Designing an optimal retail branch network at An Post
An Post, Ireland’s postal operator, was facing a number of challenges in their retail business. These challenges included changes in customer buying behaviour, increased take-up of internet services, growing competition from new entrants, and a large and complex product portfolio.
PA Consulting Group (PA) supported An Post in undertaking a review of their retail strategy and helped to design an optimal branch network that maximised profitability while meeting their obligation to serve the community. We developed a model to enable An Post to evaluate the impact of different strategic options on the future of the business and to guide decision makers on where to open or close outlets.
The model took into account a large number of factors, such as population size and location, customer profile, business models, branch costs and the number of acceptable closures per year. It was used to evaluate the impact of a great number of strategic options and enabled An Post to achieve substantial cost savings across their retail branch network
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