Clients & Case Studies

Why Every Retailer Needs a Contingency Plan for Seasonal Spending

Why Every Retailer Needs a Contingency Plan for Seasonal Spending

It’s that time of year again, when savvy retailers begin planning for the seasonal spending.

Just not in the way you might expect.

If you still associate “seasonal spending” with beaches, Black Fridays and twinkling lights, it’s time to expand how you think about seasons. Shopping behaviors aren’t just influenced by summer vacation and holidays. Some unexpected “seasons” bring about dramatic influences on what, how and where people buy:

  • Economic development that draws shoppers away from one location and toward another
  • Economic downturns that move families from one consumer classification to another
  • Weather events or disasters that completely change shopping patterns

These conditions hit inconsistently, without warning, and take a serious toll on sales if you’re not prepared.

So how can you prepare if you can’t be sure of what is coming?

Use spatial analytics to prepare a contingency plan

With spatial analysis, you can identify location-specific trends and patterns to forecast how shopping habits change during unanticipated retail disruptions.

For example, consider a chain of hardware stores in the San Francisco Bay area. Spring and summer are typically times when garden tools and lawn care products fly off the shelves.

Until the state of California was hit by a serious drought.

Residents began neglecting lawns to compete in an ugliest yard contest to help conserve water.

Celebrities were publicly shamed for maintaining their landscaping.

Bucket sales soared as residents sought out ways to catch every last drop.

Suddenly, “seasonal spending” shifted. Shelves normally restocked with garden hoses and sprinklers wouldn’t need much replenishing. Homeowners were more likely to invest in the hardware and tools needed to fix leaky pipes and dripping sinks.

That’s where spatial analysis makes all the difference.

In this situation—one currently being faced by an eSite Analytics client—evaluating each store’s point-of-sale data reveals the information you need to anticipate shifts and adjust successfully. Operational managers can use spatial insights to create contingency plans for each store’s merchandise mix and marketing in dry times.

What unusual seasonal spending should stores anticipate?

Crop damage that could drive up food prices? Low snowfall that could eliminate the need for road salt? Road construction that will change how people drive past your locations on their ways to popular tourist destinations?

Whatever the circumstance, the time to plan is now. Spatial analytics makes it easy to create the forecasts and contingency plans you need to ensure success whatever the season brings.

eSite AnalyticsWhy Every Retailer Needs a Contingency Plan for Seasonal Spending
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Spatial Analysts Know A Lot About Customers, Retail & Real Estate

Spatial Analysts Know A Lot About Customers, Retail & Real Estate

In our last post, we introduced you to the five habits of highly effective spatial analysts—the number-crunching geniuses who help brands like Five Guys and The Container Store select the best locations possible.

“We were originally looking for a company that provides mapping software to help us better visualize our markets, and wound up discovering a firm that will revolutionize the way we analyze our business locations.”

That endorsement from eSite client Vision Source, is one of many our team has received. So how, exactly, are eSite analysts revolutionizing site selections and market expansions, and why is it critical to take advantage of this expertise for ongoing success?

eSite Analytics Knows Retail

Can your company answer—truly, comprehensively answer—the all-important retail question: Just how big can we be? Our analysts can (and have). And not just for fast-growing retailers but quick service restaurants, grocers and shopping centers, too.

eSite Analytics Knows Real Estate

eSite’s Google Maps-based spatial analytics tools enhance what’s widely considered the most advanced GIS technology available today. While customers can easily operate eSite Tools™ on their own, many choose to have eSite do it with them.

Why? Because our team knows how to take big, ideal expansion opportunities and turn them into realistic market plans—the kind real estate teams need for board presentations, executive support and ultimately sustained growth and operations.

eSite Analytics Knows Customers

Without location-based customer data, companies wouldn’t know where to place stores or how to optimize markets.

That’s why our analysts rely on the best possible resources, such as Experian Mosaic® segments, to identify and profile customers. They can even connect a company’s customer data with comprehensive consumer data warehouses to support crucial decisions: how to properly space stores, where to focus cross-channel marketing efforts, how to identify “green fields” and more.

eSite Analytics Knows Clients

Most of all, our analysts are relentless when it comes to innovating and identifying new opportunities.

“I love it when a client poses a problem and we dive into data—but instead of just bringing a little clarity to the situation we uncover a whole new world of opportunities,” said eSite Analyst Jacki Renegar.

Ready to learn more?

Stay tuned in to eSite Analytics innovations by signing up for the Know Really Newsletter. You’ll receive quarterly updates on the latest industry trends, eSite Tools™ updates, client news and more. Sign up here.

eSite AnalyticsSpatial Analysts Know A Lot About Customers, Retail & Real Estate
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Orchard Supply Hardware Expands Again!

Orchard Supply Hardware Expands Again!

Another eSite client made headlines this month when Orchard Supply Hardware announced big growth plans for 2015. The local home maintenance retailer has started off the year with three new store openings in California and Oregon, plus plans to add 1,000+ new associates.

Our analysts are very excited to hear about these latest successes. From everyone here at eSite Analytics, congratulations! We look forward to more site selection and location analysis collaborations throughout the year.

eSite AnalyticsOrchard Supply Hardware Expands Again!
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Associated Press: Five Guys, Shake Shack Creating Stiff Competition

Associated Press: Five Guys, Shake Shack Creating Stiff Competition

America’s oldest and biggest burger chain is experiencing some serious competition from eSite Analytics clients.

According to last week’s Associated Press story, Five Guys and Shake Shack are giving fellow fast-food brands a real run for their money. Here’s what the article had to say about our partners in spatial analytics:

“Shake Shack, which is expected to make its much anticipated debut on the New York Stock Exchange,…has grown to 63 locations around the world, including 36 in the U.S. Over time, it sees potential for at least 450 U.S. locations.”

“But Shake Shack isn’t the only one rushing into the burger market. Five Guys, for instance, has more than 1,000 U.S. locations and more than 1,500 in development.”

We’re honored to be a part of this great growth and look forward to our continued work with Five Guys and Shake Shack as they continue to expand.

Read the full AP story here.

Want to see more?

Check out these recent headlines eScribe clients are making:

Time Magazine: Investors Sink Their Teeth Into Shake Shack’s IPO

The New Yorker Magazine: The Shake Shack Economy

Photo credit: Carlos

eSite AnalyticsAssociated Press: Five Guys, Shake Shack Creating Stiff Competition
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Shake Shack, The Container Store Experiencing Significant Gains

Shake Shack, The Container Store Experiencing Significant Gains

It’s always thrilling to see our wonderful clients make headlines. This month, it’s Shake Shack and The Container Store.

In January 2015, the fast-casual burger chain priced shares for an upcoming initial public offering at $14 to $16, an amount that could mean a valuation of more than $500 million.

Meanwhile, The Container Store continues to experience sales growth after its debut on the New York Stock Exchange in 2013. The specialty retailer plans to open 10 new stores, including one relocation, in 2015.

We’re delighted to congratulate both clients. eSite Analytics CEO Tom Blazer put it best when he said:

“This is the kind of growth that inspires us to keep innovating.”

Very true! With new partnerships, spatial analytics products and Trip2Trade features on the way, eSite Analytics has a lot in store for 2015—for The Container Store and Shake Shack as well as all our other wonderful clients.

January 30, 2015 Update: Shake Shack shares soared 150% in the first few minutes of trading! Read the full story here.

eSite AnalyticsShake Shack, The Container Store Experiencing Significant Gains
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