Retail World

Footfall traffic


Knowing the exact number of people who pass daily in front of your store is very important information: it allows making estimates on profitability and, consequently, to calculate the total gains of the business. Also, knowing the pedestrian traffic of a certain location can help understanding which is the perfect one to open your next store.

If you are interested in the world of retail, this article will show you the reason why knowing the number of people passing in front of your store it’s fundamental to check its profitability.

Which is the most important factor for a retailer? Location, of course!

One of the main dilemmas of opening a store is choosing the new location: how to select one? According to what factors? How is the perfect location for our kind of store?

Obviously, the best position to open a physical store will be in a street with a very high flow of people walking: the higher the pedestrian traffic, the more possibilities there will be to fill the shop with potential customers, which translates into increased sales.

Which is the relationship between pedestrian traffic and the cost of the rent?

Opening a store in an economic, but not commercial, street could turn out to be a real mistake: if on the one hand we save some money on a fixed expense, on the other hand, a non-existent pedestrian flow means zero sales, and therefore, no income.

Rents in commercial streets are usually higher than those of secondary roads, but it is precisely here that the Cost per Potential Customer comes into play:

“measuring the cost of rent per square meter and dividing it by the number of people passing by at the store, we get the price we are paying for every person passing in front of our windows store”.

This data can be useful for:

  1. Retailers who want to open a new store, as they can do a study of different locations based on pedestrian traffic and the CCP.
  2. Retailers who want to know if the price they pay for rent is related to the number of people who pass in front of his point of sales (perhaps, they are paying a much higher cost per potential customer than it should be).

Also, not all streets have the same turnout: suppose that there is a school or a very crowded metro station, and we want to open our shop right here, because it’s a very busy road all day, every day.

Once opened, however, we realize that not so many people actually enter the store, all because we are on the wrong side of the sidewalk. The same is true in a shopping centre: the flow of pedestrian will never be the same for every floor or area of the centre.

So, why counting people?

The data of the number of people passing in front of your stores are the first indicator of relevance: knowing pedestrian traffic allows you to have a real view of the attractiveness of your business and therefore make decisions based on sensitive data.

To know the number of people walking on the sidewalk of a specific street, there are technologies such as, for example, TC Street, with over 20,000 sensors installed all over the world, thanks to which it is possible to obtain precise data on pedestrian traffic for hourly fringes and on the streets that interest us most.

Leave a Reply

Your email address will not be published. Required fields are marked *