Analyzing Your Retail Locations

In addition to regional branches (which all geographically expanding companies sooner or later establish), companies that are involved in retail operations (‘brick-and-mortar’ stores, restaurants, services outlets, etc.) have to set up retail locations (or ‘outlets’).

In our increasingly online world most (if not practically all) such outlets that do not absolutely require the physical presence of the client (e.g, gyms, hairdressers, restaurants, etc.) will most likely disappear; others will be here to stay.

The primary difference between the retail location and retail branch is twofold: (1) the former cover much smaller territory and (2) these territories almost always overlap. The second requires much tighter horizontal coordination between the outlets.

Otherwise, each retail outlet is also ‘a business within a business’ and the whole business entity is essentially a portfolio of these outlets. Often, such businesses use the franchising model to grow which requires a solid franchising strategy and a highly efficient management of relationships with additional stakeholders – your franchisees (which needs to be analyzed in the same way as you analyze relationships with your partners). Whose plans, activities, etc., must be tightly integrated into your overall corporate management system.

Obviously, this portfolio must (1) be comprehensive and (2) match your corporate geographic strategy. And a strategic plan for each outlet must match your corporate strategic plans.

Every regional branch has its own history, strategic objectives and plans, target markets (geographically segmented), its own risk management system, stakeholders, processes, obviously a functional organizational chart and personnel. Everything else is provided by headquarters.