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How to Evaluate the Foot Traffic Potential of a Retail Location

Evaluate the Foot Traffic Potential of a Retail Location

At a glance: 

  • Identify your target customer and assess whether the local foot traffic matches their lifestyle and buying habits.
  • Visit the site at different times and on different days to test for consistent footfall, not just a temporary spike.
  • Use tools like Google Popular Times, council pedestrian data, and mobile tracking platforms, and talk to stakeholders to support your observations.
  • Consider the impact of anchor tenants and co-tenants on traffic quality and conversion, not just visibility.

 

Foot traffic can make or break a retail location, but volume alone isn’t enough. A busy street may seem promising, but visibility doesn’t guarantee revenue. If the people walking by aren’t part of the intended customer base, the site may struggle to deliver results.

Evaluating foot traffic is a critical part of selecting a location that supports long-term performance for both the property investors and businesses occupying the property. The true test of a site’s value is whether it attracts consistent, qualified footfall — people whose habits, preferences, and spending align with the commercial offering in the area.

This article breaks down how to assess whether a retail property offers not just visibility, but steady, commercially relevant foot traffic that supports long-term results.

 

Understand Your Target Market

 

A critical first step in assessing a retail location’s foot traffic potential is to define your ideal customer profile. Consider age, income bracket, lifestyle preferences, and purchasing behaviour. Without a clear understanding of your target market, even the busiest location may yield disappointing results. 

Think about how the local population moves through the area and whether their routines make your store a natural stop or something they pass by. This can be important whether you are buying or leasing a retail property.

For example, a premium lifestyle retailer is unlikely to thrive in an area dominated by student foot traffic or discount-driven shoppers.

Local government area plans and retail strategies can provide insight into location priorities and the types of consumers they aim to attract. Informal research is equally valuable. Social media, Google reviews, and even visiting local cafes can offer real-world insight into the rhythms and preferences of the local crowd. These insights help confirm whether the local traffic matches your commercial objectives.

 

Read more: Common Mistakes To Avoid When Leasing Commercial Properties In Melbourne

 

Observe Traffic Patterns at Different Times

 

Raw foot traffic numbers only tell a small part of the bigger picture. What matters more is when people show up, how regularly they return, and whether that activity aligns with your store’s busiest trading hours.

Conduct site visits across different days and time slots, including weekday mornings, lunchtime, evenings, and weekends, to capture true behavioural patterns, rather than isolated spikes. Watch for inconsistencies indicating event-driven surges rather than stable and habitual visitation.

Keep in mind broader variables like school calendars, public holidays, and weather, all of which can skew short-term impressions. Complement your visits with manual pedestrian counts or request historical foot traffic insights from the real estate agent

Experienced operators often use these data points to identify whether a location supports reliable, repeatable trade or looks busy but has no commercial returns.

 

Use Tools and Data Sources to Measure Footfall

 

In addition to on-site observation, digital tools provide an objective lens to validate foot traffic patterns. These platforms can confirm whether pedestrian activity is consistent, relevant, and aligned with your trading hours.

Google’s “Popular Times” and “Live Visit” features offer free, real-time insights into footfall trends at neighbouring businesses. In high-density commercial precincts, local councils may also publish foot traffic data and tools, such as the City of Melbourne’s pedestrian counting system, which tracks patterns across CBD intersections over time.

Beyond traffic volume, consider using other platforms to review historical tenancy turnover. Frequent vacancies may point to deeper issues, such as poor customer retention or weak trade conditions, even when a location appears active.

 

Evaluate Complementary Businesses Nearby

 

A strong retail location doesn’t operate in isolation. The businesses around you can significantly influence foot traffic quality and customer intent. Anchor tenants such as supermarkets, national chains, or pharmacies create habitual, high-frequency visitation that often spills to neighbouring retailers. Complementary businesses like a gourmet grocer beside a wine shop create natural cross-shopping opportunities that boost basket size and time spent in the location.

Use tools like Google Maps, leasing brochures, and in-person inspections to evaluate the current tenant mix. Ask whether your offering aligns with the needs, expectations, or behaviours of customers who already frequent the area. Online platforms like Yelp can also help identify which businesses attract attention and drive engagement.

To go beyond surface-level data for a more detailed picture, speak with leasing agents. They can offer insights into anchor tenant performance, upcoming developments, and tenancy shifts that may affect future foot traffic. A great location today may change character quickly; make sure you understand what’s evolving and whether it complements or competes with your business model.

 

Read More: An Overview of The Best Locations for Commercial Property in Melbourne

 

Talk to Local Stakeholders

 

Data and digital tools are valuable, but on-the-ground insight often reveals what numbers can’t. Speaking directly with nearby business owners, leasing agents, and centre managers can offer unique perspectives on how the area performs day-to-day and what to expect in the coming months.

Ask local retailers how foot traffic has changed over time, which days are busiest, and what operational challenges they encounter. Find out whether customer flow is consistent or seasonal and whether local marketing or council events meaningfully impact trade. These conversations can uncover red flags or missed opportunities that don’t appear in traffic reports.

In established precincts, business improvement districts (BIDs), chambers of commerce, or council precinct managers may also share retail strategy documents, upcoming development plans, or infrastructure changes that could shift visitation patterns.

Combining this grassroots insight with your digital and demographic research builds a more accurate picture of the location, reduces risk, and supports stronger decision-making.

 

Read more: Your Complete Resource for Commercial Real Estate Leasing in Australia

 

In conclusion, visibility in retail means little without relevance. The best locations attract consistent foot traffic from the right audience and support long-term performance.

Using data and on-the-ground insight to assess foot traffic helps reduce risk, improve retail site selection, and secure spaces that drive results, not just exposure.

Ready to secure a site where the foot traffic aligns with your business? Axis Property can help you identify retail sites with real trading potential through location intelligence and commercial expertise. Contact us today to explore opportunities matched to your strategy.