Combine location intelligence with advanced analytics and AI to find the optimal store locations
Make data and AI work for you when selecting feasible store locations and their concept planning.
Identify prominent new locations
Store Network Optimizer showcases relevant nearby competitor presence as well as detailed population demographics within the estimated catchment area. It generates credible sales forecasts for each map square. This information is to be used for evaluation site profitability calculations.
Generate detailed information basis for individual locations
Showcase relevant location demographics, competitor presence and distance to nearest own stores
Locations' sales forecasts are broken down to category level
Store network optimization of the Nordic’s largest discount retailer
Tokmanni Group Oyj is the largest discount retailer in the Nordics with over 150 stores in Finland. In preparations for its IPO the company needed to establish the ideal store network for 2020, including the number of stores and their locations, and the concepts for each location.
With predictive analytics we pinpointed 55 new store locations, their recommended sizes and assortment. Validated sales potential accuracy for new-store opening was 98%.
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Enhance understanding of current store network performance and their drivers
Which stores are performing up to their full potential? Where and in which categories performance can be improved, and what demographic or competitor presence explain store performance variations?
Comparing budgeted sales to actual sales leaves one key question unanswered: what is the sales potential and how well is that met?
Current network performance analyses uses forecasted sales as the baseline which actual sales is compared with. Total sales forecast is broken down on a category level to indicate over- and underperforming categories giving actionable insights on category allocation – and performance enhancements.
Frequently Asked Questions
- potential for store network (maximum amount of stores a certain area can sustain, ideal structure of store network by different sizes/assortments and sensitivity analysis/cannibalization),
- prioritized locations (prioritized lists of most potential locations, description of most important demographics and estimates of cannibalization),
- most potential store size/concept for each location (estimation of the ideal store size by location, and estimation of the ideal store assortment by location), and
- detailed forecasts for each location (forecasts for store footfall, average purchase and margins, sales potentials for both existing store network and new store openings).
