Retail property analysis system

Citation

(2001), "Retail property analysis system", Property Management, Vol. 19 No. 4. https://doi.org/10.1108/pm.2001.11319dab.022

Retail property analysis system

Retail property analysis system

Experian has launched a new retail property analysis software tool designed to help the multiple retailer make better investment decisions when locating new sites for outlets and the retail property developer, in identifying potential new shopping centre locations.

Experian's Property Analysis System (PAS) combines state-of-the-art decisioning software, consumer purchasing information and retail catchment area demographics to enable companies in the retail property sector gain a thorough understanding of a location before making vital investment decisions.

The three main sources of information combined to make the system are:

1. 1.

   Goad retail information, which contains the locations and characteristics of more than 330,000 outlets in some 1,150 town centres and 750 major retail parks.

2. 2.

   Consumer information from Experian's unique Canvasse lifestyle questionnaires combined with other local demographic indicators.

3. 3.

   Catchment area information based on consumer transactional information and structured to ensure that the relationship between consumers' home locations and the centres in which they shop is accurately measured.

Martin Davies, Director of Experian's Retail Consultancy Service, commented: "Experian's new Property Analysis System can be used by anyone responsible for making important investment decisions in the retail property sector. Typically, the system would be used in the research departments of property development companies, investors, property agents or retailers".

The Property Analysis System has been developed to focus on a "Target Centre", the centre that is being investigated. This is a major shift from most desktop marketing systems which primarily focus on the consumer. All analyses and reports pertain to the target centre to create a comprehensive set of information for a centre. The following analyses are easily available:

1. 1.

   Retail centre ranking. Assesses changes in centre vitality over time as a result of new developments, both within the centre, and in competing centres.

2. 2.

   Shopper flow model. Shows how changes in centre attractiveness are likely to affect the catchment area of a centre, resulting in changes in market size, customer penetration and customer profile. Changes in centre attractiveness may arise from new shopping centre developments, both within the target centre and within competing centres. Customer profiles can be produced in "before" and "after" scenarios to identify changes that are likely.

3. 3.

   Benchmarking. Identifies most similar centres to a target centre, by comparing a combination of market size, customer profile and retail centre composition. Centres identified as benchmarks can be used in subsequent analyses as realistic comparables. Benchmarking uses an algorithm to assess the similarity between a centre and all other centres on a number of specific variables.

4. 4.

   Catchment retention and leakage. Identifies those centres that compete with the target centre, and quantifies the extent to which they do so. This technique uses Experian's Shopper Flow Model catchment areas to determine the shopping habits of people living within a defined geographical area. The report shows the proportion of people that shop in each centre within the target centre's catchment area.

5. 5.

   Goad centre report. Profiles the retail mix of a centre, compared to that of a base area, this being a country, a region, another centre or a selection of benchmark centres. The retail mix is very detailed and includes both outlets and floorspace counts.

6. 6.

   Catchment profile reports. Reports on the characteristics of customers in the catchment area. A number of profiling tools are available, and all reports can be compared to the most sensible base, whether it be the county, the region or a selection of benchmark centres:

7. 7.
   • •

     Experian's MOSAIC classification, the market leading classification of Great Britain's consumers.

   • •

     Census demographics.

   • •

     Consumption estimates based on the Family Expenditure Survey or Lifestyles.

8. 8.

   Retailer presence. The retailers present in the target centre can be analysed in a number of ways:

9. 9.
   • •

     The mix of retailers can be analysed using the Goad Centre Reports.

   • •

     Retailer Gaps Analysis identifies those retailers that are not present in the target centre but which are present in the benchmark centres – this can be used as powerful support material in letting packs.

   • •

     Retailer Unit Size Analysis compares the Goad area of each retailer in the target centre to their units in the benchmark centres. This technique enables identification of retailers that may be considered to have undersized units in the target centre.

10. 10.

    Mapping. The mapping capability enables the user to view the catchment area of the target centre. A number of catchment area definitions are possible:

11. 11.
    • •

      The Shopper Flow Model shows actual retail catchment areas.

    • •

      Drivetimes can be created around grid references, postcodes or centres using a variety of drivetime speeds or by travel distance.

Experian is an information solutions company. It uses the power of information to help its clients target prospective customers, manage existing customer relationships and identify opportunities for profitable growth. Through multi-channel delivery of its Web-based products and services, Experian enables its clients to conduct secure and profitable e-business. Experian is a subsidiary of the Great Universal Stores plc and has headquarters in Nottingham, UK, and Orange, California. Its 12,000 people support clients in over 50 countries. Annual sales are around £l billion.

For more information, visit the company's Web site on www.uk.experian.com