Customer story: Branch Network Optimization in Retail

We've seen Microsoft, SAP, GoodData but none of them provide such a deep insight.
David Vejtruba, CMO

Drugstore Chain of 700+ Stores

TETA was awarded the title of “Retailer of the Year“ five times (by GE Money) as well as the retailer with the highest footfall (by Incoma Gfk). The company distributes drugstore products to 5500+ stores and produces more than 300 products.

TETA was able to optimize the number of their stores in the best locations, decreased internal competition, achieved the planned coverage of the market and increased the ROI of marketing campaigns.

Challenge

Solution

Unoptimized Branch Network

Location Context for Business Decisions

The main business questions that TETA needed to answer were focused on the optimization of their branch network and location planning for new openings both to optimize the performance and expand the business. The following questions were not strongly supported by data and could not be easily answered:

  • What is the potential of a planned location?
  • What will be the impact on the current network if we open a new store at a certain location?
  • In which of the current stores should we invest and which calls for termination?
  • What is the pressure of internal and external competition in the given location (current and planned)?
  • Are there any white spots left on the map?
  • From where are our customers coming and who are they?
  • Are we distributing our flyers in an efficient way?
  • Does the redesign of stores increase footfall, customer loyalty, and the value customers bring?

Drugstore chain TETA has a mature and highly adopted loyalty program with more than 2,000,000 members. Using transaction data from this program and combining it with the external demographic data, CleverAnalytics enabled TETA with the needed insight enriched with location context. The location analysis brought the following:

  • Catchment areas for stores and the entire network
  • Penetration and share of members of loyalty program
  • Market potential and market share of each store
  • Overlaps of own stores within the network
  • Market share of the network in various areas
  • Market potential of proposed location(s)
  • Increased return on investment on flyer distribution

Result

Continuous Network and Direct Marketing Optimization

Retail network is like a living organism that reacts to even the smallest change in its surroundings. Thanks to CleverAnalytics, TETA's decisions are now driven by the most accurate data that is instantly updated and accessible online in an easy-to-understand map.

Data-driven decisions for branch network

Determination of real market potential and share

Increased ROI of flyer distribution

See Why TETA Is with Us

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