Enhancing Retail Location Decisions in City of Brno: An Application of Geospatial Analysis Tools

analytical hierarchy process, decision support system, geo-visualization, kernel density estimation, location-based decision-making, open data, retail site decision process

Location plays a key role in the success of a business. No amount of property features such as building, decorating, or price can overcome the negative impact of a poor location. A strategically positioned business not only reduces financial risks but also enhances the likelihood of achieving success. This work aims to develop a user-friendly information system to assist retailers in making informed location decisions. The system utilizes a well-known methodology based on Kernel Density Estimation, evaluating geo-demand and geo-competition, and the Analytical Hierarchy Process to determine a suitable location. The results are presented on the open datasets provided by the City of Brno, the second largest city in the Czech Republic. It allows users to choose between 84 types of business and display precalculated heatmaps of hot spots representing areas of a high range of commercial services. Then, the users are provided with the tool to evaluate their own locations of interest based on their own defined criteria. The results demonstrate the practical use of theoretical methodology with real data, evaluating its usability and performance aspects.