FLORHAM PARK, N.J. -- A new Kalibrate Technologies study found that 78% of respondents use third-party vendors versus in-house tools and processes to find new locations, determine sites to be remodeled and develop strategic plans for their network of sites.
Kalibrate has unveiled the results of its first annual global retail site evaluation and network planning survey. The results include feedback from executives at retail petroleum and convenience store companies representing 24,000 sites selling 30 billion gallons annually.
In regards to volume forecasting, the survey shows that the three most important capabilities are ability to forecast volumes for new locations including fuel, c-store, car wash and fast food; ability to forecast volumes for changes to existing sites including fuel, c-store, car wash and fast food; and ability to forecast cannibalization, which allows users to understand how much volume will be transferred from one site to another (including competitors) as a result of proposed changes.
More than 84% of respondents rate the ability to "identify the optimal locations for new sites" and "understand the strengths and weaknesses of their sites versus the competition" as the two most important analytics in their retail network planning process. Other highly rated analytics were determining return on investment, identifying key competitors, determining market share position and determining brand value.
More and more retailers are seeking to obtain competitor market data to improve their investment decisions. Survey findings show the most important data needed for retail site evaluation and network planning is traffic count data (92%) followed by demographic consumer data (89%), own site data (75%) and competitor site data (74%).
Half of those surveyed indicate having a method of forecasting volume prior to implementation of changing brands, adding diesel, adding pumps to the forecourt, adding a car wash or fast food restaurant and remodeling the c-store.
"With today's high cost of investment to build a retail site from the ground-up or remodel an existing facility, retailers want to ensure they will receive a return on their investment," said Bob Stein, president and CEO of Kalibrate. "They realize that utilizing predictive analytic solutions with relevant market and competitor data enables them to gain benefits they cannot get with an in-house system. Global vendors, like Kalibrate, are continually investing in software, science and data collection improvements to enable clients to focus on making the best investment decisions."
Kalibrate (formerly KSS Fuels) is a global provider of fuels pricing and retail location intelligence. Its software, analytics and consulting solutions draw on more than 20 years of expertise and insight into the needs and opportunities of petroleum retailers. Kalibrate has headquarters in Manchester, U.K., and Florham Park, N.J.
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