STRATEGIC LOCATION SELECTION FOR UDO INNOVATE’S OFFLINE STORE USING ANALYTICS HIERARCY PROCESS (AHP) DECISION ANALYSIS

• Main Author: Farhan Dzaky Haryanto, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83111
• Institution: Institut Teknologi Bandung

Local fashion industry growth and contribute positively to the national export values for 61.5% in 2022. The gloriousness of local fashion industry impacted by streetwear fashion loved by youth. The streetwear fashion industry as retail must do marketing strategy to sustain the business through omnichannel marketing to improves overall sales and performance. The implementation of omnichannel marketing impacting to the customer knowledge, emotion, and experience value in buying products. To applicate the “adding bricks to clicks” opening offline channel after online channel exist, the fashion retailers have distinct competitive advantage based on the location of their store. The process of choosing a retail location is crucial and intricate throughout assessment and combination between combination of numerous qualitative and quantitative factors to make sure the location generates enough profit to covers the expense. The Analytics Hierarchy Process analysis is the one of multicriteria decision making with considering the priority to decide the best alternative of retail locations. This research is an application of Analytics Hierarchy Process (AHP) analysis in solving the business case of streetwear company called UDo Innovate in selecting the best location for opening the first offline store in Bandung through multiple criteria priority scale to solving the company problem in low sales by implementing “adding bricks to clicks” omnichannel marketing as the part of the company grand plan in 2026 and the implementation recommendations to applicate the solution. In evaluating criterion and alternative, the researcher relies on executive level of UDo Innovate as experts’ judgement through interview and questionnaire. The criterion used in the AHP process decided by literature review and expert judgement curation interview with implementation of Delphi method to obtain experts consensus. The experts respond the questionnaire to generate the weight of the criterion with pairwise comparison. The pairwise comparison summarized by geomean to produce the consensus weight of the criterion. The calculation steps generate important level for the criterion to decide the most important criteria in selecting retail store location. The importance of the criterion is renting cost (0.369), visibility (0.238), renovating cost (0.165), population density (0.118), number of parking space available (0.066), and accessibility to public transportation (0.042). The criterion used to decide the best location to opening offline store by questionnaire filled by the experts. The questionnaire transformed to pairwise comparison format and concluded by geomean. The pairwise comparison comparing each criterion with the alternative locations to obtain priority weight of alternatives regarding the iii determined criterion. The result is the summation of the priority weight of the criterion in the alternatives. The scoring result for the alternatives is OTS (2.05), DPU (1.99), and ANT (1.95). The selected retail location for UDo Innovate offline store is Otto Iskandardinata (OTS) with the highest scoring value to solve the UDo Innovate grand plan in increasing sales through “adding bricks to clicks” omnichannel marketing strategy in 2026. Otto Iskandardinata is the suitable place to open retail store with its high movement of people and vehicle and accessibility of raw material, food, and beverage that stimulates the visitor of the offline store. keywords: fashion company, streetwear, omnichannel marketing, retail store, location selection, analytics hierarchy process