Store Optimisation Strategy: Maximising Performance and ROI Across Your Network

In an ever-changing retail environment, ensuring that each store within a network is performing to its potential is a critical priority.

Store optimisation strategy is the art of evaluating the performance of every store, identifying its role within the broader network, and aligning resources to maximise revenue, profitability, and brand impact.

The goal? To maximise customer reach and shopping frequency while minimising operating costs and cannibalisation between stores.

This approach not only improves current network performance but also serves as a launchpad for future growth.

Central to store optimisation are four key categories that every store should fall into: Invest, Relocate, Maintain, and Divest. Here’s how they work, along with the ROI and benefits they bring.

1. Invest

Investing in a store is about capitalising on untapped potential. These are locations where the store is performing well but has headroom for growth—whether through increasing capacity, refreshing the store design, or expanding the product range.

For example, imagine a store in a growing urban area where footfall has increased 15% year-on-year due to local development. A strategic investment in layout improvements and inventory could boost sales by 20%, translating into significant ROI.

ROI/Benefits: Increased revenue, enhanced brand presence, and higher customer satisfaction. Investments often lead to a ripple effect, strengthening customer loyalty and market dominance.

2. Relocate

Sometimes, a store’s trade zone is viable, but its exact location is suboptimal. Relocating a store—perhaps to a higher-footfall area nearby—can dramatically improve performance.

For example, consider a store operating on the edge of a busy shopping district. Moving it just a few streets closer to the centre could double footfall, translating into a 30% increase in sales. Relocation strategies require careful evaluation of cost versus benefit but can deliver transformative results.

ROI/Benefits: Improved market coverage, higher customer convenience, and a stronger competitive position. Relocating ensures resources are allocated to high-potential areas.

3. Maintain

Some stores are exactly where they need to be. These are your steady performers—meeting expectations without significant risks or opportunities for improvement. The strategy here is to maintain their current operations while keeping a close eye on performance trends.

For example, a suburban store consistently meeting its revenue targets might not require further investment but would benefit from ongoing operational efficiency measures, such as optimising staff levels or inventory management.

ROI/Benefits: Stable revenue streams, efficient cost management, and a foundation for network-wide stability. These stores often anchor your portfolio.

4. Divest

Sometimes, tough decisions are required. Stores in unviable trade zones with limited growth potential are better candidates for closure or divestment. Divesting allows resources to be reallocated to higher-performing locations or new opportunities.

For example, a store in a declining area with shrinking footfall and high occupancy costs might generate minimal returns despite significant effort. Closing this store could save costs and prevent brand dilution.

ROI/Benefits: Cost savings, improved network efficiency, and the ability to focus on profitable growth. Divesting underperforming stores strengthens the overall health of the network.

A Strategy for Success

At its core, store optimisation is about aligning resources with opportunity. By investing in high-potential locations, relocating to optimal sites, maintaining steady performers, and divesting from unviable stores, retailers can achieve a balanced and profitable network.

Beyond immediate ROI, this strategy offers broader benefits: enhanced brand perception, maximised customer reach, and reduced cannibalisation between stores. It also serves as the foundation for future growth.

Once a network has been optimised, retailers can more confidently identify opportunities for new store locations, secure in the knowledge that their existing portfolio is performing at its peak.

Optimise Your Store Network to Grow

Store optimisation isn’t just about fixing what’s broken—it’s about creating a high-performing network that supports long-term success.

At h3hex, we specialise in delivering data-driven optimisation strategies that drive measurable results. Let’s work together to maximise your network’s potential and build a foundation for growth that lasts.