• Lot size should be 2.0 acres or larger for development lots • 17,000+ square foot buildings with a minimum of 85 dedicated parking spaces • Signalized, full-access intersection preferred • Trade area population of 35,000+ within 3 miles, cities of 20,000+, counties of 40,000+ • Sites located in community and regional shopping districts with convenient access to population 18. Cozy and Comfortable 33.8 years old - nearly matches http://www.esri.com/~/media/Files/Pdfs/data/esri_data/pdfs/tapestry-singles/segment18.pdf occupy up to 75,000 square feet of anchor space. The Middletown Shopping Center is located at the
Transcript
Where to Open Grocery Store in Philadelphia
A Retail Site Selection Analysis in the Philadelphia Metropolitan Area
Xin ChenLARP 745 Advanced Topics in GISMUSA CapstoneProfessor Dana TomlinSpring 2014
Population Density Top 5 Tapestry Segment in Drive Time Areas
Spending Potential-2013 Median Disposable Income
Market Potential-Expected Number of Households
Drive Time Trade Area of ALDI Stores in Philadelphia Metro-
Potential Zone
Shopping Center Analysis
Recommended Site:MiddleTown Shopping Center
Mapple CrossRoads SpringField Mall
Potential Zone
Recommended SiteMiddleTown Shopping CenterHotSpot Analysis of Expenditures + Customer Prospecting Analysis Simple Hu� Model of Selected Shopping Centers
Grocery Store Chains
Top Three Competitors
ACME
Genuardi’s
Wawa
Proximity Analysis
Food Spending Map
Potential Zone
Core Group Segmentation Penetration Core, Developmental, and Niche Map
Leakage/Surplus Analysis
Granite Run Mall
A simple Hu� Model is used for MiddleTown Shopping Center, and three other near stores. Though the Middle TownShopping Center is not the most competitive one among the four, the shopping center is much newer than the other three. The Leakage/Surplus Analysis indicates that the MiddleTown Shopping Center is located in the 0 to 50 zone, which means the retailers are more likely to have more supply than demand.
HotSpot Analysis reveals on the left the spatial distribution of the expenditures. The darker areas means customers are more likely to spend more on certain goods. Potential new store should open in such zones. Customer Prospecting Analysis on the right is to shop which zip code areas have above average number of households, which are the primary target customer for grocery stores. The Composite Map overly points out potential areas which may be bene�cial for opening a new ALDI grocery store.
Composite Map
Market Analysis focuses on the pro�ling the target market for grocery store. The 2013 median disposable income map indicates which areas have higher disposable income which is more likely to spend on grocery.
The Expected Number of Households map tells where target customers are located. New stores should be located within higher expected number of households areas. The decision should also think about existing shop-ping centers, and existing ALDI stores.
The food spending map supports the results of disposable income map since most of the high concentra-tion areas are the same.
As a result, based on the market analysis, we can narrow down potential new store zones.
Segmentation Analysis is highly important since it tells the characteristics of potential customers. Core Segment means a high percentage of the customer base. Customers fall in the Core Segment do not only make up a large percentage of the customer base, but also have higher index to become the customers will shop in the ALDI stores. Customers in this segment also make up a larger percentage of the customer base than the percentage that they make up of the market area. These segments are the primary target since they represent loyalty and good opportunity.
Development segments are the segments that make up a signi�cant percent of customers and of the market area. However, it has lower index. The development segments are important because they may represent a signi�cant portion of customers that have not yet been reached. The could be potential loyal customers.
New stores should locate near core, and developmental segments areas since new stores need stable customer base and potential customer market for reaching out.
Competition Analysis shows direct and indirect competitors for ALDI.
Based on the Proximity Analysis, ACME, Genuardi’s and Wawa are the top three competitors for ALDI grocery store.
Based on the map, we can tell that the three stores are located very near to ALDI.
Unlike national supermarket chain stores such as Walmart, the ACME, and Genuardi’s are regional supermarkets.
Mission Statement My project aims to implement grocery site selection methodology via ArcGIS Business Analyst in Philadel-phia Metropolitan Area. The project studies discount grocery store ALDI n order to examine the methodology.The ultimate goal is to serve as a universal approach to develop grocery store business.
Based on my research, I found there are some criteria regarding site selection on ALDI Website. • Lot size should be 2.0 acres or larger for development lots• 17,000+ square foot buildings with a minimum of 85 dedicated parking spaces• Signalized, full-access intersection preferred• Trade area population of 35,000+ within 3 miles, cities of 20,000+, counties of 40,000+• Sites located in community and regional shopping districts with convenient access to population5,10,15 minutes drive time trade area of existing ALDI Stores are generated for analysis.
54. Urban Rows (Core)
24. Main Street, USA (Developmental)
13. In Style
10. Pleasant-Ville
18. Cozy and Comfortable
33.6 years old - slightly younger
$34,356 - Lower than average
White-collar occupations (50%)
33.8 years old - nearly matches national median
$57,196 - higher than average
Attended College (50%)
40 years old - slightly older
$70,745 - higher than average
Bachelor degree or higher (42%)
40.4 years old - slightly older
$70,930 - higher than average
Variety of occupations in diverse industry sectors
High Tra�c Intersection with 27,759 Volume Per Day
Exceptional Access and Visibility High Barriers to Entry Market
Ample Parking
Attractive Demographics
Bedroom Community to NYC Commuters
The Middletown Shopping Center will undergo a multi million dollar redevelopment to include: the expansion of various retails spaces, a full facade renovation with enhanced architectural elements, signage improvements and landscape upgrades. WRDC is currently seeking multiple national retailers to occupy up to 75,000 square feet of anchor space. The Middletown Shopping Center is located at the signalized intersection of Route 35 & New Monmouth just o� the Garden State Parkway.
The shopping center does not have any major grocery stores, or super markets. In addition, the highlights of the shopping center meet the ALDI site selection’s criteria.
Based on the population density map, Philadelphia is the most dense and populated area in which has the majority stores. However the Wilmington DE seems to have population potential for a new ALDI store.
The population of the trade areas is about 75% of the total population in the study area. The 2013 median house-hold income, and owner occupied housing units are slightly below the study area.
The median age of the trade area is 37.2, and White is the majority. The annual population, and households grow rate is higher than the state level but below the national level.
