Unlocking ROI: The Benefits of Data-Led Location Strategy in Retail

Location strategy is no longer just a “nice-to-have” for retailers—it’s a game-changer. With the right geospatial insights, businesses can make informed decisions about where to invest, optimise, or pivot. The result? Higher returns, lower risk, and strategies that deliver measurable success. At h3hex, we know that location decisions are about balancing opportunity with precision, and the benefits far outweigh the investment required. Here are three real-world ROI scenarios that bring this to life.

Example 1: Identifying a High-Potential Market

Imagine a mid-sized home furnishings retailer looking to expand in a competitive suburban area.

Scenario A: Intuition-Based Decision

The retailer chooses a site based on high street visibility and an above-average footfall count, investing £500,000 in fit-out and launch. But six months in, revenue is 15% below target. Why? They overlooked nearby competitors and the lack of parking—key factors for their target audience.

Cost of Getting It Wrong: £75,000+ annual losses, resources tied up in a poor-performing location.

Scenario B: Data-Led Location Strategy

By partnering with h3hex, the retailer analyses footfall patterns, competitor density, and consumer demographics. A different site—slightly further out—emerges as optimal. It’s near a commuter hub, has better parking, and an underserved audience. The store hits its revenue target within 3 months, with 25% YoY growth.

ROI: £125,000 profit uplift in Year 1 alone, recouping the initial investment faster.

Example 2: Avoiding Cannibalisation

A café chain wants to open a new store in a busy urban area with strong demand for coffee.

Scenario A: Overlapping Markets

Without data-led analysis, the new location is only 1.2 miles from an existing store. While the new café performs well, the original location sees a 20% drop in sales due to cannibalisation.

Cost of Overlap: £50,000 loss in annual revenue from the original store, offsetting the new site’s gains.

Scenario B: Strategic Site Selection

h3hex’s geospatial insights pinpoint a different area with a growing daytime population and no direct competitor. The new store generates a £200,000 revenue boost, with zero impact on the existing store.

ROI: £150,000 net revenue gain across the network.

Example 3: Optimising Proposition for Local Demand

A clothing retailer plans to open in a city-centre location but isn’t sure how to position the store.

Scenario A: One-Size-Fits-All Approach

They replicate the same product mix as other stores, focusing on family essentials. While traffic is good, sales are slow—the area attracts young professionals who prefer trendy workwear and leisurewear.

Missed Opportunity: £100,000 potential revenue lost by misaligning with local demand.

Scenario B: Tailored Proposition Using Data

With h3hex’s data-led approach, the retailer analyses local demographics and spending patterns. They adjust their proposition to focus on workwear, driving sales up by 35% compared to comparable stores.

ROI: £75,000 incremental profit in the first year, all thanks to aligning the offering with the market.

Why Data-Led Location Strategies Deliver Such High ROI

Retailers often think location strategy and geospatial analysis are expensive luxuries. In reality, they’re low-cost investments with massive upside. At h3hex, our expertise ensures you gain clarity on where and how to grow, with actionable insights that minimise risk and maximise reward.

From avoiding costly mistakes to unlocking hidden opportunities, the ROI from data-driven solutions isn’t just impressive—it’s essential. For every £1 invested in our expertise, you could see £10 or more in return. Can you afford to keep relying on guesswork?

Let h3hex help you make smarter decisions that pay off. Contact us today to turn your data into results.