Spatial Insights undertook a market potential analysis of check cashing and pawn shop expansion potential in the Houston, TX metropolitan area. Using precision geocoded business locations from CAP Locations ReCAP Retail database coupled with current year block group-level demographic estimates sourced from AGS, the study employed a suite of GIS tools in analyzing and mapping the geographic distribution of demographic demand and market potential.
The steps of the study were to evaluate supply based on square footage of existing locations, model demographic demand, and examine the geographic relationship between supply and demand in order to identify areas with strong market potential. For the demand model, five variables, known to be strong indicators of demand for check cashing and pawn brokerage services, were mathematically combined into one score using a data indexing scheme. CAP Locations ReCAP Retail database provided the supply of existing check cashing and pawn shops. TrendMap, a trend surface mapping tool developed by Spatial Insights, was used to generate a “hotspot” map of both demand and supply.
“The elegance of this innovative use of GIS tools and data is that it isn’t limited to the check cashing and pawn industry,” noted Don Segal, president of Spatial Insights. “We’ve used this approach for many different industries across the US and abroad. The limiting factor is the availability of more accurate business locations and increasingly detailed and updated demographic data.”