When choosing your next business site, competitor presence is a key factor to analyze. But is having competitors nearby always a threat to your business?
Surprisingly, the answer is: not always. In many cases, retailers offering similar products and services actually benefit from being in close proximity to their competitors. Our analysis of over 2,500 c-store locations across the U.S. revealed a notable trend - some businesses deliberately position their new stores near competitors, and as a result, both parties see positive results.
Why? Customers.
One standout example is the store in North Carolina, which will be called Chain A, to preserve confidentiality. A long-term analysis of traffic flows on adjacent roads revealed that when another c-store chain - Chain B - opened a new travel stop nearby, it actually boosted traffic to Chain A’s location, as well.
The Average Daily Traffic (ADT) on the primary road near Chain A grew by approximately 400 additional vehicles per day, making up 8.5% of the road’s total AADT. Meanwhile, traffic beyond Chain A’s entrance remained mostly unchanged.
What does this mean? The increase in vehicles wasn’t just passing traffic - it was new potential customers drawn by Chain B’s presence.
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More importantly, higher traffic means more customers. Using Ticon’s advanced traffic-to-visit estimation methodology, we found that Chain B’s truck stop boosted Chain A’s visits by 30% - without any additional effort or investment from Chain A.
Competitor presence drives growth
The construction of the Chain A site led to significant traffic spikes at the exit from US 301 highway to Chicken Foot Rd., and corresponding increase on the latter. Most of said increase represents new visitors to both new and existing travel centers:
• +424 additional vehicles entering Chain A
• +1,267 vehicles heading to Chain B (see the graph below)
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Traffic flow from the southeastern highway (I-95) also played a role, which is not discussed here. This is why, to fully understand the effects of new developments, we recommend our clients to analyze all surrounding roadways, not just those in immediate connection to the site.
Ticon’s site selection analysis for gas stations and convenience stores provides detailed traffic data for any road segment across the U.S., helping businesses make smarter, data-driven location decisions. You can learn more about it by contacting us at info@ticon.co.
What does this tell us?
Chain A experienced a surge in demand - without making any changes or investments of its own. The customer increase is an entire result of Chain B’s new construction.
If Chain A had been using a standard retail site selection service, they might have noticed this pattern eventually. But with Ticon’s real-time retail location analysis tools, they would have seen it right away - and understood the full impact.
And this case isn’t unique. When competitors cluster in high-demand areas, they don’t just compete - they create customer hubs. More businesses mean more traffic, a greater draw for passing customers, and ultimately, a win-win for multiple retailers.
When and where?
Understanding when and where competitor presence can be advantageous is crucial for successful retail site location analysis. A new development near your store could bring an unexpected surge in visits, boosting both traffic and revenue.
Want to stay ahead of these market shifts? Our impact analysis case study reveals how external factors influence demand - and what that means for your business.
Now, ask yourself - can your location intelligence provider deliver this level of insight? Ticon offers the most advanced business location analysis on the market, and sets a diamond standard of data accuracy, combining precision, speed, and depth of location insights.
Stay ahead of the curve. Reach out to us at info@ticon.co today and see how cutting-edge site selection can power your next move.
