Store Network Design

Introduction

This video illustrates how the arrangement of stores within a geography can create convenience for customers. The video starts with Customer Segments and their preferences then shifts to looking at how stores create convenience through site selection. 

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Store Network Design - Transcript

  • We have our segments and how they each value retail. Now take a look at this. This is a snapshot of what blue values.
  • Over here on the right we have competitors that are attempting to meet Blues needs across each of these dimensions. Let’s take a closer look at convenience. There is both a digital and physical aspect to convenience. We are going to focus on physical store location first. So where will our competitors put their stores?
  • Let’s take a look. This is Chicago. We’re going to remove the roads and buildings and just look at the area.
  • The competitors are at the pitch. Yellow is first on the field and they have stretched themselves a bit. Ohh that’s not the best opening is it? Let’s see if green can capitalize on this mediocre start from yellow.
  • Green takes the field. Oh my. He went wide. He went way wide. He’s taken himself right out of the play. Oh his teammates are livid and he’s completely out of position. He’s down here when he should be up there. Look at Reilly on green he is screaming! For our younger fans, I do apologize and I hope no one can read lips.
  • Here comes red. A much more leisurely pace. ohh I don’t like it. I don’t like it. They have stretched themselves worse than yellow. Corner red is asleep. He hasn’t moved. Red is opening themselves up for a counter.
  • Let’s see if blue could take advantage. Blue is keeping their shape. Wonderful teamwork. Brilliant! They dispossessed yellow and red lovely work by blue. Beautifully done. While football is the beautiful game, stores don’t move around on the playing field. A well designed store network will create convenience for your customer base that will drive customer acquisition and retention.
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