SPR has developed an innovative methodology for estimating the “holding capacity” of a retailer’s brand across regions; even the whole country.
The goal of a typical project involves establishing a reasonable ultimate chain size for the company. We typically select a limited set of well-established markets (e.g. 5 or 10 MSAs) to explore their composition and characteristics and determine additional opportunity for expansion, i.e., “holes”. Then we will use the findings from these individual market “drill downs” to extrapolate across the 333 MSAs in the country. For the purpose of risk assessment we can provide three store count projection levels: “conservative”, “aggressive” and “average”.
The output of this analysis includes a table that lists each MSA in the nation (or region) and the count of existing stores and the projected count of total stores that each MSA can support as well as associated market profiles (population, key demographic segments, etc.). We include an overview map showing the MSA boundaries as well as the existing store locations.
Below is a sample table of results across the country by market area.
Below is an example of mapped findings for a specific region (Deep South).
