How GIS is revolutionizing the retail industry: benefits and practical applications

GIS data in the retail sector are revolutionizing marketing strategies by maximizing business efficiency and finding increasingly widespread and powerful applications that allow for the analysis of sites where new businesses can be established, optimizing shipments, understanding customers, and increasing their loyalty through targeted marketing activities.

In this article, we will explore the main uses of GIS data in the retail sector and the top 5 advantages.

First, I want to recommend a GIS asset management software that you will definitely want to implement in your workflow after reading this article!

But now let’s get to the point and analyze the world of GIS in retail together!

GIS in the retail sector: a complete overview and the top 5 advantages

To understand the benefits that the use of GIS brings to the retail sector, it is useful to emphasize how this type of activity bases much of its success on location and data analysis related to geolocation.

Much of the retail sector’s activities collect, analyze, and utilize the mapping of commercial activities and the critical analysis of their location to obtain the necessary context to promote efficiency, sales, and optimal facility management. The importance of the geographic information system in the retail sector is evident from the fact that many businesses have a team dedicated exclusively to the analysis and monitoring of location data. The analysis of the geographic information system (GIS) provides them with strategic information to:

• visualize and understand the market;
• understand customer behavior;
• understand the competition;
• determine where to grow their business;
• visualize and manage asset management operations.

Having provided this quick overview of the world of GIS applied to retail, let’s now look together at the top 5 advantages of this combination:

1. ease of customer identification: even if the product or service offered is appealing to the customer, if the location of the business is wrong or inaccurate, the effects on the business will certainly be negative. GIS mapping helps retailers identify the most suitable site for their specific activity by analyzing factors such as consumer demand and site traffic patterns, thus helping to drive sales;
2. identification of competition: the application of GIS in retail allows for the precise localization of competitors, providing a visual representation of their location and enriching the mapping with data related to the products and services offered, opening hours, marketing techniques, etc. Effective analysis of this information drives product development, promotions, and customer loyalty;
3. analysis of customer demographic data: understanding customers and their purchasing decisions is essential for increasing profitability and launching new strategies. To fully leverage the mapping capabilities of GIS, it is possible to associate basic customer information (demographic and residential information) with geographic and demographic data;
4. shipment management: through GIS, it is possible to efficiently manage and plan the schedule of arrivals and departures and many other aspects related to supply;
5. launch of targeted marketing campaigns: retailers that leverage GIS can create multidimensional representations of customer purchasing trends and, based on the analysis of these patterns, plan marketing actions aimed at increasing sales.

Exploring career opportunities: retail gis jobs in high demand

In the retail sector, as well as in many other sectors now based on data collection and analysis, there are increasing opportunities to specialize as a GIS professional and enrich other career paths with GIS skills such as data visualization and spatial analysis.

The professions potentially involved with GIS skills are certainly the most classic:

• project managers: use GIS to consolidate project phases and associated information in one place, optimizing resources and time;
• civil engineers: GIS helps civil engineers base their projects on the real-world context, integrating design and construction data from BIM and CAD with digital maps;
• cartographers: work closely with GIS to create accurate, interactive, and visually appealing maps and can go beyond mapping to include analysis;
• designers and planners: use GIS to create informed and sustainable development, modeling how buildings or interior spaces would appear in the real world.

In the retail sector, however, roles such as:

• communication professionals: maps are a visually appealing way to communicate plans and obtain feedback from groups such as city councils, business leaders, or the public;
• analysts and technicians: make sense of data to support decision-making processes. Technicians often participate in data acquisition, digitization, and analysis;
• data scientists: use GIS to incorporate spatial data into their analyses. They derive insights that can be used for market analysis, urban planning, logistics, and much more;
• developers: use GIS to create location services and mapping functionalities in products, solutions, apps, business systems, and websites.

Innovative GIS data applications in the retail industry

The potential applications of GIS in the retail sector are many and obviously vary based on the type of business and the objectives to be achieved. GIS can be used to identify the best site for opening a new business or to understand the reasons for a lack of performance of a certain point of sale. In short, the possible applications are endless, but let’s look together at the main ones:

• market research: knowing the customer is absolutely essential in a highly competitive market like today’s. The use of geospatial technology helps find answers to the most important marketing questions: where are my best customers? What are the best locations for my businesses? How do I analyze the purchasing preferences of my most loyal customers? The data collected and analyzed through systems allow for the creation of predictive sales models and anticipate the impact of new competitors;
• site analysis and planning: the digital transformation of retail requires a precise and timely strategy in which decisions regarding the possibility of expansion require data on mobility, consumer preferences, and locations with the greatest potential. Geospatial solutions allow for the discovery of new markets, acquiring competitive insights in the retail sector, enriching retail traffic analysis with geodemographic, socioeconomic, and consumer spending data;
• delivery and distribution: geospatial technology provides the tools not only to track shipments but also to design the most convenient routes, minimizing vehicle maintenance and carbon footprint;
• target audience analysis: to compete effectively in today’s highly dynamic market, retailers must break down the barriers between physical and digital channels and create the “endless aisle” experience so that customers can order online, in-store, or out of stock. In this sense, the implementation of GIS in retail allows for the analysis of transaction locations and verifies which channel is most used in order to enhance it and further customize the shopping experiences.

