Good Concepts Die When They Open in Poor Trading Areas.

Combining real estate professionals with a thorough integration of the internal and external data related to success and failure, RMS brings a higher level of understanding of what it takes to open profitable locations and manage your portfolio.

Our Hot Spot Models allow you to determine superior locations in a market for your concept and determine optimal build-out potential. Our Volume Estimation Tools focus on predicting volumes and ensuring your openings exceed success criteria. Our Site Driver Analysis provides guidance in the allocation of scarce capital expenditure dollars to improve return on investment (ROI) and identifies those stores that have reached the end of their economic life.

RMS provides your enterprise knowledge that leads to a plan for investment that will ensure success and helps you manage and direct your brokers as you grow.

Hot Spot Models

Point brokers to your best potential locations. RMS Hot Spot Models help you control your expansion by identifying the best locations to place units in both new and current markets. You can direct brokers to your preferred sites rather than having them show you their hottest prospects. Through statistical analysis of your existing operating stores, RMS develops screens of demographic, competitive, business parameters that lead to successful openings.

RMS will apply these screens to up to a million intersections to find those that are best suited to driving successful new openings. RMS also can assist in optimizing existing markets by uncovering the best locations that have not yet been developed, as well as examining markets for relocations and closures. Whether you are looking for direction in a new market, or a national expansion plan, RMS Hot Spot Models can provide a competitive edge.

Volume Estimation Tools

Accurate volume estimates are the difference between success and failure. Poor volume estimates lead to “10-year” problems. You cannot market you way out of a bad real estate decision. This is why RMS focuses not only on determining what demographic segment is important to your brand, but also the business, retailer generator and traffic counts which define success. Residential population typically explains only 40% of a retailer’s volume, and the balance is best explained by modeling other key trading area generators. Also, what is close to your site is more important than what is further away. We decay all population and generators to improve the accuracy of our models. Our econometric approaches can improve your success rates because we understand it is better to build conservative models of volume rather than averages. We provide estimates of the statistical probability that your proposed location will exceed volume screens.

Site Driver Analysis

When to invest and when to close are critical business decisions. Our clients often struggle with how to assess performance of their units. RMS Site Driver Analysis provides a roadmap to investment and closure decisions. Our analysis takes into account all key trading area, site and operational characteristics to build a model of performance. This performance model is then compared to actual sales to provide a roadmap to business decisions. We can direct investment to high volume and high potential locations, predict the optimum timing of reinvestment and remodels and identify low volume and low potential locations that should be considered for closure. It is as important to manage current locations as it is to open successful new units.