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  • Writer's pictureDeodate

L.A. Retailer Leverages Modern Site Selection Strategies to Minimize Risk in Portfolio Expansion

Updated: Mar 25, 2023


“While our client’s current physical locations drive immense revenue, it’s crucial for them to always remain on top of ever-evolving consumer trends and behaviors as they look to expand their portfolio. DEODATE’s ability to analyze large datasets of information has been an invaluable business differentiator in their expansion initiatives.

– Mauricio Nunez, SVP, Consulting Services, DEODATE


OVERVIEW

Expanding a brick-and-mortar portfolio in any industry requires forward-thinking strategies that allow organizations to plan for the future and weather unforeseen disruptions that impact established revenue streams. While the COVID-19 pandemic deeply impacted retail foot traffic, it was e-commerce that created the greatest ripple effect for “traditional” retail sales. However, Innovative retailers continue to expand their brick-and-mortar locations and are able to delight increased numbers of clients by doing so.

DEODATE has a long history of providing commercial real estate consultancy to a number of regional and national retail brands looking to continue to hit, and exceed, their annual revenue targets.

MITIGATING RISK IN SITE SELECTION

One such DEODATE client, a small-format, Los Angeles-based grocery retailer, recently reviewed its portfolio of physical locations and recognized a strategic opportunity to expand its footprint. The expansion would enable the company to exceed its revenue goals and bring its unique, best-in-quality products to new markets.


The client determined that increasing their physical locations by 5 to 11 units per year would dramatically increase their earning potential, but not without risk. Simply identifying popular shopping areas where the client didn’t have a location was not enough to justify such risk, so the retailer turned to DEODATE for a market analysis rooted in qualitative and quantitative data.

DEODATE used decades of experience in lease negotiation and corporate real estate portfolio management to build an innovative and holistic site selection strategy that enabled greater confidence across the client’s entire expansion initiative.


CHALLENGES

Unfamiliarity with demographics of untapped cities and regions

Lack of qualitative and quantitative strategy

Rising commercial real estate costs in favorable markets

Limited internal bandwidth to execute strategy

Continuously evolving datasets

SOLUTION

DEODATE works with a number of leading retailers across the US, as well as with medical providers who follow expanded site selection parameters to in order to make sound, data-driven decisions around their existing and targeted locations. These KPIs include location-specific demographic information like income level and population density, traffic counts, proximity to competitors, potential acquisition targets, supply chain logistics, and legislative/regulatory analysis.

By charting these data points and many others, DEODATE established a set of core KPIs aligned with our client’s established business plan and history of successful ventures. DEODATE’s expertise in analyzing and accurately predicting shifts in large, constantly evolving datasets enables our clients to consistently make the most informed decisions for their business.


NEXT STEPS

By leveraging innovative site selection strategies, our client moved from taking reactive steps toward their business growth to a much more proactive approach that has resulted in even greater success in a highly competitive market. Their business leaders are now leveraging historic, current, and projected data in order to support their mission to provide best-in-class products to greater numbers of populations in need. DEODATE continues to further scale the client’s expansion strategies by building out rich datasets around site selection, parking, street visibility, potential joint ventures and partnerships, real estate cost forecasting, optimal site footprints, and asset performance.


Contact us today to inquire as to how these results were achieved, and how similar, tailored strategies may assist your organization's initiatives.



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