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.
Two Costa Rican bookstores are preparing for new openings in 2015 in the country and expansion into El Salvador, Honduras and Nicaragua.
With a format combining a bookstore and gift shop, music and videos, Librería Internacional and Lehman are looking to expand both in the Costa Rican market and regionally. In line with this strategy, Librería Internacional this year opened two new stores in San Salvador, while in Costa Rica two new branches were opened.
The Dos Pinos Costa Rican dairy cooperative is negotiating the purchase of a plant in Nicaragua and is working on setting up another one in the Dominican Republic.
In an interview Nacion.com by Marvin Barquero with Rodolfo Barrantes, president of Dos Pinos, the official confirmed that the regional expansion strategy of the company is still moving forward.
The National Insurance Institute will resume this year its plan to expand its operations to the countries of the region, investing $300 million in the process.
The National Insurance Institute (INS by its initials in Spanish) intends to be the majority shareholder or acquire 100% of a company with regional presence, a project suspended in 2009 when the company faced opposition from institutions such as the Comptroller General of the Republic, the Pensions Superintendency and the Attorney General's Office.
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.
The Costa Rican firm has announced the opening of more stores in U.S. and Costa Rica.
Last February, the Pops ice cream chain opened its first branch in Miami measuring around 100 m2 and with an investment of $500,000. This was an initial step, because as well as operating this site in a mall in Pembroke Pines, it plans to open two more ice cream parlours in Florida during 2012.
The Panamanian bank is continuing its expansion plans in Central and South America.
Multibank, an entity founded on Panamanian capital, intends to consolidate and expand its share of the banking sector in Colombia and Central America, where it has already acquired full control of Macrofinanciera SA (Colombia) and the incorporation of the company Multi Resuelve (Costa Rica), focused on financing the purchase of cars.
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.
With an investment of $2.5 million, the multinational will serve Central America and the Andean region from an office in Panama.
President of the Andean Region and Central America at Unilever, Fernando Acosta, told the press that the company has not ruled out expanding its investments in the country in the near future, such as opening new service centers and factories.