Ogie Project

A Comparative Business Site-Location Feasibility Analysis using Geographic

Information Systems and the Gravity Model

Jesse K. Pearson

Department of Resource Analysis, Saint Mary’s University of Minnesota, Minneapolis,

MN 55408.

Keywords: Gravity Model, GIS, Thiessen (Voronoi) Polygon, Geodemographic,

Shapefile, Target Market, Trade Areas

Abstract

A site-location analysis was conducted using Geographic Information Systems (GIS) to

locate where future Kowalski’s Markets could be located in the seven county Twin Cities

metropolitan area. Kowalski’s Markets will here after be referred to as Kowalski’s.

Kowalski’s provided their preferred demographic information from their two most

successful store locations of which the potential market analysis was based on. A

comparative analysis was completed between the final GIS analysis and the gravity

model, where both site location analysis techniques were combined to provide results of

the areas that have the highest market potential as well as site selection recommendations.

There were four recommended site locations and four future potential areas to build new

Kowalski’s stores and expand their market.

Introduction

Kowalski’s was founded in 1983 by

renovating a Red Owl Country Store and

differentiating itself from the discounters

by adding value to the shopping

experience. Kowalski’s specializes in

providing fresh bakery products,

specialty meats, and organic and natural

foods. To expand Kowalski’s market

area the traditional path has been to buy

underperforming grocery stores and

covert them into Kowalski’s Markets,

but in the past 7 years they have also

built a couple of stores.

The goal of the site-location

analysis is to provide Kowalski’s with 4

or 5 possible site locations to develop

future stores. Site selection is a crucial

part in expanding any business as it is a

very costly process if the store fails.

One of the most important decisions a

retailer can make is where to locate a

retail outlet; a retail store can...