To maintain their competitive advantage, most large retail companies dedicate a generous fixed budget to store remodels/closings each year. This decision is influenced by multiple stakeholders with competing priorities (e.g. reducing revenue loss from remodel construction, maximizing sales lift from remodels, improving direct competitive edge in each market). Aligning the stakeholders and organizing the data required to effectively predict and weigh decision criteria requires a significant investment of time and capital. Instead, most resort to suboptimal and incomplete processes, discounting the valuable potential of their historic data.
What combination and sequence of store remodels and/or closings best achieves the company’s strategic objectives?