Saturday 15 November 2014

Choosing Suitable Competitors For Existing Tenants

How do you introduce new retailers (or traders) into a product category while limiting any damage to the existing retailers in that category?
This was the dilemma faced by a UK shopping centre when it wanted to introduce new food & beverage operators without damaging the business of one of its prime current tenants. The prime tenant sold Japanese food.
The answer for this centre lay in the readily available sales data for UK shopping centres which enabled them to compare the takings of Japanese food restaurants and cross link with other types of food outlets.
They found that Mexican, American and Italian restaurants were less likely to impact on their Japanese food outlet and so they targeted those types of restaurants to fill their vacancies.

One example where comprehensive data can be very useful.