Location, location, location
For consumer businesses with a winning formula, an aggressive roll-out strategy can prove hugely successful. David Prosser looks at how - and where - to go about it.
What do the two most eye-catching IPOs on the London Stock Exchange so far this year have in common? Well, apart from the fact that both Poundland and Pets at Home are retailers, both grew with a similar strategy. They found a formula that worked, first in a single store, and then rolled it out nationwide to create a network of outlets that also delivered the goods.
It’s not new. This sort of roll-out programme can be an attractive way to develop any business that depends on new outlets for growth. These businesses are most commonly found in consumer-facing sectors such as retail, leisure and food and drink. But there are other examples too – business services companies, or accountants and lawyers that target local firms in their communities.
Still, while it is possible for these businesses to expand quickly and aggressively by repeatedly applying a formula that works in one place in the same way in a similar location elsewhere, don’t make the mistake of thinking it’s an easy trick to pull off.
Find out more
Corporate Finance members
Why not join the Corporate Finance Faculty and gain full faculty benefits