Store Segmentation is the process of grouping stores with shared characteristics to enable businesses to optimise store level activity. Optimising price, range, merchandising and on and offline promotions at store and estate level in order to target sales and marketing activity more effectively.
Retailers and brands are focused on segmenting their stores and aligning marketing effort to deliver more meaningful engagement with shoppers. The reasons people shop in a garage forecourt as opposed to a hyper store stem from different shopping occasions.
Once stores have been segmented (by retail, target audience, shopper usage) businesses can align sales and marketing activity more effectively. There are huge geographical differences that effect buying decisions such as ethnicity, household composition and affluence. Store segmentation enables businesses to understand these complexities and align price, range, promotions and merchandising to target groups.
Understanding these complexities helps shape store segmentation aligning price, range, promotions and merchandising to target groups.