Delve into the dynamic world of retail expansion. As the retail landscape evolves, we’re exploring how savvy retailers are not just surviving but thriving by strategically growing their physical presence. From harnessing the power of omnichannel strategies to creating adaptable store formats, we’ll uncover the secrets to building a profitable, sustainable, and customer-centric store empire. Whether you’re a seasoned physical store retailer or just embarking on the foundations of your retail estate, this episode is packed with insights to help you navigate the future of retail.
Listen in to discover:
- How leading retailers are using stores to develop their omnichannel offering.
- How adaptable store formats are being used to meet customer needs and test and learn.
- Why data should be used to minimise the risk of opening new stores.
- The other crucial factors to consider when expanding your store estate.
Summary: Defining your strategy for expanding the estate
Right now, we’re seeing several retailers such as Aldi, Lidl, and Sephora opening stores and increasing their physical presence. In terms of openings and closures, the retail sector is at its most stable in over six years. So, the episode delves into whether expanding a retail store empire is viable and how to approach it strategically amidst ongoing changes in consumer behaviour and retail environments. However, there is much to consider:
Footfall trends
While footfall has seen long-term declines, especially post-Covid-19, there are opportunities for growth by redefining store purposes and creating compelling reasons for consumers to visit physical locations. Retailers like Nike and Apple are leveraging in-store experiences and community engagement to draw customers.
Omnichannel strategy
The integration of online and offline channels is crucial. Retailers should consider how physical stores can complement online sales, boost brand visibility, and encourage omnichannel shopping, which tends to lead to larger baskets and increased loyalty.
Boosting ecommerce
Opening physical stores can lead to an increase in online sales. Increased awareness, improved discovery and the security of easy returns means companies like Next have seen online sales uplifts in the vicinity of newly opened stores.
Adaptable space
Retailers should explore adaptable store formats, such as smaller city stores, pop-ups, or shop-in-shops to test markets and meet evolving consumer needs. This flexibility can aid in local market penetration and responding to shifting footfall patterns.
Data-driven insights and decisions
Utilising more data sources and advanced data analytics can guide strategic decisions about ideal store locations and formats. Using data helps to minimise risks and optimise store estates.
Store proposition and execution
It’s essential to clearly define the store’s purpose and ensure the execution aligns with the brand’s strategy and customer expectations. This includes fostering an engaging in-store environment and offering unique experiences.
Strategic considerations
Retailers must understand the purpose of their physical stores within their overall strategy and define success metrics to ensure their expansion aligns with broader company goals. Starting with capturing the “why” is always a good approach.
Oliver Banks recommends a well-thought-out strategy, proposition, and execution plan for expanding your retail store empire. Consider your approach carefully and if you’d like to discuss your approach with Oliver, reach out to him below.
Defining your retail expansion strategy with OB&Co
Discuss how to expand your retail business – reach out to Oliver and the OB&Co team to explore the opportunities and approaches.
📧 Email on oliver.banks@obandco.uk
🔗 Connect with Oliver Banks on LinkedIn and send a message.
Also, be sure to check out Oliver’s book, Driving Retail Transformation: How to navigate disruption and change. It’s available wherever you like to buy your books. Expansion is one of the 6 types of transformation that Oliver shares – and today, we’ve only touched on one part of expansion! There is a lot to consider in any transformation and you want to maximise your chances of success.
More episodes of the Retail Transformation Show
The role of the physical store is evolving far beyond the traditional place of transactions. In episode 296: Reimagining The Role Of The Physical Store, Oliver encourages you to think expansively and reimagine the role of shops.
With data and connectivity being a vital component of modern retail, it’s important to consider how to develop the network to ensure it’s an asset, not an anchor, on your stores. Join Juniper’s Keith Cahoon in episode 277: Explore The Hyper-Connected Store and consider the art of the possible in your physical places.
And finally, in episode 265: The Challenges Of Unified Commerce, two special guests joined. Aptos’s Nikki Baird and Bain’s Bala Parameshwaran connect with Oliver and discuss the opportunities and challenges of omnichannel and unified commerce.
