Approaches to retail network optimisation in South Africa

There is always a framework within which retail network optimisation occurs. Frameworks define the association between consumers in the target market and the spatial location of retail outlets. A key part of this is understanding the market characteristics and conceptual aspects of retail networks. Frameworks facilitate understanding the complexities of the spatial interaction of retail facilities and consumers in the target market to optimise the size and distribution of retail networks.

Spatial interactions are defined by parameters such as travel time/distance for customers to reach a retail facility and the minimum number of customers needed to ensure the financial viability of retail facilities. Accessibility is a key part of these spatial interactions that is dependent on the availability of road infrastructure and the various modes of transport used by consumers. Understanding the purchasing behaviour of consumer has become a vital component in defining the target markets, market share, basket sizes, and frequency of spend using data from the Marketing All Product Survey (MAPS). The locating of retail facilities where there is the clustering of economic activity is vital in creating economies of scale and bringing about economic growth.

These aspects will be explored showing how geospatial data on retail facilities and competitors, target markets and consumer behaviour and their spatial interactions influence the development of optimised retail networks. The presentation will include lessons learnt from conducting accessibility studies in the motor, insurance, fast food and clothing industries and providing government services. The presentation will show that one size does not fit all in the development of the retail industry in South Africa.

Join us on Thursday 13 April between 11am and 12pm to learn all there is to know about retail network optimisation in South Africa.