Optimization of Branch Network using Location Insights

The Client

Teta is a drugstore chain with 700+ stores in the Czech Republic. 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 and cosmetic products to 5500+ stores and has its own production of products.

The Challenge

Unoptimized Branch Network

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 particular location?

• In which of the existing 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 spaces left on the map?

• From where are our customers coming, and who are they?

• Are we efficiently distributing our flyers?

• Does the redesign of stores increase footfall, customer loyalty, and the value customers bring?

The Solution

Location Context for Business Decisions

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, CleverMaps 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 the 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

The Result

Continuous Network and Direct Marketing Optimization

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

Key takeaways for Teta:

• Data-driven decisions for branch network

• Determination of real market potential and share

• Increased ROI of flyer distribution

Want to try the branch optimization solution? Let us know, and we will show you a quick demo.