Strategic Retail Location
1—Executive Overview
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CLEO boxes in the
competition's superstore in this scenario, closing 101, 108 and 112 in
favour of
three new sites.
Hypothetical data; real recommendations. You may not want to be quite
so predatory. This merely illustrates how CLEO can
be programmed.
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Getting a retail location right is worth at least $2-10
million.
That's the cost of shutting down and moving one
store, depending on the type and size of outlet. The value of a good
location is much more.
You have to open several stores a year. How do you
get them all in the right place?
Competitive Location Evaluation and Optimization (CLEO)
is a suite of retail location models that pushes the frontiers of
location science, to identify the very best sites in a multi-store
market. CLEO incorporates behavioral models,
operations research, financial models and
decision support.
CLEO's demand allocation model
uses much the same geospatial data as others do: distribution
of
demand, street configuration, drive time and the attractiveness of
shopping alternatives. What's unique to CLEO is another layer of
behavior
modeling, more realistic than generic
gravity and Huff
modeling. Next, CLEO offers a second set of
models that lets you look at a myriad of options by shuffling stores
around thousands of times and picking the best configuration. Third,
the
decision
support
system helps you manage the options and formulate a locational
investment
strategy to meet corporate objectives and performance measures—sales,
market share, ROI, avoiding cannibalization.
Fourth, there's the custom service. CLEO
is not a generic cookie-cutter solution. We work with your
market data analysts, real
estate specialists and operations planners. You focus on the management
questions. We're
buying this other chain; how do we rationalize the
combined network?
Which of the older generation stores are most dispensable? Should they
be upgraded? How to model the site factors unique to our business, or
the culture of the locale? How to assess the
competition? What's the best way to play what-if games?
We translate your business strategies
into locational and financial models. CLEO does the math and generates
the reports. We can tune
CLEO to
come
up with battlefield-like encircling
maneuvers (illustration) or gracious, neighborly moves.
To our knowledge CLEO is the most advanced retail
location software
available. This is consistent with our record. We were the first to
migrate location-allocation models from mainframe computers to PCs
(1982). The first
to model traffic and impulsive shopping (1983). We couple expertise in
modeling
with
careful and knowledgeable geographic business analysis.
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