02 — Capability · BC-1370.10
Network Strategy & Site Selection
Decide how many stores the retailer should have, in which markets and formats, and choose the specific sites that will earn their keep, using trade-area evidence rather than a landlord's brochure.
- Market Planning
- Site Analytics
- Location Strategy
In scope
- Network targets by market and format
- Trade-area analysis and sales forecasting for candidate sites
- Cannibalization and halo assessment against existing stores
- Site approval with the investment case
Out of scope
- Corporate growth strategy that sets the capital envelope (see BC-110)
Decomposes into · 4
- BC-1370.10.10Market PlanningDefine how many stores of which format each market can support, and the order in which to enter or exit markets.
- BC-1370.10.20Trade-Area AnalysisModel who lives, works and travels around a candidate site and forecast the sales it would produce.
- BC-1370.10.30Cannibalization AssessmentEstimate how much of a new site's sales would come from the retailer's existing stores and online, and whether the net is worth it.
- BC-1370.10.40Site ApprovalPresent each candidate site with its forecast, cost and risk for a decision at the level that owns the capital.