Retail Consultants vs. In-House Teams: What’s Better for Expansion?

Retail expansion is a distinct make-or-break opportunity for businesses who want to grow in marketplaces. The fundamental question for brands to consider is whether to rely on their own resources or engage experienced retail consultants. Both options have their advantages, and the choice depends on several factors. This includes scope of the project, nuances of the marketplace, and internal areas of expertise.

The article below provides a comprehensive look at the performance of one option over the other through various viewpoints of retail expansion – from go-to-market strategy to retail project management. As common SEO terms related to retail site planning, strategic market entry, and expansion feasibility are explored, this guide eventuates and provides a thorough assessment about which option best represents your business vision and future growth objectives.

Understanding the fundamentals between an in-house team and an external retail growth advisory partner is fundamental to mitigate risk and grow responsibly in an evolving marketplace.

Understanding the Role of Retail Consultants

Rather than giving mere advice, retail consultants are a third-party expert that helps a business navigate complex retail strategies. A consultant that has not only the expertise, but also the experience to put implementation-ready solutions into place with their extensive retail experience. Whether it’s a go-to-market strategy or assessing the feasibility of an expansion into an unknown market, consultants can provide companies with proven methodologies that have been tested across different industries and countries.

To provide retail location intelligence that is predictive and based on current and real-time data is invaluable for a business to make informed decisions. For a company that is developing a franchise or expanding into unknown territory, a consultant is a change agent who can simplify processes, mitigate risk at implementation, and move a brand into the market more practically. A consultant can provide a different perspective as an outsider and will often identify gaps that your internal teams may miss while optimizing operational role and layout and brand identity during periods of growth.

The return on investment (ROI) that a business can expect from a consultant is especially notable when a retailer is developing multi-stores, when coordination and standardization of brand and particularly services are paramount. In a word, retail consultants can provide strategic insights and support execution, which creates accelerated, structured growth.

The Capabilities of In-House Retail Teams

In-house retail teams have great knowledge of the organization and are aligned with the core values and long-term vision of the brand. In-house teams are positioned to leverage what they know about their organization, stakeholders, and customers, while inclusive in-house change strategy likely reflects the organization’s values. When managing an in-house business as usual in retail, the logistical operational consistency is ensured amongst the organizational departments.

In-house teams may only have experience with preparing a strategy for entering new markets or optimizing store networks through previous internal projects. There is the potential for their bandwidth to be stretched by aggressive growth and if project management of retail sites has previously been implemented across a smaller scope, it is likely that they may not yet have developed the specialist skills or market insights that an experienced retail consultant could provide.

In-house project teams will provide businesses with cost predictability and control for businesses where they can develop and execute their retail expansion process at a steady pace and with lower levels of organizational complexity, but the challenge may be ensuring that their internal capabilities are nimble and knowledgeable enough to expand their organizational operations across new geographies and types of retail models.

Go-to-Market Strategy: Consultants vs. Internal Execution

Developing a comprehensive go-to-market strategy requires a full understanding of the customer, market structure, competitive landscape, and channel strategy. Retail consultants will typically develop a benchmark of what is common in the industry, conduct in-depth market research, and align all steps with practical business outcomes.

The consultant’s strategy is structured in specific steps, to reach performance earmarks for speed and accuracy. In contrast, in-house teams typically have better alignment considering the brand story, but they may lack the benchmarking, analytical framework, and independence that retail consultants can offer. Further, in-house teams may operate with a legacy system or be influenced by the politics of a corporation that limits experimentation.

Retail consultants can quickly tactical pilot test new models of doing business which is something that can be critical in an omnichannel market space. A verified go-to-market strategy from a consultant will typically reduce trial-and-error time frames for new regions or product lines, allowing brands to develop early wins rather than having them wasted. For companies looking to rapidly grow in existing markets or enter more complex markets, they may have a better experience and results applying a consultant’s analytical and market based strategy.

Retail Site Planning and Location Intelligence

Proper location selection is paramount for retail success. Retail consultants utilize sophisticated retail location intelligence tools to investigate and analyze foot traffic dynamics, demographic trends, competitive overlap, future zoning, and catchment area behavioral change. Their site selection process is fueled by research, and often use predictive analytics to determine future performance.

Most in-house retail real estate teams do not have the time and effort put into utilizing the predictive analytics and location intelligence tools, and are happier to rely on generational, experiential knowledge and/or local brokers, often leading to biased, ego-based decisions. Consultants can not only understand and assess immediate proximity to complementary stores, but also determine access points, parking, ease of access, zoning issues and overall regulatory ramifications, all of which impact your bottom line.

As brands expand into unfamiliar markets, this independence and reliance on analytics takes a lot of the guesswork away and can add a lot of value. Furthermore, consultants can ensure your retail site selection and planning align with long term store network analysis.

Internal teams may excel in area analysis, store layout, and branding compliance, but consultants ensure you are investing in or choosing the best ground to build on. When everything is on the table, it makes absolute sense to outsource this important decision to professionals and get competitive leverage.

Expansion Feasibility and Strategic Market Entry

Before a business enters into a new geography, it should analyze whether the expansion is feasible—a complex examination of market readiness, capital expenditure, regulatory landscapes, and consumer demand. Retail consultants can conduct comprehensive feasibility studies which include financial models, operational scalability, and supply chain developments.

They have experience in multiple markets, and are great at spotlighting hidden risks and newly arising opportunities. Internal teams may have feasibility capabilities, but they may not have the same level of access to neophyte data or third-party networks, nor will they likely have keen consultants working alongside them on expansions, which is especially important when outlining strategies.

In addition, consultants provide an embedded method of quickly harnessing frameworks that can enable managers to make decisions when there is considerable uncertainty to do so. When an organization’s growth has to be aggressive but, at the same time, sustainable; using outside experts is, at times, a more sustainable and safer bet. Brands that work solely with in-house views may fail to identify key signals that affect success in new geographical regions.

Franchise Development and Store Network Optimization

Adopting a franchise model in business requires a unique methodology in terms of selecting partners, developing franchise agreements, developing franchise guidelines, and establishing reasonable evaluations. Retail consultants who have experience in franchise model development have step-by-step frameworks and legal agreements to allow business operations without ambiguity. They can also help develop an operations manual and onboarding framework that standardizes the franchisee’s processes.

While an internal team may be able to build a franchise model, they may not effectively fulfil their franchise partners’ needs for growth and brand awareness; and may have difficulty scaling or lack the capacity to manage their franchise partners. Similarly, a review of a store fleet entails maximizing the performance of underperforming locations and ensuring future stores are located in areas with high potential. Retail consultants have the benefit of employing location intelligence and benchmarks to find the right mix of stores in the right areas.

However, internal teams lack the tools and data analytical capabilities to effectively manage the degree of efficiency needed as they expand their store fleet. With their fresh approach and tech-backed location modeling, retail consultants can get tactical about your footprint to help you maximize profitability. For brands in growth mode, more onboarding and better communication with all franchises does ensure that decisions are made in fact and data, not assumptions.

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