White Space Analysis: How to Find New Location Opportunities?

Sometimes, growth opportunities are easy to spot through knowledge and intuition. For example, when customers are constantly requesting for a new store in an underserved area. Or when you find a great real estate opportunity right in front of you.

But sometimes, more in-depth research is required to find the areas where your business has the most growth potential, especially in highly competitive markets or when you already have several stores within your target area. This is where white space analysis comes in. White space analysis explores the gaps between your current products, services, or, in this case, locations to discover untapped opportunities.

“White space” refers to the opportunity itself – the area where a business can innovate, expand, invest, or acquire. It can be seen as an untapped potential with unexpressed customer needs and business opportunities. When you’re ready to grow your business, a white space analysis reveals your most promising chances for expansion. It’s all about filling in the gaps.

White space analysis using advanced data analytics

Different approaches to white space analysis exist, depending on your business needs and objectives. When discussing white space analysis for exploring new trade areas and implementing expansion strategies, using site selection tools based on GIS Mapping, foot traffic data, and Machine Learning can be the best option for a comprehensive market analysis.

The outcome of white space analysis, powered by advanced data analytics, is not just a rough estimate of untapped potential. It precisely identifies where this potential lies, from the number of locations a city, state, or country could support to the specific areas within these regions. This knowledge equips you with a deeper understanding of your business landscape, fostering confident decision-making and strategic planning.

Start visualizing everything on a map

The initial step in conducting a thorough white space analysis is understanding the overall market landscape, including details about your existing stores and competitors (In other words, having the “big picture”).

Moreover, it is essential to gather information about the sociodemographics of your target customers, as well as their mobility patterns and commuting times. These insights can offer valuable information about market behavior.

For example, you can start crossing different variables using heat mapping to spot valuable data, such as how mobility patterns affect the visitation volumes of your stores compared to your competitors.

Find locations where your potential users are

It’s important to note that any location you are not currently in can be considered a white space for your brand. However, it’s crucial to choose which opportunities to pursue strategically. Focusing on already-covered areas or examining unexplored new regions can make sense, depending on your business strategy.

As you analyze these possibilities, focusing on trade areas and locations with the highest demand is essential. One way to identify new “sweet spots” is by analyzing demographic and behavioral data to compare how your target audiences behave in different areas.

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