A leading South African DIY stores brand leveraged location data via GeoPlace as part of wider due diligence efforts made to assess opening a new store location within a major shopping mall located in the Johannesburg metropolitan area.
The goal of the site analysis was to provide additional key indicators across whether the proposed mall location was worth the investment and to what extent this new store launch would cannibalize owned stores in the network compared with nearby competitor DIY stores. The surrounding area is competitive and well supplied with DIY brands and hence any new store launch will have a direct impact on both the brand and its competitors.
“IQ data and their solution capabilities with mobile location data means we are now able to with a much greater degree of certainty make strategic business decisions. IQ has helped to reduce the decision making process from weeks to days."
By utilizing GeoPlace, IQ data ingested a total of 20,000+ DIY Store shoppers observed within the surrounding area over a period of 3 months. Analysis was conducted using a 10km radius from the shopping mall and mobile derived location signals were mapped across relevant Points-of-Interest (POIs) and segmented across Dayparts. This provided us with individual customer profiles that included individual neighborhood residents, DIY store shoppers and shopping mall visitors. Additionally, we measured customer journeys to and from DIY stores and to the shopping mall under consideration to determine shopping convenience and we compared this with impact other shopping mall locations have had on DIY stores in other areas.
GeoPlace contributed to a wider analysis that overall indicated positively towards an investment in opening a store in the proposed shopping mall location as it attracts solid visitor numbers from both within the surrounding area and further afield. The shopping mall is a popular destination for DIY Store shoppers across both the client's brand and its competitors. Additionally it was determined that the new store launch would attract between 20-30% of its customers at the expense of the brand's closest competitor stores, which would increase market share considerably. The decision was to move ahead with locating a new store in the shopping mall.