Conceptual Framework on Finding Optimal Locations of Uniqlo Stores using Spatial Analysis

Abstract

Location plays a crucial role in retail strategy. In this research, a new optimal location of Uniqlo in Greater Kuala Lumpur will be identified by using Spatial-MCDA. Spatial-MCDA combines spatial analysis and Multicriteria Decision Analysis (MCDA) where the spatial analysis will consider various criteria when conducting the analysis. The most important aspect of MCDA is deriving the weightage that will be used by spatial analysis. Various weighing techniques are available including Analytical Hierarchical Process (AHP) which will be used in this study. This paper will explain the conceptual framework of finding optimal locations of Uniqlo Stores using Spatial-MCDA. The framework started with identifying a set of criteria that influence the optimal location of the Uniqlo stores including Target Market, Facilities, Transportation, Safety and Security, and Competitor. Next, the weightage or priorities for the criteria will be computed using AHP decision rules based on their degree of importance in deciding the location of Uniqlo stores. Then, a spatial analysis will be conducted. A spatial model that will be used in finding the location will be developed by using a model builder. This stage will automate the lengthy procedure of finding the location. In this model, the weighted overlay technique will be used to identify the optimal location based on the weightage of criteria which will be represented as raster datasets. The finding of this framework will be optimal locations of the new Uniqlo stores.

Geographic Information Systems Applications in Business Decision-Making

“…In their forward-looking research, Mukrimo'az Hashim and Nabilah Naharudin present a comprehensive and innovative conceptual framework that extends the frontier of optimal location determination for Uniqlo stores, integrating advanced spatial analysis techniques [14]. The research begins by meticulously identifying a set of criteria that wield significant influence over the selection of optimal locations for Uniqlo stores.…”

TD Bank Site Selection Using a Multi-criteria Decision Approach

“…As a result, this section expands the scope of consideration to broader retail and site selection applications to identify the types of criteria that were identified throughout AHP processes. Hashim and Naharudin (2020) identified five key criteria for retail site selection (Uniqlo stores in Malaysia): target market, facilities, transportation, safety and security, and competitors (Hashim & Naharudin, 2020). This approach provides a good set of variables to consider including potential customers, competitors, and access.…”

TD Bank Site Selection Using a Multi-criteria Decision Approach

“…As a result, this section expands the scope of consideration to broader retail and site selection applications to identify the types of criteria that were identified throughout AHP processes. Hashim and Naharudin (2020) identified five key criteria for retail site selection (Uniqlo stores in Malaysia): target market, facilities, transportation, safety and security, and competitors (Hashim & Naharudin, 2020). This approach provides a good set of variables to consider including potential customers, competitors, and access.…”