The Density Factor

Density is a powerful predictor of retail location.  Density supports greater degrees of specialization.  For example, Comcast Center has three times more density than the MSA boundary of Philadephia.  Retail brands include Accents by Govberg and L'uomo Men's Clothing.

The deeper dive is What effect does density have on location choices by retail store type and brand?

Mid-afternoon gathering at Havana Cigar Lounge, Old Market, Omaha, NE (Copyright 2014 Hoffman Strategy Group)

Mid-afternoon gathering at Havana Cigar Lounge, Old Market, Omaha, NE (Copyright 2014 Hoffman Strategy Group)

Density is a predictor of four general market conditions:

  • Retail merchandise quality
  • Consumer price-sensitivities 
  • Retail store profitability and profit margin
  • Retailer brand (i.e., national vs. local indie boutique)

Density delivers specialization for occupations and industries, too.  It is about net worth.  That is why, for example, investment banking primarily occurs in high-density cities like New York City, Los Angeles, and San Francisco.

Density, do you factor it in?  We do.

Jerry L. Hoffman

Hoffman Strategy Group LLC, 4424 Hallcliffe Road, Lincoln, NE, 68516, United States

Jerry L. Hoffman is owner of Hoffman Strategy Group LLC, a firm nationally known for strategic development, economic analysis, and market location consultancy.