The Challenge
Tokyo Retail Group operated 47 stores across three prefectures, but their financial planning relied on historical averages that couldn't account for location-specific variables. When supply chain costs started fluctuating in late 2023, their standard 10% markup model began failing at certain locations.
Our Approach
We developed location-specific models that considered foot traffic patterns, local competition, and regional economic indicators. Each store now has its own scenario framework that tests different pricing strategies against local market conditions.
The Results
Within four months, they identified seven underperforming locations where targeted adjustments improved margins. More importantly, they now confidently evaluate new locations using the same modeling framework, reducing expansion risk significantly.