Retail

Building a Practical Store Roll-out Plan and Investment Business Case for a Premium Fashion Retailer 为某高端时尚零售品牌制定实体店开店计划和商业投资案例

一家意大利高端时尚集团计划将其零售理念带入中国,目标是在进入中国市场的前3年开100家店以上。为了达成这个目标,我们帮客户制定了切实可行的开店计划,包括选址、投入和预计盈亏等。

Background

A premium Italian fashion group was considering to bring one of their retail concepts  to China, with the goal of hitting 100+ stores within the first three years; this goal of this engagement is to build a practical plan for rolling out these locations, as well as to build the financial business case for board approval


Solutions

•    Identified and evaluated the potential universe of store locations for initial 3-year entry

–Conducted field work across 25 cities in China to identify all possible shopping malls and collected store performance data
–Evaluated the store performance of each shopping center based on foot traffic, purchasing power & image fit
–Validated actual availability of each shopping center; Shortlisted to ~180 shopping centers as qualified locations
–Determined regional synergies affecting roll-out timing

•    Built a P&L model to validate the financial feasibility of the 3-year store roll-out plan

–Developed a store level P&L model to assess various operating scenarios and timing
–Worked with clients to evaluate entry scenarios against financial reality and internal considerations (Cost, investment, mix of store operating models, etc.)
–Final output was a store roll-out and operating model plan, with an accompanying P&L and investment business case

•    Board approval was received and implementation is ongoing


Methodology

•    Conducted on-site visits (including interviewed landlords) to collect shopping center positioning and performance data 

•    Created P&L models for each location and identified those that made sense for entry in the initial 3 years

•    Worked closely with the client to develop the entry strategy and investment case that aligned with internal goals and capabilities


Selected Findings



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