Retail store expansion strategies are one of the most fundamental issues for growing retailers. Opening a new store can be a game changer if you get the location right, or your new store could be doomed to failure if the location doesn’t attract enough customers.
In addition to geographical factors, such as transportation accessibility and real estate prices, demographic factors and mobility patterns in the areas of interest play a key role in decision making. These data on population, purchasing power and consumption habits are what generate an optimal expansion strategy.
Retail home improvement franchises need to apply location intelligence techniques and foot traffic analytics to identify consumer mobility patterns, in order to maximize sales and generate more efficient expansion models.
The correlation between foot traffic, visits, sales, and the success of hardware home improvement franchises have been studied and proven, so the development of this type of analysis has become a priority in the site selection process and expansion modeling.
The fuel company has announced a regional expansion process in El Salvador, Honduras and Panama.
Juan Salazar, manager of the company, explained that in 2013 they plan to open 75 stations in these countries, with a total investment of $48 million and an average cost of $500,000 per facility.
The company began in 2010 in Guatemala with one gas station, by the end of 2011 it had 16 and it now has 37 plus a further 21 planned in this country by the end of 2012, according to elperiodico.com.gt.
The Panamanian airline will invest $1.3 billion over the next 5 years in 36 new aircraft and training of another 200 pilots.
Copa Airlines will be expanding in the coming years with a total investment of $1.3 billion which includes the acquisition of several new aircraft including 10 Boeing 737-800 "Next Generation" in 2012, in order to complete a fleet of 79 craft.
The largest financial institution in Colombia is looking in Latin America for good opportunities to acquire assets.
Bancolombia started its regional expansion in 2007 by buying Banagrícola in El Salvador, for $900 million.
Although the president of Grupo Bancolombia, Carlos Raul Yepes, notes that "for now there aren't any businesses that are catching our eye," he did confirm that they are looking for businesses that are "good, nice and cheap."
Panama and El Salvador are seen by Grupo Sura as countries "with political, social and macroeconomic stability" for their expansion projects.
The president of Colombia's Grupo Sura, David Bojanini, said his holding company plans regional procurement in countries that provide economic, political and especially legal security.
"They are looking at countries like Mexico, Panama, Peru, Chile, Salvador and Uruguay, but we are now in the process of consolidating the investments to be made," the businessman said in an interview with Larepublica.co.
The Swiss oil company has completed the takeover of the assets of Exxon Mobil in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
The Exxon Mobil assets to be transferred to Puma Energy include 300 service stations, two refineries, the addition of three terminals, two airports and a marine bunker fuel supply which supplies 20% of the regional market, all of which involves managing a 20 million barrels of oil per year.
Banmédica is the largest private health organization in Chile, with investments in Colombia and Argentina, and with subsidiaries in the insurance sector.
With an average investment of $70 million annually for the past 12 years, Banmédica provides a wide range of health-related services, including clinics, laboratories, medical centers and medical rescue units. It also provides health insurance services.
Company executives visited El Salvador to discuss malls and evaluate the possibility of investing in new stores.
The Spanish chain reported that its sales in Latin America have reported growth rates above 10%, which is encouraging them to explore the possibility of expanding in that market.
Isak Halfon, the Executive Vice President of International Expansion for the company, , said on a visit to El Salvador that "Latin America has got out of the financial crisis and is now growing," while José Gomez, the vice president of International Business Development, said "if things continue as they it will be a very prosperous decade for Latin America. "
From Guatemala, the firm Inbev, distributor of the Budweiser brand, is seeking to expand in the region.
The multinational, which has a portfolio of over 200 brands and operations in 80 countries, aims to promote Budweiser beer massively in Guatemala, where it already holds 20% of the market share and then to expand soon to El Salvador and Nicaragua.
The air transport company has increased by 50% its cargo flight capacity to 19 weekly flights.
Guatemala, Nicaragua and Panama are three of the countries which receive large capacity UPS flights from Miami. UPS has decided to expand in response to increased demand experienced in Latin America.
The firm will use its Boeing 757 cargo plane, which will be replaced by a new B-767 aircraft, which is larger and hence has more capacity.
The Honduran banking group has opened its first regional agency in the Panamanian banking center.
Camilo Atala, Grupo Ficohsa’s chairman, said the headquarters in Panama will serve as a platform to expand into the rest of the Central American market.
An article in Laprensa.hn contains statements by the executive, "Ficohsa will operate with international license in Panama,.
The company announced expansion plans for Central America and the Caribbean market.
From Panama, Denis Barbier, chief executive, said the company has strengthened its presence in Latin America with four assembly plants.
"Olivier Murguet, commercial director of Renault for America, stated that 2011 is the "year of the re-launching" of the European brand in Central America, the Caribbean and Ecuador" reported Elperiodico.com.gt.
The Brazilian energy company opened an office in Panama to coordinate and expand its activities in Central America.
In late January a company committee will travel the country to find a location and a law firm to represent them.
As part of its internationalization process, the corporation is looking for assets in Central America, where it already owns the Tumarín project in Nicaragua, representing 220 MW.
The Honduran corporation, which specializes in energy and infrastructure projects, feels its development has slowed within its own country.
Terra directors' sights are now set on clean and renewable energy projects in Costa Rica and Panama, having already completed and inaugurated its Guatemalan hydroelectric project at Xacbal.
Iván Vásquez, writing for Elheraldo.hn, reports comments from Terra Group president, Fredy Násser, on the company's successes in neighboring countries and the difficulties it has suffered at home in Honduras.