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5 Benefits of Using Location Mapping in Retail
Blog / Prospecting / Aug 19, 2022 / Posted by Sales POP Guest Post / 33

5 Benefits of Using Location Mapping in Retail


Location mapping uses Location Intelligence (LI) technology to extract location-based data from consumers.

Since retailers get most of their business from local consumers, it’s important for them to know where they are and what they are buying. The process through which this data is extracted is called location mapping.

The retail industry had taken a huge hit during the pandemic but is steadily recovering now. No matter how much eCommerce grows, retail stores are here to stay. At the same time, retailers now have to compete with online stores to draw customers. Location mapping is one of the many ways to do so.

5 benefits of using location mapping in retail

Today we will go through 5 key benefits of using location mapping in retail. When used correctly, location mapping can change the trajectory of a business. Let’s find out more.

Here are 5 benefits of using location mapping in retail:

1.   Site selection

Real estate is expensive, be it commercial or residential. When you decide to open a retail outlet, the biggest expense would be rent. Despite paying hefty rents for a busy retail location, many stores do not get many sales.

Location mapping can help you identify the ideal spot for your retail store. Contrary to popular perception, the heart of the town or city may not always be the ideal site for a retail store. With location mapping, you can analyze the following factors:

  • Demographic traits
  • Population density
  • Competition density
  • Community-specific traits and patterns

Having access to this vast wealth of information means you would be better able to choose a site for your retail store. Location mapping can also help you find places with cheaper rent compared to high-traffic areas. It is all a part of maximizing available options to find the best match.

Location mapping even lets you study particular neighborhoods to assess buying and spending habits. Let’s take an example to better understand how it can be helpful:

Let’s assume you want to start a retail grocery shop. Now your selection should greatly depend on what the people in the nearby neighborhoods want. If there is a big Asian population in the neighborhoods, you would want to keep Asian condiments and spices.

Similar examples apply to other demographic factors. If there are kids in the neighborhood, you would want to sell kids’ items. This is how location mapping helps in choosing the ideal site for your retail store.

2.   Analyze customer behavior

Location-based data tells a lot about how specific customers behave. If a younger demographic is your primary consumer, you would be able to deduce it from their buying patterns.

For example, the buying patterns of college students living alone vs families would be quite different. Students would be inclined to buy smaller portion sizes and more grab-and-go items, contrary to the families.

Location mapping tells you what the buying behavior of consumers around your store is. It would help you in deciding the kind of products you want, the sizes in which you want them, and the average cost of items.

If your store is surrounded by high-income neighborhoods, you have to house a certain selection of luxury and premium items. If you are in a middle-class neighborhood, you would sell value-for-money items easily.

Analyzing customer behavior is essential to understanding what you should and should not stock. Location mapping is one of the most effective approaches to studying consumer behavior.

3.   Competition analysis

Retailers can lose business if they do not outsmart their competitors. You have to offer something over and above your competitors to get a share of loyal customers. It also means your store location should be better than that of your competition’s.

While location mapping will not give you access to competitor information, it will tell you where and what consumers are buying. This in turn will help you come up with a strategy to address the gaps.

Let’s take the example of clothing stores. If all the other clothing stores nearby sell high-end, premium labels, you can capture a chunk of consumers by offering cost-effective alternatives. The same goes for electronic gadgets, food items, and almost every other consumer item.

4.   Predict demand

Retail location mapping can also help you predict demand. While predictions are not always accurate, they give you a broader picture of consumer behavior and desires.

For clothing labels, predicting the trends of the upcoming season is crucial. Location mapping can help you do this by analyzing the kind of stores consumers around the area are visiting. You can then study the stores and their collections to better understand what customers are looking for.

The same goes for food items and nutritional supplements. Studies show that many people take on a fitness journey at the beginning of the year. You can analyze this pattern by seeing how many people are signing up for gyms and fitness classes. Then you can add specific items to your stock that would appeal to this motivated and enthusiastic group of buyers.

Using retail location mapping for demand prediction is one of the smartest ways of using this tech.

5.   Targeted ads

Targeted ads are not a new concept, but retailers often miss out on the perks of it. eCommerce vendors use targeted advertisements much more compared to retailers, mainly because it’s difficult for retailers to track the preferences of their buyers. That is where location mapping comes into play.

Location intelligence tells you what the buyers are doing when they are connected to the network but not using the internet actively. You can use their physical location to send specific promotional messages.

For instance, if you see your buyers frequenting book stores, you can add bookshelves and other aesthetic book storage items to your stock. Then you can send targeted ads for the same to the bookstore visitors.


With so many use-cases for retail location mapping, there are no reasons to not adopt it. Using this technology can be a game-changer for your retail business.

Author bio

Atreyee Chowdhury works full-time as a Content Manager with a Fortune 1 retail giant. She is passionate about writing and helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, travel, and experiment with different cuisines in her free time. You can follow her on LinkedIn.

About Author

These are Sales POP! guest blog posts that we thought might be interesting and insightful for our readers. Please email with any questions.


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