Rethinking Retail Location Decisions: Industry insights into Decision-making Practice

Abstract

Retail location decision-making is facing growing challenges as consumer behavior becomes more complex and dynamic. This paper draws on ten in-depth interviews with location decision-makers at major Canadian retail and service firms. While traditional decision-making practices continue to dominate, there is an increasing interest in leveraging spatial big data and applying data science and geospatial artificial intelligence (GeoAI). Yet, many organizations remain cautious, often relying on institutional knowledge or rebranding existing tools rather than wholly embracing innovation. Experimentation with data science and GeoAI is taking place. However, its effective integration will require strong leaders and better collaboration between data science teams and decision-makers to align analytical models with experiential judgment. Nevertheless, the shift from legacy decision-making toward more adaptive data science and GeoAI-informed strategies is underway. This transition marks a strategic inflection point, with the success of new approaches depending on how well firms overcome inertia and foster innovative decision cultures.