Site location is the key to the success of any retail or leisure
development.
You can change management but you can't change
your site.
Generally supermarkets close as a result of poor location,
non-competitive prices, and market saturation.
Usually price wars can be ironed out without too much difficulty.
Market saturation is a subject on which MPC has done a great deal of
research. We now have our own statistical tool for the measurement
of retail saturation.
The problem mainly lies in the fact that some supermarkets shadow
their competitors and open stores in adjacent areas to new
openings. Usually this fails to close one or other of the stores
resulting in loss of profitability for both. This sounds - and is-
an inefficient method of trading.
However, in France there is now evidence that some of the dinosaurs
of the hypermarket retailing world are beginning to "eat" each other as a
result of over-saturation. Mergers and takeovers are taking place
where the number of stores can be reduced and overall sales and
profitability per store can be improved.
MPC's site location and development services (see relevant pages in Retail
and Leisure) relieve
clients from the worries of failure in opening new retail outlets and
leisure activities.
If you would like more details of the MPC Predictor - a
statistical tool for the measurement of retail saturation, please email
us direct on mpc@mpcassociates.com
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