Location Health Index

Analyse over 3,000 locations (including 700 shopping centres and 1,149 retail parks) across Great Britain through a combination of 12 dynamic data points, key in evaluating the performance and attractiveness of a location.

What are the 12 variables and how can they be customised to meet my objectives?

Catchment size

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Catchment spending power
Vacancy Rates

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Persistent vacancy

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Department store presence

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Anchor retailers present

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Anchor retailers arriving in the last 24 months
Anchor retailers leaving in the last 24 months
Competing centres score
The dwell time

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Cinema presence

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Charity shop presence
Click here to see how you can customise the Health Index

You can now customise the Health Index and tailor it for your specific objectives. Here are some of the ways in which you can do so:

  • Include or exclude parameters

    You can select which parameters to include or exclude from your Health Index score. For example you could include ‘charity shop presence’ in the index if this has an impact on the attractiveness of a location for your business.

  • Adjust the weighting of different parameters

    You can adjust the scoring range of any parameter which puts more or less weighing on that particular parameter. For example, vacancy is scored -10 to +10. This can be reduced to -5 to +5 or similar and will reduce impact of vacancy on the health score.

  • Include relevant anchor retailers

    Select which anchor retailers impact your Health Index score (these can be changed for retail parks, shopping centres and high streets). For example, if you know proximity to a particular retailer boosts performance of a location, you can add this into the health index.

  • Change the length of vacancy required to be 'persistent vacancy'

    The current Health Index score methodology identifies any units vacant for more than 1 year as ‘persistently vacant’. However this can be amended to any number of years required.

  • Occupancy time

    Adjust how the length of time of occupancy in a location impacts your Health Index. For example a location that has a high average vacancy time could be a sign of desirability.

  • Undesirable shops

    Add analysis of shops which are considered to be ‘undesirable’ or are known to have a negative impact on your locations into your Health Index. For example, if proximity to fast food restaurants impacts sales negatively for your business, this can be included in the index.

  • Drive time catchment for competing centres

    Adjust the drive time catchment area in which competing shopping centres or retail parks should influence the Health Index score. For example increase the catchment from 20-30 minutes to capture more competing locations that could make a location less/more ‘healthy’.

  • Include relevant department stores

    Include any department stores which are known to influence your locations and adjust the weighting of each different store (either positively or negatively).

  • Adjust the benchmark percentage of premium vs mass value offer for a location

    The benchmark percentage of premium vs value retailers in any location can be adjusted, according to relevance to your business. For example, a higher percentage of value retailers in an area may be beneficial for your business.

Retail & Leisure Occupiers use LDC’s Health Index to:

Understand

Understand the suitability of a location for a given brand

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Identify

Identify whether a location exhibits the factors which positively or negatively affect your store performance
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Analyse

Analyse the direction of travel of a location and whether it is strengthening or weakening according to those most pertinent variables to you store performance

With regards to the existing portfolio, LDC’s Health Index is incredibly valuable in identifying stores within your portfolio which are at risk, given the changes in that location. It can also flag stores in locations which are improving and therefore offers a unique overview of the portfolio and its relative strengths.

Then moving forward LDC’s Health Index is used by many occupiers to benchmark the potential of future locations. This index is an invaluable feed into any analogue or store forecasting model.

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Retail & Leisure Investors, Landlords and Asset Managers use LDC’s Health Index to:

Understand

Identify and understand the health and sustainability of assets whether they are part of their existing portfolio or potential acquisitions; matching specific investment criteria.

Identify

Identify strengths and weaknesses in and around the particular asset. Understand whether the asset is in a stable, strengthening or weakening location.

Analyse

Analyse the competitive landscape and understand the hierarchy of places. Compare and benchmark assets against portfolio regional and national averages

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LDC’s Health Index is a valuable tool that enables investors and asset managers to understand and track attractiveness and sustainability of assets over time. As a business you could build a company owned index which can be applied over 3,000 GB locations through the LDO platform, including town centres, shopping centres and retail parks. The ability to bespoke the health index allows for accurate assessment of investment/divestment opportunities in line company specific views and criteria.

The Health Index is assessed and updated on an ongoing basis (6 or 12 months) which allows investors to track continuous performance as well as understand risks and opportunities as they arise. Finally, the bespoke healh index capability enables you to benchmark your portfolio against sector averages, competing centres or a set of centres e.g. Top 100 Shopping Centres. This capability is often used to feed in external investment reporting.

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  • Through a combination of internal data, external demographics and LDC’s retail locations and footfall data Poundworld is building models for forecasting expected profitability as well as identifying suitable locations to deliver the required level of sales.
    Poundworld transparent background
    Kieran Gwynetter, Poundworld
    Property Analyst
  • The footfall data for my store has definitely helped me to understand the daily trends in the number of people passing outside. I tend to vary my opening hours, so this helps me to plan for coming weeks, and I’ll be focusing on this more and more in the run up to Christmas.
    Mdh sports
    Steve Allan, MDH Sports
    Owner
  • We can use the footfall data in conjunction with our sales figures to compare year on year and plan our staffing. It has been good to see that the days the shop is closed are actually the days when there is less footfall, so we were right in our opening hours decision all those years ago.
    Duncan Murray, Duncan Murray Wines
    Owner

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Track the impact of external activity and understand how location, people and environment drive sales.
For more information, you can also contact sales@localdatacompany.com