then add the time-of-day and day-of-week consumer traffic shopping patterns and their share of the wallet. It gets better, with highly accurate gap analysis, Megalytics unearths opportunities and provides prudence in the over invested retail categories.
While digital retailers have made strides in identifying customers purchase patterns and predicting, to a great degree of accuracy, potential purchases, Megalytics has made leaps in doing the same in the brick and mortar world, using its Consumer Digital Footprint to bring the digital world into the brick and mortal space.