““But a retailer cannot slice and dice its customers at the brand level (i.e. chain) to the same degree. A retailer who seeks to target only 20% of the potential market is already on thin ice. Retail coverage (i.e. the physical footprint of a store’s catchment area) dictates the target audience for each store, which means that the audience is relatively heterogeneous: everyone who lives within the store catchment area. A large mainstream store has to generate volume at each unit level as most of the costs, such as building, staff and stock, are local; therefore, because of retailers’ sensitivity to small volume changes that we saw in Chapter 2, the more shoppers the better. Thus,””
