Network Optimisation PDF Print E-mail

Full analysis of your retail network, appreciation of growth potential for every location, and determination of KPI to reach specific targets.

 Case study 1: Full Network Analysis

A national bookstore retailer has already opened 80 stores across the Russian Federation, and is looking to expand its presence nationally. But while stores data is successfully gathered and analysed at regional and national level, there is no clear understanding of the main factors of success or failure of each local store, and whether each location has any potential for future growth. The bookstore's management has requested a network analysis be undertaken before launching a full roll-out.

RILOS will combine data-mining tools with geo-marketing solutions to analyse each store's commercial data towards their socio-economic and competitive environment. The determination of stores Key Success Criteria, and the segmentation of stores into relevant typologies will lead to the constitution of a specific model aimed at enhancing and speeding up future national roll-out while minimising new stores selection risks.


Case study 2: Operational Cost Optimisation

A retail bank with 45 branches across the Ural region has expressed the need to reduce its operation cost by 15% with the minimum number of branches closing.

RILOS will combine data-mining tools with geo-marketing solutions to analyse each branch's commercial data towards their socio-economic and competitive environment. The determination of stores Key Success Criteria, and the segmentation of branches into relevant typologies will lead to the constitution of a specific model. Each current branch will be analysed to characterise whether they have any potential for future growth, multiple scenario testing and a new optimal network configuration will be proposed according to the retail bank's expressed requirements

 

Case study 3: Acquisition of a competitor network

A national hypermarket retailer with more than 40 stores across the Russian Federation is considering the purchase and integration of one of two potential regional competitor networks. While financial terms are comparable and current sales turnover by store has been received, there is no clear picture of whether given turnover figures are realistic, and whether there will be potential synergies between networks from the customers' point of view.

RILOS will perform an audit of local consumption behaviour to determine current hypermarkets catchment areas and penetration rate, model formulation for consumer behaviour in each local market, analysis for market complementarities of both options, and present conclusions relative to the selection of both options.