A Framework for Network Planning

Highlights the integral link between the location of a particular format of retail outlet and the benefit which they offer to the customer segments which they serve. Outlines a simple conceptual framework for planning store networks which can be used as a starting point for a variety of retail businesses. This depends on the degree of portability of the product and the emphasis placed by the customer on the relative importance of convenience and comparison in the buying process. Four principle types of retail location positions are identified by the framework and the main locational factors or “drivers” of the success of each are explained. Underlines the importance of retailers recognizing the ongoing nature of the network planning process, involving store rationalization, relocation and refurbishment, as well as the roll out of new store concepts. It is anticipated that the framework should prove useful both to retailers setting out on a formal process of network planning as well as to planning authorities who recognize the need to understand the factors driving the locational decisions of the various types of modern retail format.