R.L. Polk can offer a variety of information to aid in Home Store’s site location decision.

However, this proposal will focus on the customer-origin analysis performed with Polk’s MAS2 software system. Knowing where your customers come from (or will come from) is the most fundamental step in retail market analysis.

MAS2 is a pc-based mapping software system which determines retail trade areas and market share over an entire market: for a client’s stores and its competitors.

It is not a demographic system – the software works with customer data derived from sales records or licence plate surveys.

The MAS2 analysis described below is a three-step process.

1) Analyzing the current location

The first step in the MAS2 analysis is to determine the customer distribution pattern and trade area for Home Store’s existing outlet.

This will show the trade area size that any new site will likely require and will also indicate whether there is room within the Toronto market for a second store.

MAS2 can carry out this analysis based on a sample of six-digit postal codes taken from customer records. This data can also be categorized: for example, it is possible to compare the different trade areas formed by high-spending versus low-spending customers.

2) Analyzing the marketplace

The second step in the MAS2 analysis is to carry out licence plate surveys of competitors’ stores.

By analyzing its competitors’ customer distribution, Home Store can determine ‘gaps’ in the marketplace, as well as consumer travel patterns and traffic flows.

This licence plate data can also be weighted using the estimated sales of competitors’ stores. This allows MAS2 to estimate the total sales coming from any specific area (i