When you’re evaluating tens to hundreds of sites, you need to know what matters most and time is critical. That’s why we test thousands of variables to identify the top drivers of store performance, and then quantify them in a forecasting formula that balances site strengths and weaknesses. With knowledge gained, your site evaluation process becomes more effective and time efficient. In short, a good forecasting model is an extension of your own site evaluation methods, while adding compelling new insights.
When an under-performing location is opened, the capital costs are high and the revenue shortfall lasts the life of the unit. Unlike many aspects of performance which can be retooled, there are few solutions for a poor location. That’s why a reliable sales forecast is such a critical component of the P&L — without it the equation doesn’t work. By using statistical methods to quantify the impact of success factors and provide reliable site sales forecasts, our models improve the bottom line.
If you have an internal model but there is opportunity for improving accuracy, our modeling services can supplement your own research efforts. Tap into our extensive data sources and test thousands of variables you may not have had the time to test yourself. Since you own the model formula at completion, you can use it internally without ongoing licensing costs. You get the benefits of an in-house model combined with fresh insights that come from our deep expertise in site modeling.
“Quantitative Analysis has developed two models for our use – sales forecasting and cannibalization. The sales forecasting model has proven very valuable in our site selection process over the past two years and we look forward to the coming years as it grows with our business. The cannibalization model has also been a key factor in our real estate decisions for existing markets. QA is always quick with results, solid with the analytics and available to discuss next steps. It has been, and will continue to be, a great partnership.”
Ken Tunnell, Director of Real Estate, Performance Bicycle