Location (Data) Is Everything for Retailers Opening Stores

livemint.com:

When executives at retailer Untuckit considered locations for a new store on Long Island, N.Y., they initially dismissed a location they felt was too close to an existing store at the Roosevelt Field mall. Then the men’s apparel brand saw the cellphone data. It showed the two locations were drawing customers from opposite ends of Long Island, convincing them that if they were to add a store at the second mall, it wouldn’t cannibalize the first.

The execs signed a lease and are scheduled to open at Walt Whitman Shops next month. It is one of at least 14 new stores Untuckit plans to open this year. The digitally native company leaned heavily on cellphone and other data from technology company Placer.ai in choosing locations, said Chris Riccobono, the company’s founder.

“It allows you to see your demographic," he said. “It gives us this level of confidence." Retailers opened more stores than they closed in 2023 for the third consecutive year. Company announcements tracked by research and advisory firm Coresight Research show the streak continuing into 2024, and retail vacancy has fallen to record lows nationwide.

Underpinning this steady expansion is the increasing sophistication of cellphone data and other location analytics, which allow companies and landlords to pinpoint spots for successful stores with greater accuracy than ever before. Pings and GPS signals from shoppers’ cellphones tell retailers not only how many people visit a mall or strip center a day, but also what time they go, how long they stay, where they shop and how many times a year they are likely to come back. Retailers layer in their own data, including customers’ addresses and shopping preferences gleaned from their online sales and loyalty-program