Store location strategy

Brief

Our client, Gudrun Sjödén, a Scandinavian high street retailer specialising in clothing and home textiles in natural materials, was looking to open its first UK store in London.

Although they held data on approximately 26,000 UK consumers collated via their web-based mail order service, they did not know London well enough to make an informed decision on which areas would provide the optimum location to attract their customer base.

Action

Initially a thorough analysis of their existing UK customer base was completed to provide a consumer profile of their online customers. Key characteristics, transactional, behavioural and life-stage data were all utilised to create pen portraits of their client base.

Location analysis was then undertaken on actual shopper destinations, high streets, shopping centres, retail parks, designer outlet parks within London and places where an ‘aspirational’ retailer should be looking to locate. Catchment analysis, via our data mapping, analysis and reporting software Segmentz, was performed around each location to assess the size and consumer opportunity which best matched their brand profile.

The final assessment or ranking of location took into account the following factors:

  • The level of similarity between location and customer profile.
  • The proportion of target comparison outlets within the location (defined as General Clothing, Department Stores, Footwear, Ladieswear and Accessories, and Soft Furnishings)
  • The size of the location (i.e. total number of outlets)

Result

Working closely with the client, our customer and shopper insight project was used as a basis for the decision making process and this retailer opened its first store in London not long afterwards.

The store has been a huge success with the analysis underpinning all future sales and marketing activity.

http://www.gudrunsjoden.com/uk