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Retail Footprint Optimization

Make more strategic corporate real estate decisions by analyzing your customers, competitors, store performance, and network.

In an increasingly omnichannel world, retailers have to rethink the design of their physical store network. We use a four-stage analytical stack to help clients improve strategic real estate decisions:

  1. Customer and Competitor Profiling. Companies should start by having a clear understanding of who shops their stores. What are the demographic and socioeconomic characteristics of the consumers within their current network footprint? And who is shopping the competition?
  2. Store Performance Modeling. Next, it’s important to understand which factors impact store performance. This serves as the backbone of any data-driven network strategy plan.
  3. Headroom Estimation. Retailers can use the knowledge gained in the first two steps to create a solid estimation of how much headroom exists in the market and how much growth can occur before cannibalization becomes a significant problem. Doing so ensures retailers have the right expectations for network growth.
  4. Store Network Optimization. A network optimization plan can help retailers determine the right combination of stores to close, expand, relocate, build, or improve. The result is a better return on investment, improved profitability, and greater customer accessibility.

These same criteria can be applied to a number of different industries—banking, health care, and manufacturing—to address factors such as customer accessibility, employee allocation, supply chain management, and more.

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