As part of its property and store development planning process, the client – a leading Southeast Asian retailer – needed to determine the optimal sizes for its hypermarket stores.
By comparing the marginal net profit from increased space with the marginal costs – such as rent and utilities – incurred through provision of the space, we were able to identify optimal store sizes a teach location. Adding additional value to our analysis, we also identified the optimal category mix to enhance the profitability of all space to be retained.Our analysis provided scenarios both where space allocation decision-making is unrestricted and where decisions are constrained by the location of fixtures and other building features. A range of conservative and aggressive scenarios were developed for senior leadership to incorporate into strategic planning.
Averaged across all stores, we found approximately 30 percent of existing floorspace could be removed.The combination of store size reduction and optimisation of category space allocations for the retained store floorspace amounted to a forecast profit opportunity of approximately SG$6m.
Our macro space optimisation strategies drove a net change in store sales of more than seven percent for a leading Australian office supplies and technology retailer.
We identified a 4-5% sales and margin growth opportunity for beauty retailer through ensuring the best available brands are selected for each store.
We identified profit opportunity totalling more than AU$50m for a leading Australian department store chain.
With Covid-19 upending shopping patterns, we helped a UK food retailer adapt its macro space to adapt to increased online sales
We optimised floorplan flows and adjacencies to deliver a c.2% stronger sales and margin growth
We identified financial opportunities totaling HK$190m for a health and beauty retailer based in Hong Kong and Macau.