Foot Traffic Analysis for Strategic Expansion: A Data-Driven Approach

Did you know that almost 85% of retail sales still happen in-store despite the rise of e-commerce? 

There’s no question that foot traffic analysis is key to businesses planning expansion. Understanding how people move through and interact with physical spaces gives you powerful insights that can make or break a new location’s success.

So what is foot traffic, you might ask?

Foot traffic refers to the number of customers who enter a specific location over a given time period. By collecting and analyzing this data, you can gain valuable insights into customer behavior, peak hours, and potential revenue opportunities. This is critical when identifying potential expansion locations and minimizing risk.

In this article, we’ll review how foot traffic data drives expansion decisions, key considerations when analyzing foot traffic, and how dataplor’s comprehensive location intelligence can power your expansion strategy.

Foot Traffic Analysis for Expansion: Key Considerations

Before investing in a new location, understanding the existing foot traffic within that area is a must. Proper foot traffic analysis combines several key considerations to give you the full picture.

Identifying High-Traffic Areas

When analyzing foot traffic, volume alone isn’t enough. Businesses need to evaluate the quality of foot traffic and how it matches their target audience. 

For example, a luxury retailer might want areas with fewer but higher spending visitors over areas with high volume but lower spend.

To find high-traffic areas that match your business needs, consider:

• Daily and hourly foot traffic variations
• Seasonal patterns and trends
• Dwell time and engagement levels

Analyzing Nearby Businesses

Understanding the business ecosystem around potential expansion locations gives critical context to foot traffic data. 

A restaurant might benefit from being near entertainment venues that generate evening foot traffic. A coffee shop might thrive near office buildings with morning commuters.

When analyzing foot traffic around existing businesses, consider:

• Complementary businesses that drive shared customers
• Competitive density and positioning
• Anchor tenants that generate significant foot traffic
• Businesses with similar target audience

Evaluating Accessibility and Infrastructure

Even high foot traffic areas can underperform if they’re hard to reach. 

Foot traffic and location data about transportation options, parking availability, and pedestrian-friendly features give you critical context for foot traffic trends.

When evaluating accessibility through foot traffic data:

• Analyze how pedestrians naturally flow through an area
• Examine public transport proximity and usage
• Assess vehicle traffic patterns and parking availability
• Consider pedestrian infrastructure quality and safety

Stores on pedestrian-friendly streets often see more foot traffic than similar stores on car-dominated or traffic-heavy streets.

Leveraging Foot Traffic Data for Strategic Expansion Decisions

Now that you have a good understanding of the foot traffic considerations, here’s how you can apply the data collected to inform your expansion decisions and marketing efforts.

Market Gap Analysis

Analyzing foot traffic patterns reveals where people go—but also where they don’t go, and why.

By analyzing foot traffic across broader areas, you can find underserved markets with potential and gain valuable insights on the physical location worth considering.

For example, a retailer might use foot traffic data to find areas with high foot traffic but limited shopping options in their category. This gap is an opportunity to enter a market with established foot traffic and less competition with a better understanding of customer behavior.

Market gap analysis using foot traffic data should:

• Compare foot traffic density to existing service density
• Find areas where customers travel further for services
• Measure foot traffic leakage to other areas
• Assess campaign performance using store visits as a metric 

Competitor Analysis

Understanding how competitors perform at their locations is like an undiscovered gold mine for your expansion plans. By analyzing foot traffic at competitor locations, you can find models to copy and opportunities to differentiate.

Effective competitor analysis through foot traffic data involves:

• Comparing foot traffic volumes across competitor locations
• Analyzing peak hours and seasonal trends
• Evaluating customer engagement and dwell time
• Identifying underperforming competitor locations

Site Selection

The ultimate application of foot traffic analysis is to find locations for new stores or facilities. 

By combining foot traffic data with other location intelligence, you can calculate foot traffic potential and project performance for specific sites.

Effective site selection using foot traffic data should:

• Analyze historical foot traffic trends in the area
• Compare site performance to successful existing locations
• Project foot traffic based on nearby development plans
• Evaluate the impact of nearby store locations on each other

Combining Data Sources for a Holistic View

Foot traffic data is most powerful when combined with other data sources, like Point of Interest (POI) data, to get a complete picture.

For example, understanding foot traffic peaks around lunchtime near a cluster of office buildings differs from foot traffic at night near entertainment venues.

When combining foot traffic data with POI data, you can:

• Find which business types drive foot traffic in an area
• Understand the relationship between business mix and visitor patterns
• See symbiotic relationships between certain business types
• Project how new developments will impact existing foot traffic patterns
  

Internal business data takes foot traffic analysis to the next level. By comparing foot traffic trends to store performance metrics, you can find your ideal foot traffic profile and target similar patterns in expansion locations.

For instance, a quick-service restaurant chain might find that locations with steady foot traffic all day perform better than those with big peaks and troughs, even if the total foot traffic is the same. This would guide them to locations with more consistent traffic patterns.

Mobility location data adds another layer of insight to help you understand the customer’s journey before and after visiting a location. This data shows traffic patterns across the wider area, not just at the storefront.

dataplor’s POI Data: Fueling Expansion Strategies

dataplor’s location intelligence has the data you need to make informed growth decisions. 

With coverage across over 250 countries and territories, dataplor provides high-quality data on millions of points of interest worldwide.

What sets dataplor apart is our focus on data accuracy and depth. While many providers offer basic location data, dataplor provides:

• Verified and up-to-date information on millions of locations
• Comprehensive business attributes (hours, categories, contact info)
• Global coverage with consistent data schema
• Privacy-compliant mobility data
• Customizable data solutions for your business needs

This dataset allows you to use foot traffic data for growth planning. For example, a retail business expanding internationally can use dataplor’s POI data with foot traffic analysis to:

• Identify promising markets based on competitive density
• Analyze foot traffic around similar businesses
• Evaluate site accessibility and infrastructure
• Understand local consumer behavior and preferences

By combining dataplor’s POI data with foot traffic insights, your business has a powerful tool to identify trends and promote growth planning. This minimizes risk and maximizes success in new markets.

Expand Your Horizons with Foot Traffic Data

Foot traffic analytics has moved from manual counting to advanced data science that drives business decisions. By tracking foot traffic data across a broader geographical area and targeted locations, you can identify opportunities, reduce risk, and optimize your growth strategy.

The best growth strategies combine data sources—foot traffic patterns, POI data, demographic data, and internal business metrics—to give a complete view of potential locations. 

This goes beyond mere gut feel and into data-driven decision-making for maximum success. With dataplor’s global POI data and location intelligence, you can expand into new markets with confidence.

Ready to power your strategy with location data? Contact dataplor today to find out how our location intelligence capabilities can boost your business and help you find the perfect location for continued growth.