Case Studies

Northern Tool

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Page 0 of 1 1 + NORTHERN TOOL'S EXPANSION STRATEGY: LEVERAGING DATA-DRIVEN INSIGHTS FOR INFORMED DECISION-MAKING Northern Tool + Equipment, a family-owned business, has been a prominent player in the retail industry for over 40 years. With a presence in more than 130 retail stores, a robust catalog business, and an expansive online channel offering a diverse range of products, Northern Tool is focused on expansion. The company's partnership with Tango, spanning ten years, has been instrumental in guiding their strategic growth decisions. CHALLENGE With a growth strategy to aggressively expand store growth over the next five years, Northern Tool sought data-driven solutions to drive expansion, particularly in new Midwest markets. They aimed to optimize site selection, minimize risks, and cater to evolving customer profiles in various regions. INTRODUCTION APPROACH Northern Tool collaborated with Tango to utilize market optimization models and analytical tools to identify optimal locations and infill opportunities. They looked at Northern Tool's goals, expansion plans, customer profiles, and location preferences to find the right solution. Expansion Plans and Customer Profile Northern Tool's expansion strategy targeted both existing and new markets such as Kentucky and Ohio. The customer profile differentiation between Southern and Midwest regions was noteworthy, providing Northern the opportunity to delve deeper into what has been driving category sales in each region. Store Preferences and Destination Approach Northern Tool's unique store preferences set them apart as a destination store. They seek locations with heavy traffic, particularly near interstates, to accommodate customers traveling longer distances. Quick and easy access is vital due to the wide catchment area they serve. The company's preference for free-standing stores in suburban areas emphasizes their commitment to providing convenient access to their retail locations.

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