Strategic Retailer Network Planning – Example hagebau
The geo and location analysis tool provides support for real estate valuation, location development and sales area optimization
Case Study Overview
Customer: hagebau Handelsgesellschaft für Baustoffe mbH & Co. KG
Application: Location and retailer network development, market and potential analysis
Goal: Optimization of the retailer network, comprehensive analyses, time savings
Use: 8 users from the departments: Strategic Location Development, Business Intelligence & Analytics, Contract Management, Shareholder Development
The hagebau Group is one of the 500 most important companies in Germany. As of 2021, the cooperation includes around 350 legally independent, medium-sized building materials retailers in the specialist and retail trade, who together operate more than 1,600 locations in Germany and abroad. This makes for very complex dealer network planning. In order to optimally develop locations, shareholders and the network, hagebau uses the geo and location analysis software WIGeoLocation.
Always in Focus: The Potential Demand in the Vicinity of a Location
The tool is used in four departments. It supports the objective decision-making for or against a location through quick and in-depth analysis results. The software not only saves time, it also provides a sound basis for decisions. “The focus is always on the question of what potential demand exists for a hagebau store in the area surrounding a location. To determine the demand, it is important to not only consider the purchasing power of the residents in an area, but also the competitors and their strengths,” explains Bianca Blunck. She is responsible for franchise agreements at hagenbau and is also the project manager for the introduction and further development of WIGeoLocation for hagebau.
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Strategic Location Development: From the Initial Appraisal of Real Estate Offers All the Way to White Spot Analysis
“WIGeoLocation is used in several departments at hagebau. For example, in Strategic Location Development,” reports Blunck and continues: “The colleagues from the Strategic Location Development Department work with the software on a daily basis. On the one hand, they review real estate listings. An initial assessment of the real estate offers is extremely quick and easy with WIGeoLocation. On the other hand, they actively look for so-called white spots, i.e. for locations in regions that are not yet well supplied with do-it-yourself providers and therefore hold potential for hagebau.”
Business Intelligence & Analytics: Sales Forecasts for New Locations and Existing Locations
Another department at hagebau that benefits from the location analysis tool is Business Intelligence & Analytics. “With WIGeoLocation, our BI specialists carry out extensive and in-depth analyses of sales revenue forecasts for potential new locations. Many location factors, external data and internal data are included in these analyses, such as the partner card data. Such analyses are also performed for existing locations if they are to be expanded or converted,” says Blunck.
Contracts: Definition of Contract Areas and Overlap Analyses
WIGeoLocation is also used in the Human Resources and Law, Contract Management Department. Bianca Blunck explains: “We use WIGeoLocation to define contract areas for the hagebau stores and to keep track of their protection. Furthermore, we prepare overlap analyses if there is a risk that a new hagebau store could skim off sales from an existing location in order to assist in negotiations between the shareholders involved.”
Sustainable Shareholder Development
The hagebau Group grows by taking on new shareholders. This should be done sustainably and in harmony with existing shareholders. The analyses from WIGeoLocation help to ensure exactly that. Blunck explains: “When taking on a new shareholder, we analyze their locations with regard to how close they are to existing locations. If they are close to other locations, the neighboring shareholders are invited to a special negotiation before taking on the new shareholder.
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Preconfigured Reports, Time Savings and Ease of Use Were the Decisive Criteria
hagebau had used geoanalysis tools for many years before the group switched to WIGeoLocation in 2020. “The need for recurring analyses was constantly increasing, which made it necessary to find an easier and faster way to process all these analyses. Our old tool did not offer the option of realizing this with preconfigured reports, but WIGeoLocation did,” says Blunck, explaining the change in provider. Furthermore, from a technical point of view, much less prior knowledge is required, so that trainees can also provide support if necessary, says Blunck. “In addition, WIGeoLocation is available online and, if necessary, an initial, quick analysis can be performed on the go to assess whether a location could be lucrative. The biggest advantages of WIGeoLocation, however, are the enormous time savings per analysis and how quickly and easily colleagues can learn to use the tool.”
Working Together to Develop an Ideal Solution for hagebau
Bianca Blunck is satisfied with more than just the time savings, ease of use and excellent cost-benefit ratio. The support during the development phase and the current service are also outstanding. She says: “During the development, we always had the feeling that the WIGeoGIS team was not only interested in selling us the software, but also in working closely with us to create the ideal solution for hagebau.”
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