So, maybe your brand is looking to break ground at their new brick-and-mortar location. Or perhaps, since we are slowly moving back to normal, your business is looking to add another location to reach new, previously untapped markets. Whatever the reason may be, when it comes to selecting a new commercial real estate site for your brand, using data to help make your decision is a must.
While you can discover an abundance of helpful information and insights when using location intelligence, this innovative resource is especially useful for commercial retailers diving into the realm of site selection. Whenever brands are looking to expand their physical locations to new sites, they always want to know one thing: which spot will yield the highest profit? For most retailers, this means choosing a location that assures ease of access and a spot that is rich in foot traffic.
Foot traffic can be defined as the total number of people passing by your business on any given day. For retailers of every shape and size, measuring this is a highly important step in their day-to-day analytical functions. Retailers always aim to ensure they are improving foot traffics into and around their stores via marketing efforts and promotional efforts. Retailers looking to select a new location for their business always want to take some time to evaluate the foot traffic trends in and around the potential site selection.
After all, more foot traffic does mean more business. And more business, well everyone knows that means more revenue.
Let’s look at how AirSage Point of Interest Analysis can help you select the right location for your business.
AirSage Case Study: Point of Interest (PoI) Analysis at Palmer Square, Princeton, NJ
Palmer Square is situated in the heart of Princeton, New Jersey, populated by offices, restaurants, bars, and shops. This public space is also used for events, concerts, and festivals. Directly nearby, some famous educational institutions like the University of Princeton, the Westminster Choir College, Princeton High School, Princeton Unified Middle School, and Community Park Elementary school. The place also attracts people with the Princeton stadium, the Morven Museum & Garden, and different parks like the Billie Johnson Mountain Lakes Nature Preserve and the Marquand Park.
Analyzing Daily Visitation Pattern
This graph describes the daily visitation pattern for the month of July 2019. As you can see, the peaks do not coincide with the same day of the week, indicating the big influence of events on the visitation pattern. Most of the visits are in the middle of the month, between the 12thand the 20th, and at the end, between the 24th and the 26th. The highest peaks recorded are on the 13th and 18th of July, a Saturday and a Thursday. The lowest are on the 1st, 21st,and 27th, a Monday, Sunday, and Saturday. The visitation irregularities are probably due to the vacation week around the Fourth of July and the summer holidays when people spend more time outside of the city and students visit their hometowns.
What do we see from weekday visitation pattern
The graph below illustrates the visitation patterns during a week at Palmer Square. We can observe that the density of visitation is higher during the week, until Saturday, mid-morning, and around the dining time (among the reasons we can consider the affluence of summer students during the lunch break, from Princeton University, which is located nearby), especially on Tuesdays from 2 pm. The rates of visits gradually increase towards 11 am, for example, on Wednesday and Thursday with 1.3K of visits at noon. Although we observe a density peak between 2 pm and 5 pm on Tuesday. Considering that Palmer Square is the primary dining and shopping destination in the city, we can also observe higher visitation in the late afternoon and during the dinner hour on Wednesday, Thursday, and Saturday.
Analyzing the average dwell time
This table shows us the visit duration in the area. Most of the people, 63%, stayed for more than 15min but less than 2 hours, assumingly doing some quick shopping or staying in bars for drinks. In the second place, we have people who stayed the most amount of time, 5hr +, most probably residents and office workers. The other categories, 2hr +, 3hr +, and 4hr+, are extremely small.
Demographics, Ethnicity & Income
The chart below shows the distribution of ethnic groups visiting Palmer Square. From the data analysis performed, we can see that most people visiting the area (more than half) are White, followed by Asian and Black people. On the other hand, only a small portion is formed by other ethnic groups.
The bar chart shows the percentage of visits, comparing men and women, divided by age range. The highest percentage visiting the area is between 29-59 yo.
The final graph present the income distribution of Palmer Square visitors.