Portfolio Review: For most retailers, their existing portfolio is more valuable than planned new openings and acquisitions. A periodic portfolio review provides a strategic perspective and it is critical to asset preservation. An evaluation of the individual store’s performance/ productivity, trade area demographics, co-tenancy and existing and proposed competition is conducted. A portfolio review forms the basis for key asset decisions such as dispositions, closures, remodels and expansions.

Trade Area Analysis: The trade area is the demand basis for the products and services the retailer offers. An accurate understanding of existing (or proposed) stores' trade areas represents an important competitive advantage. The store's or site's trade area is based on charge card activity, survey work, drive times, analog locations and competitive placement. Once defined, the trade area influences merchandising and marketing decisions. The chain's existing stores' trade areas serve as performance analogs for new store locations. Small area performance gaps can also be identified in this process.

Market Strategy: A market is a dynamic entity. Changes in competition, population distribution and road patterns can render existing market coverage obsolete. Market metrics affecting stores’ locations and those of key competitors are inventoried and recommendations are provided regarding new locations, remodels, expansions, relocations and closures.

Management Geography: Location Strategies can evaluate and reconfigure retail management geography to balance sales and minimize travel times for district and regional managers. This objective approach is particularly useful when combining management teams and/or reducing the number of districts and regions.

Closure Candidates: The decision to close a store should be based on more than its current volume and lease expiration date. Factors such as overall market share and location potential versus its actual volume should also be considered. Location Strategies can develop an objective store closure candidate list and identify those remaining stores with the most sales upside.



New Store Performance Analysis: Provides key revenue elements necessary for effective financial analysis including sales and transfer estimates, sizing and timing recommendations. Factors utilized in sales forecasts typically include trade area demographics, store performance characteristics, site attributes, competitive strength and analog locations.

Acquisition Analysis: Acquiring an existing retailer’s location(s) requires much of the same due diligence as opening a new store. Although the current revenue stream is known, pricing also is influenced by the anticipated future revenue growth. Location Strategies prepares a feasibility study for acquisition targets with specific emphasis placed on revenue growth.

New Market Identification: Location Strategies provides the tools to select new markets offering the best chance of success. Objective measures of competitive strength, growth and existing players’ performance are developed to optimize new market decisions.

Performance Model Design: Performance models represent important tools in the site selection process. Models are valuable in assessing the affect numerous variables have on a location’s performance. Once completed, they are fast, inexpensive and easy to use. However, models do have limitations. Location Strategies understands the strengths and weaknesses of performance models. Once a model is designed and tested, we will ensure that it is used properly and will identify appropriate checks and balances to be employed by the client.