Dissecting Point of Interest Data: A New Approach to Retail Location Strategy

October 13, 2023
6 mins read
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In the rapidly evolving retail ecosystem, utilizing data intelligently has become a seminal factor in successful business operations. One data source that often goes overlooked is Point of Interest (POI) data: a rich vein of information with the potential to revolutionize retail location strategy. POI data, with its multi-faceted insights into consumer behavior and regional characteristics, equips retailers to make astute, evidence-based decisions on outlet locations. This article aims to demystify the intricate applicability of POI data in propelling a retailer's success and uncover the treasure trove of opportunities it encapsulates. Dive into this riveting exploration of how retailers can leverage POI data to optimize their location and elevate their commercial performance.

Understanding the Retail Landscape: An Introduction to POI Data

POI data can help retailers identify areas with high foot. The retail landscape is a dynamic and challenging environment, being continuously reshaped by shifts in consumer behavior, market trends, and advances in technology. Amid this profound transformation, data, specifically Point of Interest (POI) data, is emerging as a critical factor in shaping retail location strategy.

Commonly referred to as POI data, these digital markers capture defining characteristics about specific geographical locations, forming a rich tapestry of commercial insights. From a retail industry lens, POI data represents a blend of geographical, demographic, infrastructural, competitors', and consumer preference information collected about a certain location.

Consider this analogy: If the commercial world is a chess board, then POI data is the knowledge about the positions, attributes, and potential moves of each piece on the board. This brilliance doesn't merely aid in understanding the current positioning but also helps predict future movements.

Why POI Data is Vital to Retail Businesses?

Retailers using POI data have experienced a 15% decrease in customer acquisition costs. This is where POI data enters the picture. In its essence, POI data enables retailers to align their physical presence with the highest potential consumer bases.

It unravels critical market insights about local footfall traits, proximity to competition, demographic nuances and, critically, potential customer behaviors and preferences. This resourceful amalgamation of data can spotlight key areas of opportunity and can significantly inform strategic decision-making procedures.

The right location can make a business, while the wrong location can break it.
- Peter Diamandis

In a data-driven commercial world, the importance of utilizing POI data in retail location strategy cannot be overstated. It supports an imperative transference from a blanket, intuition-based strategy to a sound, data-informed approach that can yield significant competitive advantages.

How to use POI data for Retail Location Strategy?

In the competitive realm of retail businesses, location is a crucial determiner of success. Utilizing Point of Interest (POI) data – highly precise location data that indicates the exact geographic coordinates of buildings, stores, or shops – can carve a path toward an efficient retail location strategy. To fully utilize the strategic potential of this data, four key areas can be explored: Market Analysis, Positioning, Foot Traffic Analysis, and Layout Planning.

Market Analysis

As a fundamental step for any business strategy, market analysis denotes an objective examination of consumer needs within a specific location. By utilizing POI data, retailers can better comprehend the population demographics, existing competition, and potential demand within a designated area. This type of data-intensive analysis aids in minimizing risk and establishing expectations for potential revenue within a proposed retail location.


POI data is also instrumental in positioning a retail outlet strategically. In the pentagon of retail - the competitors, allied businesses, infrastructural facilities, and key landmarks - a good understanding of the lay of the land can be remarkably critical. If the objective is to seize market share, no retailer can overlook this aspect. The retailers must know how proximate they might be to their closest competitor, the tenure of that competition in the market, and the types of complementary businesses surrounding their location.

Foot Traffic Analysis

Comprehending foot traffic – the number of individuals frequenting an area – is another important aspect where POI data can prove valuable. This data can reveal key insights about customer behavior patterns, most frequented times of the day, and demographics of the visiting population. The in-depth analysis of this information can consequently influence decisions regarding store hours, staffing needs during peak hours, and effective marketing strategies to attract the right demographic.

Layout Planning

At a granular level, deploying POI data can allow retailers to construct intelligent store layouts that capitalize on revenue-generating opportunities within the in-store customer experience. By thoroughly analyzing the building footprints, retailers can configure their product placements, aisle spacing, and checkout areas in a way that maximizes customer engagement and ultimately, sales.

The right location can attract customers like a magnet.
- Ron Johnson

Cracking the Code: How xMap's POI Data Can Optimize Retail Performance

Before one can fully grasp the impact of xMap's POI data on retail performance, a clear understanding of the nature of this data is basal. Essentially, POI data encapsulates geospatial information about specific locations that can be leveraged by businesses. The form of this data can diverge, ranging from the coordinates of a location to rich information about the environment of the location.

xMap specializes in collecting and normalizing this critical data for retail purposes, proving to be a game-changing strategy. This task is intensive and requires a rigorous approach but the outcomes yielded, in turn, are commensurate with the effort.

The Fourfold Strategy

This is how businesses can leverage xMap's POI data:

  1. Assessing Market Dynamics: The first step in any retail strategy is understanding the market landscape. With the aid of xMap's POI data, retailers can get invaluable insights into market behavior. This could be related to competitor location assessment, encompassing in-depth analysis of the retail landscape, hence aiding them in aligning with mission-critical KPIs.
  2. Optimizing Retail Locations: The POI data can assist retailers in locating the most promising commercial properties in various sectors. By analyzing this data, retailers can ascertain optimal locations that not only yield maximum foot traffic but also align well with their target demographic.
  3. Running Targeted Promotions: With the aid of xMap's geospatial data, retailers can plan and implement targeted promotions. These marketing efforts, using geo-targeting and geofencing technologies, can be far more effective and yield much better results than conventional strategies.
  4. Enhancing In-store Experiences: Lastly, POI data can enhance in-store experiences by helping retailers understand and cater to the demographic preferences of each of their physical locations. This could include fine-tuning the product range or customizing in-store communication.


In conclusion, retail companies can substantially improve their location strategy by harnessing the power of Point of Interest (POI) data. Utilizing this cutting-edge approach enables retailers to identify the most profitable site locations, enhancing their competitive position and bolstering their bottom-line performance.

One remarkable tool that can greatly aid retail businesses in collecting and analyzing POI data is xMap. xmap is a powerful geospatial platform that not only provides access to vast amounts of location-based data but also offers advanced analytical capabilities. It empowers retail businesses to process and understand large volumes of POI data promptly and effectively. By leveraging xmap's superior functionality, retailers can gain valuable insights into consumer behavior and preferences, thereby refining their location strategy and significantly improving their market positioning.

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