Leading retailers are embracing location intelligence

Are you keeping up, or falling behind?

The shift

Retailers are changing how they operate, driven by rapid technological advancements and a new generation of tech-savvy leaders. A key part of the shift is the integration of location intelligence, which provides crucial insights into consumer behavior and market trends.

The shift is moving retailers away from the intuitive, experience-based decision-making processes toward more precise, data-driven strategies. It is becoming the norm amongst the leading retailers in the Nordics.

As a manager, if you persist in using traditional methods, such as selecting new store locations solely based on intuition and experience, you may encounter challenges when competing with industry leaders. 

These conventional approaches are significantly less effective when compared to strategies that harness the power of AI and location intelligence.

A new generation of leaders drives transformation with data, technology, and adaptability

The shift in the industry is spearheaded by a new generation of leaders who focus heavily on data and technology. They rely extensively on advanced analytics to boost operational efficiency and quickly respond to changes in market conditions.

Here’s a breakdown of their essential traits:

  • Data-Driven: They prefer data over intuition, using analytics as the core of their decision-making.
  • Tech-Savvy: They embrace new technologies, including AI and machine learning, to enhance operations and customer experiences.
  • Agile: They quickly adapt to market changes and consumer shifts to stay competitive.
  • Innovative: They constantly seek new ways to improve processes.
  • Omnichannel Focus: They provide a seamless shopping experience across all platforms, optimizing each for effective customer engagement.
  • Collaborative: They promote teamwork and value diverse perspectives

The shift towards a more analytical and technology-driven industry is not just a trend—it is the future of retail. Embracing these traits will ensure you remain relevant and excel in the new era.

The power of location intelligence

Location intelligence combines geographic data with advanced analytics to provide insights that surpass traditional methods of area analysis. 

With various data sources, location intelligence helps you make informed decisions in areas such as site selection, network optimization, and marketing.

Real-world applications:

Numerous retail chains are already harnessing the power of location intelligence. 

Notable brands like Synsam, Elkjøp, Eplehuset, Princess, Egon, BigBite, and Norli, among others, leverage location intelligence to gain access to critical area insights, which gives them a competitive edge.

Some of the most common use cases

The practical applications of location intelligence in retail are vast and varied: 

  • Site Selection and Network Optimization: Evaluate foot traffic and economic potential to determine the best locations. Use demographic data, purchasing patterns, and insights from competitors to choose ideal sites for your stores. Apply location intelligence to strategically expand your network.

  • Lease Negotiations: Armed with detailed area insights, negotiate more favorable lease terms for your stores.

  • Competitive Analysis: Track competitors’ store performance and promotions. Use this data to differentiate your offerings or improve customer retention.

  • Optimize Inventory: Optimize store layouts and stock based on local demographics and buying behaviors.

  • Local Marketing Initiatives: Customize your marketing campaigns to connect with the local community

By integrating location intelligence into your operations, you enable smarter decision-making, boost efficiency, and enhance customer experiences. 

Tackle your challenges head-on

Engage your management team and identify your hurdles. Here’s how location intelligence can help you overcome some of the most frequent hurdles faced by retailers:

ChallengeDescriptionHow to use location intelligence to solve the challenge
High Costs and Failures in Traditional Expansion EffortsExpanding into new markets traditionally involves substantial financial risk due to inadequate market data, leading to poor decision-making. Retailers often end up investing in suboptimal locations, causing outlets to underperform and drain resources.Reduced Financial Risk: Get detailed analysis of market trends, consumer behaviors, and the competitive landscape. Effective Site Selection: Analyze customer demographics and competitor presence to pinpoint optimal store locations.
Inefficiencies in Manual Processes and Operational DelaysTraditional retail operations often suffer from inefficient manual data collection and time-consuming workflows, leading to increased operational costs.Streamlined Data Collection: Automate your data collection, improve operational efficiency and free up time for strategic planning.
Slow Reactivity to Market Changes and New CompetitorsOutdated methods make it difficult for retailers to keep pace with rapid market changes and new competitors entering the market, causing missed opportunities and allowing competitors to gain market share.Agile Market Adaptation: Identify market changes, adjust strategies and seize emerging trends and new opportunities. Proactive Competitive Strategy: Get access to comprehensive market data to quickly identify and respond to competitors’ tactics.
Inaccurate Assessment of Store PerformanceUnderstanding how different stores perform in their respective areas can be challenging without accurate data.Benchmark Stores: Compare performance against each other and within specific areas to identify over- and under-performing stores. Relocation: Assess a store performance and compare it with competitor stores to determine if the store should be moved to a more advantageous location.

Conclusion

Retail leaders who adopt location intelligence are positioning themselves for success. Location intelligence is more than just an operational tool, it’s a strategic necessity for those aiming to lead. It empowers smarter decisions across the board, from site selection to customer engagement, turning challenges into opportunities for growth and enhanced competitiveness.

Next Step

Gather your management team to discuss the limitations of traditional ways of working, and explore how new technology can address your hurdles. Start harnessing the power of location intelligence before it is too late. 

Stay ahead!

Book a demo, and we’ll show you how location intelligence can support your business strategy and growth.

Share this on:
Call us directly for one
informal talk
Leave your e-mail
and we will contact you

    Do you want to hear more?
    Book a digital demo!
    Choose a time and date that suits you