Using insights to inform store location strategy

Overview: Using data and insights making store location strategy

Using data and insights to inform ScS store location strategy and strengthen customer relationships

The ScS growth plan focusses on widening their target market, forging stronger relationships with customers and investment into existing and new showrooms to improve customer experience. To do this effectively, they needed to understand diverse demographics, and how their audience behaviours had shifted pre- and post-pandemic to shape their marketing and location strategy.

Mature woman sitting at home on her new sofa

Challenge overview

During fiscal year 2021, ScS undertook a review of its group strategy, initiating a comprehensive diagnostic stage that allowed a detailed examination of its core strengths and areas of opportunity. Part of the growth plan involved widening their customer base, forging stronger relationships, and injecting more investment into their showrooms to offer a more engaging customer experience.   

The furniture retailer is now on a strategic path to grow its retail footprint, capture more customers and elevate its market share. Leveraging data intelligence and analysis of potential store performance are indispensable components in making informed business decisions and managing capital expenditure, particularly in the post-pandemic and high cost-of-living environment.  

ScS were keen to utilise its existing data assets and key performance indicators, aligning them Experian market intelligence data to deliver increased confidence in marketing and store investment programme.

Challenges
  • Widen their target market
  • Forge stronger relationships with customers
  • Invest into existing and new showrooms to improve customer experience
View ScS Profile
Company Bio:

ScS is one of the UK’s leading sofa and carpet specialists. Founded in 1894, in Sunderland, Tyne and Wear, the retailer now has 100 stores across the country as well as operating online and over the phone. Today they employ over 1,500 people across the UK and are also listed on the London Stock Exchange.

Company information:
Founded:1894
Number of stores:100
Industry:Retail
The valuable insights provided through our collaboration with Experian have been instrumental in shaping our growth strategy and contributing to the refresh of our brand. The data-driven approach has allowed us to make informed decisions about our expansion, identify new opportunities, and ensure that our brand evolves in line with our customers’ needs and preferences.
Marie Liston, Corporate Services Director at ScS

Solution overview

ScS are long standing Experian Mosaic users, enriching their first-party CRM data base to drive insights into target customer segments and the types of products they buy. With their view of the UK population, Experian analysed the ScS target audience across the catchment areas of ScS’s retail parks, spanning both existing and potential locations.  

By utilising existing store revenue data, performance was correlated with existing sites to help pinpoint the optimum future locations for potential exploration. The analysis also considered the potential cannibalisation of sales across current stores as well as competition density. Furthermore, Experian leveraged retail location mobility footfall insights into the model to get a view of pre- and post-pandemic statistics to assess current location pull.

90% of the potential options reviewed by ScS were discounted in light of Experian's insights, demonstrating the invaluable role of data and scorecards in streamlining the decision-making process.
Use data and insights to help plan store location strategy
Results
  • Experian enhanced mobility data provided additional confidence in revenue potential forecasts
  • Revenue data analysis identified optimal locations based on catchment audience
  • Location scorecard developed for location assessment and investment decisions
Solutions
Using data and insights making store location strategy

Experian helps inform ScS with their store location strategy

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