Details of a sophisticated system for predicting the economic prospects of a store refit were revealed by Nisa-Today’s senior trading controller John Baines.
Project Retail provides an in-depth report forecasting the potential turnover and profitability of a store in any given location.
The system begins by drawing up a map of a store’s trading area and analyses the impact of any competition. It also draws up a socio-economic profile of the population within the trading area.
Baines said: “From the demographic profile a pretty accurate picture can be built across all socio-economic groups because we know what they spend their money on – the amount of research in this area is immense.”
The system can then work out the likely turnover of a store and even forecast sales by department. From this a net profit forecast is produced enabling a summary of the viability of a scheme to be made. Baines said this was enabling retailers to made decisions on major refits.