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09 February 2016

FSP was commissioned to provide insight and direction as the client sought to expand across the UK. They required assistance to prioritise a list of target locations. FSP constructed a bespoke and robust model to help identify potential new locations and to predict gross sales.

Business Context

The client, a British fashion and lifestyle brand that sells clothing, footwear, accessories and home products inspired by British country lifestyles. The company has 99 retail stores in the UK with a turnover of over £117m. The brand has since expanded overseas with particularly successful sales in Germany and USA.

The Challenge

The client had developed a portfolio with a diverse and varied mix of store locations. The model generated by FSP had to provide strong indicators of potential new store performance and comparable analysis for locations as varied as regional flagships to seaside towns.

What we did

A robust and tangible model had to be developed by FSP to assist the selection process. Elements of this model are outlined below.

  • Shopper Profile: Using demographic profiling, FSP classified the clients existing shoppers, and used this to create a demand surface. This allowed FSP to identify towns with high numbers of key shoppers – a key factor in identifying potential new sites
  • Key Revenue drivers: A number of factors were tested against existing stores’ gross sales. Several factors were identified as important drivers of gross sales, these included:
    1. Floor space provision relative to market size
    2. Whether or not the town was an NSLSP Top 200 location Number of key shoppers in the catchment
    3. Number of residents aged 25-44 in the NSLSP catchment

Result

FSP delivered a model that had a high degree of accuracy in predicting gross sales. We worked closely with the clients internal teams in producing a prioritised list of locations to focus on.