Denis

07.04.2023

Location is a crucial factor in the success of any business. In the UK, many successful brands have used innovative and effective location strategies to grow and thrive. In this article, we will look at some of these successful strategies used by UK brands and what businesses can learn from them.

1. Nando's: Focusing on Urban Centers

Nando's, the popular South African restaurant chain, has become a household name in the UK. One of the keys to their success has been their focus on urban centers. By opening restaurants in busy city centers, they have been able to tap into a large and diverse customer base. They also take advantage of foot traffic and public transport to attract customers. Their success in urban locations has allowed them to expand their presence across the UK.

Lessons for businesses: Consider the demographics and foot traffic in your target location, and focus on urban centers with high foot traffic to reach a larger and diverse customer base.

2. Tesco: Analyzing Demographics

Tesco, the UK's largest supermarket chain, has a vast network of stores across the country. One of the keys to their success has been their careful analysis of demographics. They use a range of data sources, such as census data, to understand the age, income levels, and lifestyle habits of people in different locations. This information helps them to tailor their product offerings and marketing strategies to specific demographics, ensuring they meet the needs of local customers.

Lessons for businesses: Analyze the demographics of potential locations to understand your target audience and tailor your product offerings and marketing strategies accordingly.

3. Costa Coffee: Expanding in Non-Traditional Locations
Costa Coffee, one of the largest coffee chains in the UK, was founded in 1971. It is now the largest coffeehouse chain in the UK, with over 2,800 stores worldwide.

Costa has used a creative location strategy to expand its presence. They have opened coffee shops in non-traditional locations such as petrol stations, hospitals, and even bookstores. By doing so, they have been able to reach new customers in areas where traditional coffee shops may not be available.

In the early 2000s, Costa Coffee began to expand rapidly in the UK, opening new stores in high-traffic areas such as airports, train stations, and shopping centers. The company also developed a presence in other countries, including China and the United Arab Emirates.

One of the key factors that contributed to Costa Coffee's success was its ability to adapt to local markets. For example, when the company expanded into China, it developed a menu that included popular Chinese drinks such as green tea lattes and red bean frappes.

However, not all of Costa Coffee's expansion efforts were successful. In 2017, the company closed nearly 30 underperforming stores in the UK due to declining sales and increased competition from other coffee chains.

Lessons for businesses: Look for non-traditional locations to expand your business and reach new customers.

4. Odeon Cinemas: Investing in Upgrades
Odeon Cinemas, a leading cinema chain in the UK, has invested heavily in upgrading their existing locations. They have added luxury recliner seats, IMAX screens, and other features to provide a premium cinema experience. This investment has not only helped to attract more customers but has also allowed them to charge higher prices for tickets.

Lessons for businesses: Invest in upgrading your existing locations to improve the customer experience and increase revenue.

5. Greggs: Building a Local Presence

Greggs is a UK-based bakery chain that was founded in 1939. It now has over 2,000 stores across the UK.

One of the key factors that has contributed to Greggs' success is its ability to adapt its menu to changing consumer preferences. For example, when the company noticed an increasing demand for vegan and vegetarian options, it developed a range of meat-free products, including vegan sausage rolls and steak bakes.

Greggs has also been successful in targeting new customer segments by opening stores in unexpected locations. In 2019, the company opened a new store in a service station on the M6 motorway, which quickly became one of its most profitable locations.

However, not all of Greggs' expansion efforts have been successful. In 2013, the company opened a new store in Cornwall that was designed to look like a traditional Cornish pasty shop, but it struggled to attract customers and closed after just six months.
Moreover, Greggs has built a strong local presence by opening multiple locations in the same area. By doing so, they have become a part of the local community and built a loyal customer base. They have also used their local presence to offer special deals and promotions to local customers.


Lessons for businesses: Build a local presence by opening multiple locations in the same area and offering special deals and promotions to local customers.

6. Boots:

Boots is a UK-based pharmacy chain that was founded in 1849. It now has over 2,500 stores across the UK and Ireland.

One of the key strategies that Boots has used to succeed in different locations is to tailor its product offerings to meet the needs of local customers. For example, in its stores in London, Boots offers a wider range of skincare products and cosmetics to cater to the city's fashion-conscious consumers.

Boots has also been successful in leveraging its reputation for quality and reliability to expand into new markets. When the company opened its first store in Thailand in 1997, it focused on providing high-quality products and services that met the expectations of Thai consumers.

However, Boots has also experienced some setbacks in its expansion efforts. In 2019, the company announced that it would be closing nearly 200 stores in the UK due to declining sales and increased competition from online retailers.

In conclusion, these UK brands have used innovative and effective location strategies to achieve success in their respective industries. By analyzing demographics, focusing on urban centers, expanding in non-traditional locations, investing in upgrades, and building a local presence, these brands have been able to reach a wider audience and build a loyal customer base. Businesses can learn from these strategies and apply them to their own location strategies to achieve similar success.