The future success of a retail location does not only depend on the performance of the store itself. The combination of supply & demand in the wider economy, as well as the development of other stores in the immediate surroundings all determine the future “chance of survival” of the store. We asked ourselves: can we use the information of the past to evaluate whether a proprietor in sector X will still be on location Y next year? The answer proved to be “yes”, and the query resulted in the development of the Retail Risk “traffic light”.
The Retail Risk Index quantifies the risk profile of a storefront via four performance indicators:
- Building Index Performance of this particular building up until now.
- Street Index Development of the shops and stores in the immediate surroundings of the desired location.
- Sector Index Development of the sector in which this store operates.
- Supply & Demand Index The relation between supply and demand of the sector in which this store operates (in the immediate surroundings).
This profile thus helps you to get a good overview on the risks and benefits connected with potential shopping areas, streets, or buildings. As a result, you are well-equipped to make decisions on where to invest (or decrease investments). Below you find a timelapse of the Retail Risk Index mapped in our Retail Plans:
Would you like to know more?