One of the biggest mistakes retail expansion professionals make when tackling a problem is thinking too big and too “strategically”
This leads to excessive complication, filled with dreams, numbers and sophisticated presentations, in the end, nothing is implemented.
Don't get us wrong, there are times when thinking BIG is necessary.
However, in most cases, solving the small problem at hand exceptionally well is what really matters.
Let's say you're thinking about expanding a chain of stores.
Start with a segment
Instead of focusing on a broad segment, start with a micro segment.
For example, focus on opening stores in residential neighborhoods with high growth potential.
These neighborhoods have common needs when it comes to:
- Consumer preferences
- Local competition
- Available infrastructure
Instead of targeting a generic and huge market, you now have a small, focused group.
Solve their problems and become obsessed with making the shopping experience exceptional.
Talk to residents at those locations, attend community events.
Solve their problem so well that customers say, “Wow, this store really improved our community!”
From micro to multi
Once you nail the growing residential neighborhoods segment, you can cover other segments.
Why not reach out to emerging business areas?
Or maybe urban centers with a high population density?
Grow step by step to cover different segments of the retail market.
Take it slow, because if one direction doesn't work, you can easily try another one.
It's about adaptation.
From the multiple to the adjacent
After consolidating your presence in a variety of segments, what's next?
You can target adjacent segments with similar needs.
They also have similar characteristics in:
- Inventory turnover
- Standard of customer service
- Marketing strategies
From adjacent segments to a scalar power
Once established in adjacent markets, think about what else your customers might need.
Maybe integrated logistics solutions or customized payment systems.
Since you're already working closely with them, it's easy to introduce new services.
Step by step, you expand from a niche business to a powerhouse that serves multiple segments.
Be patient, great accomplishments take time.
The approach we described may take at least 5 to 10 years to fully establish itself.