Applications of GIS in retail

To better understand the concrete impact of integrating GIS data in the retail sector, let’s look at a practical example of how these technologies can be used to optimally manage the assets of a large shopping complex.

Practical example of using GIS for integrated asset management of a shopping center

The integration between BIM (Building Information Modeling) and GIS (Geographic Information System) represents a significant breakthrough in asset management in the retail sector, providing a more holistic and optimized approach compared to the isolated use of these technologies.

The main advantages come from the synergy between the geospatial features of GIS and the detailed 3D modeling of BIM, which allows for the visualization not only of the location of the assets but also their condition, technical specifications, and their interaction with the surrounding environment.

In the example proposed below, a series of advantages of the BIM-GIS integration for managing the assets of a shopping center are evident:

• real-time management and visualization: the BIM-GIS integration allows for the visualization of all the assets of the shopping center (such as HVAC systems, elevators, electrical systems, etc.) on a georeferenced 3D map. This provides a real-time view of the entire complex, enabling facility managers to quickly locate the elements that need attention. For example, through the connector usBIM.facility, it is possible to overlay the BIM data of the assets on a GIS map to see their exact location and immediately access information about their conditions, scheduled maintenance, and intervention history;

Details of an asset | usBIM.facility

• better maintenance coordination: thanks to the BIM-GIS integration, asset maintenance has significantly improved. Each asset can be monitored based on its geographical location and construction specifications, making it easier to schedule and optimize preventive maintenance interventions or corrective maintenance. With the combined view of BIM and GIS data, it is possible to schedule interventions while minimizing the impact on the daily activities of the shopping center. This reduces downtime and ensures greater operational efficiency.
• optimization of intervention routes: another major advantage of BIM-GIS integration is the ability to optimize intervention routes for maintenance teams. Thanks to the geospatial visualization of assets and surrounding infrastructures, it is possible to plan the shortest and most convenient routes for repair personnel, saving time and resources. For example, with the help of the usBIM.facility connector, maintenance tickets can be filtered and visualized directly on the 3D map, allowing for quick and precise management of intervention priorities;

Filtered visualization of the IFC model for tickets

• better asset lifecycle analysis: the integration of BIM and GIS allows for much more precise asset lifecycle management. From the design and construction phase to operational management and maintenance, BIM data provides detailed information on the physical and technical characteristics of assets, while GIS data provides the spatial context. This combination enables better forecasting of asset replacement and repair times, improving long-term planning and reducing management costs.
• integration with virtual reality (VR) and other advanced technologies: with usBIM.geotwin, it is possible to use VR to virtually immerse yourself in the shopping center and manage assets interactively, visualizing structures and planning interventions in a three-dimensional space. This approach not only makes asset management more intuitive but also enhances collaboration among the various teams involved in maintenance and management.

Watch the video to explore the importance of the integration between BIM and GIS for managing a shopping center and discover how it represents a true competitive advantage.

Maximizing efficiency with GIS data for retail companies

GIS data and the processing of informational models based on collected data represent a powerful tool in the hands of retail facility managers. The importance of correctly analyzing this information means that many retail activities recruit a specific team of analysts tasked with analyzing sales and customer trends, the most successful sites for launching new activities, and the main competitors. Geolocation and geocoding are also essential for satisfying customers with precise and timely deliveries.

Geospatial data is also crucial for improving marketing and merchandising strategies. It may not be immediately obvious, but based on the analysis of GIS data and the location of individual activities, the store layout can differ from one place to another to encourage customers to move along a predetermined path.

Market analyses conducted over time have also shown that the use of GIS data is an indispensable tool for multichannel activities that offer customers different shopping experiences and opportunities. For example, it has been demonstrated that opening a new physical store leads to an average increase of 37% in online purchases. This means that the in-store experience contributes to online shopping and vice versa. This would not have been easy to detect and interpret without GIS, which is essential for maximizing business efficiency!

It is also worth noting that the integration of different technologies leads to even more evident results, as seen in the perfect synergy between BIM and GIS. This combination of two powerful systems offers a holistic and detailed view of projects and activities, providing significant advantages throughout the entire lifecycle of an infrastructure, building, or retail activity.

At this point, I can only recommend implementing a GIS asset management software in your workflow that allows you to clearly and detailed visualize the location of your assets, collect data, monitor performance, and obtain necessary information in real-time to optimize intervention teams’ routes and costs.

You can use usBIM.geotwin viewer (FREE) without time limits with the provision of 1 map and 2GB to upload BIM models, point clouds, and other map content!