Case Study
Consultancy ForNike
Case Study
Consultancy For Nike
Performance analysis of the existing Nike store network in China and formulating a strategy for multi-city growth.
The Challenge
Nike asked GMAP to apply an objective approach to measuring the performance of each store within their existing network. Additionally, GMAP were required to formulate an Ideal Network Plan for Nike's expansion strategy – including recommendations for new store openings, store formats and increasing the floorspace of existing stores – to optimise Nike’s growth and forecast their potential returns.
The Approach
- Current and future national market sizes were quantified using demographic, competitor stores, market research and ‘points of interest’ datasets for the different store formats (‘Sports’, ‘Sports Inspired’, ‘Kids’ and ‘Digital / Online’) within 50 focus cities. City rankings were then provided.
- For each Trade Zone (TZ) within each of the 50 cities, Nike’s market share was reported and benchmarked, and headroom (potential incremental sales) was calculated. Each TZ was categorised into 'Maintain', 'Invest' or 'Review' based on sales per square metre vs the total market potential using a quadrant chart to assess store performance.
- The capacity of each TZ was split by liquidation and full price to help decide the future investment type (outlet or standard).
- GMAP’s bespoke Spatial Interaction Model was used to estimate the flow of consumer spend within each city to the defined Centres & TZs. This provided insight into the capacity of every Centre & TZ, as well as competitor presence.
- The market potential was forecasted, acknowledging future and infrastructure developments. Impact Scenario Modelling was used to assess the future capacity of TZs.
The Conclusion
GMAP’s TZ capacity analysis provided Nike with
invaluable support towards their retail network planning strategy for investment and optimisation in China, whilst assessing future changes to the retail landscape.
Enquire for GMAP Location Intelligence
Get in touch to find out how our location planning consultancy and location intelligence data and software solutions could support your business.
The Challenge
Nike asked GMAP to apply an objective approach to measuring the performance of each store within their existing network. Additionally, GMAP were required to formulate an Ideal Network Plan for Nike's expansion strategy – including recommendations for new store openings, store formats and increasing the floorspace of existing stores – to optimise Nike’s growth and forecast their potential returns.
The Approach
- Current and future national market sizes were quantified using demographic, competitor stores, market research and ‘points of interest’ datasets for the different store formats (‘Sports’, ‘Sports Inspired’, ‘Kids’ and ‘Digital / Online’) within 50 focus cities. City rankings were then provided.
- For each Trade Zone (TZ) within each of the 50 cities, Nike’s market share was reported and benchmarked, and headroom (potential incremental sales) was calculated. Each TZ was categorised into 'Maintain', 'Invest' or 'Review' based on sales per square metre vs the total market potential using a quadrant chart to assess store performance.
- The capacity of each TZ was split by liquidation and full price to help decide the future investment type (outlet or standard).
- GMAP’s bespoke Spatial Interaction Model was used to estimate the flow of consumer spend within each city to the defined Centres & TZs. This provided insight into the capacity of every Centre & TZ, as well as competitor presence.
- The market potential was forecasted, acknowledging future and infrastructure developments. Impact Scenario Modelling was used to assess the future capacity of TZs.
Enquire for GMAP Location Intelligence
Get in touch to find out how our location planning consultancy and location intelligence data and software solutions could support your business.
The Conclusion
GMAP’s TZ capacity analysis provided Nike with
invaluable support towards their retail network planning strategy for investment and optimisation in China, whilst assessing future changes to the retail landscape.
