Store Network Optimization

As part of their continuous drive to maximize ROI on commercial expenditure, we supported a retail client in assessing their store chain in terms of commercial potential and performance to identify optimization opportunities

Key Objectives

  • Perform substantiated assessment of store chain footprint vis-à-vis commercial potential 
  • Achieve commercial expenditure savings while preserving value generation through the specific channel
  • Attain performance improvement against retail / operational KPI’s

Our Approach

  • Defined catchment areas and performed comparative analysis in terms of commercial potential
  • Determined level of coverage for each area considering population density and commercial potential.
  • Performed internal assessment of store performance in a number of KPI’s considering: operations, value generated, and costs to assess value leakage, relative return on investment, and root causes for under-performance
  • Combined the two set of analyses (external and internal) to generate a concrete action plan 

Impact for our Client

Arrived at a personalized recommendation for each store based on the analysis that drove network development actions:

  • Square meter addition
  • Closure
  • Franchisee change
  • Case by case operational actions

Value and Expenditure per Location

Value and Expenditure per Location

Coverage Assessment

Coverage Assessment