In looking for an ideal site for a company location, businesses are soon reminded of the importance of assessing the regional distribution of certain key elements. Customers, target groups, delivery depots and routes, purchasing power and consumer confidence are never distributed equally throughout a given market. It's therefore essential to pinpoint exactly where the most favorable conditions predominate before deciding on a site.

The most important factors depend to some degree on a given company's branch and stage of devlepment, but, whatever the situation, companies can profit from access to comprehensive, reliable and up-to-date information on the locations and markets under consideration.

By using point-of-sale surveys and/or other methods, companies should establish a precise customer profile and benchmark so that detailed strategic goals can be formulated.

These goals can then be further refined by making use of external market data, which allows companies to determine the ideal company location based on the criteria most important to success. GfK GeoMarketing offers Europe-wide regional market data for all important locations and markets, at both the macro- and micro-level.

Due to the many complexities involved, it's advisable to carry out an extensive assessment of a given location's potential and sustainability before making a significant investment.

There are a range of factors that can often only be properly evaluated by on-site experts, such as the overall quality of the location and infrastructure, potential for development, possible influence of other projects in the immediate surroundings and the local building codes and regulations. Another factor worth taking into consideration is the general health and status of the market and branch of business in question as well as any existing trends. Given the breadth and complexity of these issues, consulting with an expert should comprise an indispensible part of any company's location planning endeavors.

Here it is essential to use the services of a fully neutral and independent retail real estate consultant who can provide support throughout the venture's planning and implementation phases. This support should include comprehensive (and, if appropriate, custom-tailored) market data, thorough site appraisals and evaluations, assessments of the micro-location criteria and the boundaries of individual catchment areas as well as the qualitative and quantitative repercussions of the prospective venture. Only an expert with many years of experience and access to a broader team of professionals can adequately answer these questions.

There are many factors to be taken into consideration when planning a new location. Below are three of the main categories into which these factors typically fall:

1. Location analysis

The typical location analysis helps companies determine the ideal site for a new branch location. A retail location is only successful if it draws a sufficient number of customers, so it's always essential to gauge this factor as accurately as possible before deciding on a location.

This entails assessing the site's proximity to residential areas, drawing power, accessibility, distance from competitors as well as the socio-demographic profile of the intended customers (and the extent to which this profile corresponds to to that of the population residing in and visiting the area).

The right location emerges after all of these factors have been given careful consideration as part of a detailed micro- and macro-location assessment.

2. Branch network optimization

The typical goal of a branch network optimization is to close gaps in the customer service network, achieve a better market position than one's competitors and increase the market share within a given region.

Achieving this necessitates carrying out a detailed analysis of the existing and prospective locations in the target market. This results in a concrete plan for how to structure the company network so that its chances for sustainable success are maximized.

3. Impact analysis

Due to the many restrictive building approval regulations in European settings with regard to large-scale retail projects, companies can benefit from third-party support in navigating their way through the red tape. A typical second step is to then assess potential repercussions of the planned retail venture on the nearby inner-city area, convenience stores or the retailers already present at the location. It's very helpful to have access to a neutral, third-party advisor to ensure adherence to existing building codes and regulations and a favorable outcome of any negotiations between public authorities, project developers and the public. Retail experts with specialities in location and real estate research and consultancy - such as those employed by GfK GeoMarketing - can guide you throughout these important preliminary phases and provide invaluable advice that will lay the groundwork for success.