The constantly changing relationship between online and offline retail channels is making the task of store network planning more than challenging than ever. Excess space is a problem facing many retail businesses, with ecommerce cannibalizing in-store sales. In addition, changing consumer behaviors and expectations are requiring additional in-store investment.
In order to plan accurately, retailers need a deep understanding of how market dynamics impact shopper behavior across different location types, exactly how each individual store is used and its revenue streams, and the cost base of the business.
In this Executive Insights, London partner Jonathan Simmons explains how sophisticated network planning tools and advanced data analytics can help retailers to address these questions. Using real-life case studies, L.E.K. demonstrates how adopting a strategic approach to network planning can help retailers achieve a significant uplift in profitability.