I have an important question to ask you.
How confident are you in your retail sales forecasting?
If you’re thinking “I’m very confident, Steven,” then I say great! But how accurate have your forecasts been? Especially for stores you’re planning to open.
As retailers work their way through the pandemic, and return to successful business openings, it’s never been more important for them to accurately forecast their retail store sales; not only in the coming year, but beyond. Additionally, it’s even more important to accurately project sales for new stores. Now rather than pose another question, what if told you something remarkable instead? Over the last 5 years, The Greenberg Group has accurately projected sales forecasts within 4.8% accuracy—that means our clients know how much sales to expect from a store location before they sign a lease.
Our Head of Market Research, Gary Bienefeld notes, “The Greenberg Group has provided sales forecasting as part of its real estate advisory services for clients for over 15 years. Our sales forecast models are based on custom drive time trade area analysis of client store financial performance. We develop two different models; a sales-based model created off the comparative performance of client stores vs. like performing co-tenants, and a drive time analogue model which calculates market share performance at drive time bands of key demographic performance drivers. Some of our models combine both methodologies.”
Mr. Bienefeld added, “As a result, on an aggregated store basis, our sales forecast models have resulted in projected sales variances to actual performance of within 4.8% depending on the sample size of the client store portfolio used in building the forecast models.”
Amidst the economic landscape of a pandemic, cautious expansion is prudent; however, there has never been a more opportune time to expand. You can read about what I’ve experienced in negotiations with landlords in this article.
I’m proud to say that our forecasting model has been essential in ensuring our clients achieve their required return on investment and four wall contribution.
For over 30 years, The Greenberg Group led the expansion of global and iconic brands like Lacoste, Gucci, Puma, Travis Mathew, Drybar, Crocs, Eddie Bauer, Roche Bobois, and many others. Using our proprietary method of analytics and research, we place our clients in locations that maximize retail store profits. If you’re interested in learning how The Greenberg Group can help your company in its retail expansion, call us at 516-295-0406 x 203 or visit thegreenberggroup.com to learn more.