Analysis on Location Selection for Retailers Based on GIS

By analyzing the factors of location selection, this essay provides a scientific foundation for location decisions in China's retail industry, on the basis of geographic information system technology (GIS), together with business circle analysis and location selection model. By system modules and functional applications of GIS@RetailV2.0 software, a preliminary exploration of the location selection has been made for retailers based on GIS. Compared with other industries, the operating situation of retailers greatly depends on the correct choice of the store's location. However, in the strategy combination of retail chain, the location is the worst element of flexibility, with a very high risk, which is almost impossible to change once the store is determined. Unlike the other elements, such as product, price, distribution network, sales promotion, advertising delivery, customer service, which can change with changes in the external environment, once any mistake appears in location, there is no chance to adjust. However, it is pointed out without regret that the success rate of the domestic retail site selection has been relatively low. There are so many examples of business failures caused by the failure of the location selection. As traditional retail location primarily based on statistical static model, and even experience and intuition alone, which can not be quantified, but also lack of scientific evidence, it can not guarantee the accuracy of the location. Therefore, in the current increasingly competitive situation of retail industry, there's an urgent need of new technology to support and improve the success rate of location selection. As GIS technology gradually be applied to site selection, with the retail location factor analysis, combined with GIS spatial analysis and revenue forecasting capabilities, which makes it possible to achieve the purpose of visually effective solution to the problem of the retail location.