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It's nothing new to discover that retailers use software technology to pinpoint future locations for expansion, but The Boston Globe looked into the matter recently and uncovered some interesting information—particularly from Bluemercury founder Marla Malcolm Beck. Stationed nationwide, the slew of companies offering these geo-targeting services to companies work off information built around demographics, the sales of existing store locations, what an area spends money on, and so on. The investment in this information isn't always cheap, but it certainly streamlines the scouting process.
Beck, a Harvard Business School graduate, combined experiential retail knowledge with the software's suggestion to open a Newbury Street location in choosing a space with an entrance at street level. Regarding the benefit of vetting out expansion options, Beck told the Globe: "It tells you where to focus your energy. Now we're spending our time in Boston instead of a state like Tennessee." Also discussed in the article are Dunkin' Donuts, Petco, and Starbucks—much larger companies experiencing similar success with this kinds of software on a grand scale.
· Retailers tap software to pick best locations for new stores [Boston Globe]
· Bluemercury Spotted on Newbury [Racked Boston]