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September 14, 2006

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"I'm just a poor down-to-earth grocer"

that's what we love :-)

Michel, you wrote: "And there's a retail law I shall give : the bigger the store, the higher the square foot revenue ! It simply works in every retail segments. It's no magic, it's mechanics !".
I find this rule very interesting and had never actually thought about it. However, I don't understand the underlying mechanics. Could you please elaborate a little bit on the system? Many thanks in advance.

Sure Jeremy, it stroke me as well when I was a young consultant at Bain & Co, working on retail issues.

But thinking it over, it makes sense :

The bigger you are, the more choice you offer, the better prices you offer, the more possibilities you have to advertise, therefore a higher throughput and higher square foot revenues...

As for the data itself, I don't have them at hand, but once a year you have "panorama de la distribution" from "Point de Vente" magazine. It gives sales and square foot revenue as this is a key indicator in the retail business.

It for example gives the square foot revenue for small super market (supérette), supermarket, hypermarket. It works perfectly well.

The law is wonderful.

Many thanks for your explanations Michel. Next step for me is to look for revenue / retail space data and see by myself.

One more question: does the rule apply to the restauration business?

You're welcome.

Well, re the restaurant business, I don't have any data, but I don't see why it would work ?

Price and product range criteria, linked to size, are irrelevant there !

That's what I thought as well. I'll still look for data when I have time, since results might be counter-intuitive.

More specifically, the architectural issues alone in the "developing the application" stage are often left to the developer or distributed to architectural teams.
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Thank you Michel about the E-comerce post, really nice. hang on

I like so much this part or article... thanks for wrote.. have a nice day!

I quite like this blog, I would like in the future learn more of this.

Hi, I think your article its very important and interesting,good work, thanks for sharing!! Have a nice day!

The problem with people who have no vices is that generally you can be pretty sure they're going to have some pretty annoying virtues.

The problem with people who have no vices is that generally you can be pretty sure they're going to have some pretty annoying virtues.

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