Birds of a Feather Shop Together- Demographics and Store Performance

Birds of a Feather Shop Together- Demographics and Store Performance

The proverb “Birds of a feather flock together” describes how those of similar taste congregate in groups. We live in neighborhoods in which we share similarities with our neighbors but do we shop at the same places and for the same reasons based on similarities?

When we look at markets like the San Francisco Bay Area there are many differences between individual customers, groups of customers and their neighbors. These variations can be explained by location and how it impacts shopping patterns and behaviors. Here we explore what’s factors are really important to customer activity and store performance.

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Retail Scenario – Merchandising

Retail Scenario - Merchandising.jpg

A regional sales manager for a high-end department store discovered that their profit margin varies significantly across the Los Angeles area. This might be explained by work patterns and store locations. Could new insight into variation by zip code help maximize profits by locating a new store in an area of high weekend market potential, while avoid cannibalization of existing stores?

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An Example of Spatial Analysis

An Example of Spatial Analysis

What is Spatial Analysis?

Spatial analysis is something we all do, whether we’re aware of it or not. It’s how we understand our world — knowing where things are, learning how places relate and interact, figuring out what it all means, and what decisions to make or actions to take.

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