Using Analytics for Space Planning at S Group
In 2000, S Group had nearly 30 percent of the market share in Finland. They had strong market-position with hypermarkets and supermarkets and the concept was built on price-leadership (Everyday Low Price (EDLP)) and cost efficiency. They realized that gaining additional efficiencies would not be possible without collaboration across the value chain from farmers to customers.
If they continued their growth strategy of opening new stores to drive new sales, they expected new stores would begin to cannibalize sales from existing stores, rather than increase market share around the year 2015. Thus, increasing existing store sales was