FSP was commissioned to provide insight and direction as the client sought to expand their UK presence. They required an understanding of their UK shoppers and assistance in prioritising new locations.
The client, a Swedish hardware store chain and mail-order firm that specialises in hardware, home, leisure, electrical and multimedia products. It is one of the biggest of its type in Scandinavia, with a total of approximately 180 stores. In 2008, the company opened its first UK retail store in Croydon, South London. It later opened 13 further stores across the country.
The client had developed a mature business in Scandinavia where their “shopper” was readily identified and successfully targeted. The challenge was translating this shopper into other markets, including the UK, and then ensuring that chosen locations were suitable. Expected turnovers were also reviewed, to check they fell in line with board expectations.
What We Did
FSP delivered a suite of reports and supporting evidence to the clients UK team that could then be incorporated into their recommendations to the main board in Sweden.
Shopper Profile: Using demographic profiling, FSP closely classified the pre identified client shopper and used this to create a demand surface. This allowed FSP to classify locations with high numbers of key shoppers
Turnover Estimation: With detailed knowledge on catchment dynamics and market penetration, FSP was able to estimate site turnovers for the identified locations
Benchmarking: FSP ranked identified locations against existing portfolio stores and competitors in terms of turnovers, catchment sizes and key customer profiles
FSP’s analysis highlighted how trading performance relates to factors such as competitor provision, catchment size and lifestyle preference for the brand offer. The top 250 sites, in terms of estimated turnover, were delivered to form their expansion strategy targets. The data was also used by marketing teams to assist activity and to build interest in their stores.