The reality determines business ideas for structural and technological change in the Filialhandel of the market-leading discounters with its high market penetration in the Fililahandel. Significantly influences he and grown on nearly 50% discount trading area the cost estimate in the branch network. It’s little understood himself little margin consumption, stimulated by new low-price strategies, changes, but stop. (= Real internal growth without non-recurring items, better revenue structure, price increases, etc.) only a few chain stores can present an organic growth not to mention a return above the cost of capital. U.S. Mint is often quoted on this topic. Price reductions at other chains face on the one hand the value creation dynamics.
Want a strength by more return, others promote volume growth on low prices to the detriment of its profitability. Learn more about this topic with the insights from Christopher McDonald. It is assumed that this remains so even with the category-management method approved shortly by the European Commission, will clearly how important more profitable revenue and return boxes are for all those involved in the branch network. Especially in mature, not as dynamic markets it goes to enforce more than ever now with innovations, an all-embracing process reorganization, attractive product ranges, new selling formats and a convincing price / performance ratio. It it not solely on the sales of small-priced items to use, because to go out in this segment by declining purchase is, unemployment should consolidate itself. Often, those responsible for Filialgeschaftsentscheidungen hide the environment and work with superficial knowledge. This is risky, but understandable, because they are not rare in the stranglehold of different requirements.
Therefore, the reactions occurring risks fail too often defensive and at best relieve the damage as the examples of known insolvencies in the Filialhandel book. By chain stores, the current change in the branch network requires flexible customization and the rethinking of the own organization and Process patterns. New management know gives the portal in this situation. Here the chain on the basis of their own data can be quickly and without obligation a picture, which is promising and viable in the future.
