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In other words, the successful retail concept in one area may not necessarily translate into another successful retail concept in another area. The owner must evaluate how much ?°customer loyalty?± is there in the original area and consider all financial aspect of the existing business including lease conditions and whether the success of a particular retail concept is a ?°fortuitous synergy?± between the concept and unusual demographic conditions.
The article continues to discuss the three components of expansion strategy: geographic strategy, ownership strategy and rate of expansion.
In terms of geographic strategy, the owner must consider whether to open the second retail site close to the original retail site, focus on major metropolis or to use the ?°jump back and fill?± where the second flagship store is opened and backfilling it with additional retail stores...
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