New Store Concepts and Formats
Brick-and-mortar retail faces ongoing challenges with the growth of ecommerce, but the store is not dead. Stores offer inherent advantages that digital environments cannot replicate. But defining and launching a new retail concept or format is a complex process that requires an informed and thorough approach. Developing a concept that is compelling to consumers and owners/investors — and is substantially differentiated from the competition — is not easy, and the failure rate is quite high. There are many components to be examined in detail and executed correctly, which often requires organizational change and focus — without disruption of the existing business.
L.E.K. Consulting can help you tackle this challenge and achieve success. We have assisted numerous retailers as they developed and rolled out new store concepts and formats to increase store productivity, reduce costs, and serve as a platform for growth. In addition, we have helped our clients identify acquisitions that can support market expansion and growth.
We use a systematic approach that aggregates and analyzes customer insights to develop a new store concept or format:
Create: In this phase, we collect and analyze customer insights to identify needs and opportunities. Leveraging these customer insights, we develop high-level store concepts in collaboration with our client.
Define: After prioritizing potential store concepts, we test the preliminary attractiveness of each concept with customers via primary research. We utilize these insights and rigorous cost-benefit analysis to determine the optimal store concept.
Develop: In the final phase, we and our client launch pilot store(s) and analyze performance by closely tracking sales and soliciting customer feedback. Armed with additional data, we refine the store concept as necessary and develop a complete launch plan for store openings/conversions, with key milestones and project resource responsibilities.
Our approach to concept development has helped dozens of retailers evolve their customer experiences and achieve success in their new store concepts and formats.