...FOR SAFEGUARDING LOCAL RETAIL SUPPLY
Location and viability analyses for local retail supply
It is getting harder and harder to safeguard local consumer supply - not only in rurally- structured areas, but also in urban areas of settlement. The growth of competition, as well as the effects of concentration and rationalisation, have led to trading enterprises' emanding higher standards in general conditions at local supply locations. A well-grounded location and feasibility analysis which includes (among others) the following work stages provides a basis both for examining potential economic viability and for possibly addressing an operator:
- Location description (description of the planned location and the situation in the relevant surrounding area), based on up-to-date, on-the-spot surveys
- SWOT analysis with detailed analysis of the location features for the planned utilisation
- Description and evaluation of the competitive situation in the catchment area, presenting the relevant data for each competitive location and an appraisal of its competitive strength on the basis of up-to-date on-the-spot surveys
- Possible market-oriented concept of the local supply product range (options if nec.)
- Delineation and zoning of the potential catchment area, and determination of the relevant socio-economic data (population, purchasing power level, purchasing power potential, etc.)
- Forecasting, including the development of population and purchasing power within the catchment area
- Analysis of the potential turnover to be expected at the planned object
- Summary of the analysis of the market and location situation
- Recommendations in connection with the possible realisation of a project (e.g. conceptual orientation, if nec. giving incentives needed or subsidisation required, and possible measures for optimising general conditions at the location)
If desired, we also put clients directly in touch with different operators of local supply locations (e.g. also as a basis for an investor or operator selection process).
Municipal Local Supply Plans
Against the background of the challenges of the on-going structural changes in retail trade, a municipal local supply plan serves to ensure long-term retail supply for people close to their homes.
The bases for the municipal local supply plan are comprehensive surveys and well-grounded analyses of the quantitative and qualitative supply structures within a town or municipality, whereby the higher-level competitive influence of supply locations in the surrounding region are also taken into account. Against this background, possible development options for areas of deficit are analysed, based on the latest findings on the location requirements of the relevant business types and on the location selection behaviour of the relevant operators, and market-viable measures to stabilise endangered locations are decided. The following shows the implemented work steps in detail:
- Definition and outline of product ranges which are relevant for local retail supply
- On the demand side: trends in the shopping behaviour of consumers, and developments in population and purchasing power
- On the supply side: trends in location development and bases for modern local supply
- Planning law instruments for safeguarding local supply
- The specific local settlement and center structure (description of town planning and general traffic conditions on the spot)
- Higher-level mutual competitive effects (relevant competing locations in the surrounding region, purchasing power movements beyond local areas)
- Analysis and evaluation of the retail trade product range relevant for local supply (surveys and mapping, analysis of stability and the development of relevant locations and business locations, causes of negative developments, etc.)
- Identification of any (sub-) areas with supply deficiencies (while taking the latest developmental trends into account, from both a current and a perspectival point of view)
- Analysis and ascertainment of possible development options for eliminating supply deficiencies and stabilising existing local supply locations (locations, areas of supply, concepts, operators, etc.)
- Formulation of the local supply plan (town or village planning objectives, a programme of measures to lastingly safeguard the local supply structure, location-related determination of potential economically-independent, viable local supply, as well as, if necessary, of potential alternative local supply, basic facts for appraising plans to establish new branches or expand businesses which are relevant for local supply, planning law measures, etc.)
If desired, we can also arrange for contact with operators of modern local retail supply businesses, provide expert reports to accompany a possible operator selection process, and offer the respective municipal actors expert support in specifically implementing the local supply plan.
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