Want to boost your retail strategy? Start with a location-based SWOT analysis. It combines location data with traditional SWOT (Strengths, Weaknesses, Opportunities, Threats) to help you choose the best retail sites and make smarter decisions.

Why it matters:

• 90% of sales still happen offline, making location critical.
• 74% of retailers value location data, but only 45% use it effectively.
• Insights like foot traffic data, demographics, and competitor mapping reveal hidden opportunities.

Key steps:

1. Strengths: Analyze foot traffic, accessibility, and customer loyalty.
2. Weaknesses: Spot issues like poor parking or mismatched demographics.
3. Opportunities: Find underserved markets and growth areas.
4. Threats: Monitor competitors and market risks.

Getting started with retail location data

Essential retail location data

Good location data is the backbone of retail SWOT analysis. Here's a breakdown of the key types of data and their uses:

In 2021, brick-and-mortar sales grew by 8.2% year-over-year, and planned store openings doubled closures. This highlights the continued importance of physical retail. The next step is identifying tools that turn this data into actionable insights.

What is foot traffic data?

​Foot traffic data is information that monitors consumer movement patterns in and around physical locations. This data includes metrics such as peak visiting hours and dwell times. By analyzing these patterns, retailers can optimize store layouts—including Point of Sale positions—and staffing levels to enhance the consumer experience and operational efficiency. Additionally, foot traffic analytics assist in assessing potential locations for new stores and tailoring marketing efforts to engage customers effectively. ​

Step-by-step SWOT analysis

This section focuses on improving your retail strategy by turning location data into practical insights through a structured SWOT analysis.

Measuring location strengths

Evaluate your location's strengths using measurable data from advanced geospatial tools:

For example, Echo Analytics' foot traffic data shows that longer customer dwell times often lead to higher conversion rates. After identifying strengths, the next step is to uncover potential issues with the location.

Finding location problems

Pinpoint weaknesses by addressing possible barriers:

Infrastructure challenges

• Check parking availability and traffic flow patterns
• Review loading dock access and delivery routes
• Assess visibility from main roads and pedestrian pathways

Demographic misalignment

Performance may decline if your store's demographics don’t match your target audience. For instance, New Balance saw a 670.94% increase in driving direction requests after improving store visibility.

Finding market gaps

Once weaknesses are identified, the focus shifts to finding market opportunities. Market gap analysis using location data includes:

• Trade area analysis: Use GIS tools to map out your retail coverage and locate underserved areas. For instance, Esri’s ArcGIS platform lets you evaluate entire global regions for market analysis and site selection. 
• Competitor mapping: Leverage Echo Analytics’ cross-visitation data to understand where your customers also shop, which helps identify both competitors and complementary businesses.
• Growth potential: Study demographic trends and local development plans. Lewiatan, a retail chain in Poland, used location intelligence to target high-growth areas, leading to a 140% jump in direction requests.

Retail competitive intelligence data

After identifying gaps, assess competition and potential risks:

Competitive pressure

• Map competitor locations within your trade area
• Analyze their foot traffic patterns and peak hours
• Track cross-visitation rates to understand customer behavior

Market volatility

Monitor key metrics over time, such as foot traffic trends, consumer spending habits, and local business turnover rates. Decathlon’s approach is a great example—by conducting detailed competitor analysis, they boosted their Google visibility by 179% through data-driven location strategies.

Making data-driven decisions

Creating action plans

Use the insights from your SWOT analysis to create prioritized action plans, focusing on their potential impact and the resources you have available.

For instance, a small consultancy used its agility and technical know-how to focus on rapid-response services. By strategically investing its limited advertising budget in industry-specific platforms, they effectively targeted their core audience while addressing challenges tied to their smaller size.

Ensure these efforts remain effective by regularly updating your data to reflect ongoing market changes.

Regular data updates

Keeping location data and other critical information current is essential for staying ahead.

Here are some effective ways to maintain data relevancy:

• Choose reliable data partners: Make sure the data partner you work with refreshes its datasets frequently to guarantee that the location information is relevant. 
• Monitor competitors: Forbes highlighted how a retailer implemented competitor price tracking, which helped them develop better dynamic pricing strategies based on actual customer behavior. The same idea can be applied to location data on competitor performance from cross-visitation, store locations, and foot traffic numbers.
• Update Market Analysis Regularly:
  
  • Monthly foot traffic analysis
  • Quarterly demographic reviews
  • Semi-annual competitor assessments
  • Annual SWOT refresh

Leverage providers like Echo Analytics and our cross-visitation data to quickly identify shifts in customer patterns, ensuring your strategies evolve alongside market dynamics.

Conclusion

Main points review

Location-based SWOT analysis plays a crucial role in assessing sites and improving business operations.

Echo Analytics solutions

Building on location insights delivers solutions tailored to retail requirements.

With 80% of purchases still happening in physical stores, retailers need strong location intelligence. Echo Analytics' data empowers retailers to:

• Track customer movements to design optimal store layouts
• Analyze cross-visitation patterns to grasp competitive dynamics
• Define catchment areas for targeted marketing efforts
• Adjust operating hours and staffing levels for efficiency

Considering how quickly geospatial data can change, Echo Analytics ensures retailers stay ahead by providing regular updates. This allows businesses to adapt to market shifts and maintain their competitive edge.