"When you put data up against a gut feeling, the data wins more than 50% of the time."

In this episode, Andrew Neelon, founder of 1REC and SVP of Development & Strategy at Elase Med Spas, discusses the intricacies of retail site expansion and market selection. He shares insights from his experience at Bonobos, highlighting the importance of data-driven decision-making in site selection, the unexpected successes and failures of various locations, and the contrasting dynamics of e-commerce and brick-and-mortar retail. Neelon emphasizes the need for DTC brands to understand unit economics, forecast ROI accurately, and navigate the complexities of staffing and lease agreements. He also challenges conventional wisdom in site selection and advocates for a nuanced approach to understanding customer demographics and market saturation.

Chapters:

(00:00) Introduction to Retail Site Expansion

(03:27) The Evolution of Bonobos: From E-commerce to Brick-and-Mortar

(06:31) The Power of E-commerce Data in Site Selection

(09:15) Unexpected Successes: Case Study of the Shea in DC

(12:27) Lessons from Failed Locations: The Walnut Street Experience

(15:29) Understanding the Economics of E-commerce vs. Brick-and-Mortar

(18:32) Strategies for DTC Brands Considering Brick-and-Mortar

(21:32) Forecasting ROI for New Retail Locations

(24:24) Step-by-Step Process for DTC Brands Entering Retail

(29:04) Navigating the Chaos of Opening a New Store

(29:41) Market Selection: Beyond E-commerce Data

(32:03) Understanding Market Saturation and Competition

(34:24) Scaling Store Locations: The Complexity of Expansion

(38:28) Store Rationalization: Cost Management and Metrics

(44:08) Lease Agreements: Understanding the Financial Implications

(45:07) Operational Considerations in Site Selection

(47:25) The Role of Pop-Up Shops in Market Testing

(50:49) Marketing Strategies for New Store Openings

(52:44) Challenging Conventional Retail Site Selection Methods

Follow Andrew Neelon on: LinkedIn | 1REC | Substack (Clicks to Bricks)

Listen to Consumer Code on: Spotify | Apple | YouTube

Follow Lyden Foust on: LinkedIn | Instagram

About Spatial.ai:

Spatial.ai’s PersonaLive is an advanced consumer segmentation platform for developing data-driven marketing strategies. PersonaLive categorizes U.S. households into 17 groups and 80 segments using consumer behavior data from transactions, mobile visits, and social media activity, providing marketers with deep insights for effective audience targeting. From mid-sized retailers and agencies to Fortune 500 companies, hundreds of businesses use PersonaLive to drive strategic decisions and enhance marketing performance. 

Learn more at spatial.ai or schedule a free 30-minute demo.