News Feed Item

Mapmechanics Consultancy Provides Location-based Market Insight Into Retail Mergers

LONDON, March 20, 2017 /PRNewswire/ --

With Tesco announcing their £3.7bn merger with wholesale food seller Booker in late January, hedge funds and investment banks are now moving to take advantage of locational analysis to establish the financial impact of the proposed merger.

     (Photo: http://mma.prnewswire.com/media/480115/Tesco_Aberdare_bbg3.jpg )

The merger will result in Tesco's share of the convenience store market increase to 28% and as with any intended merger of this size, the Competitive Markets Authority (CMA) is examining the deal and using geographic analysis to help inform their decision.

The Mapmechanics consultancy team are able to replicate the types of geographic analysis that the CMA will carry out in advance, revealing the business and trading landscape of both parties. We are able to examine the locations of convenience stores owned by Tesco Group, Booker Group and the competition, analysing the geographical makeup of these to produce a series of statistics and insights that reveal the extent of the competition in the convenience store market.

This is crucial information for hedge funds and investment banks worldwide, indicating the possible consolidation of retail estates following the CMA's official decision. This type of Locational Analytics is becoming more prevalent for institutional investors to gain a strategic advantage and can help with current and future investment strategies.

Locational Analytics was used by the CMA in the Ladbrokes-Coral merger to understand market saturation in given geographic areas. In addition, the Office of Fair Trading (OFT) used geographic insight to help adjudicate on the Costcutter-Mace merger.

Using the geographical analysis strategy ['crow flies' (straight line) distances] used by the CMA for Ladbrokes-Coral, the headline findings for Tesco-Booker are that:

  • 2,192 Tesco Convenience stores (63% of all Tesco Convenience stores) are within 1 mile of a Booker Group brand store
  • Within 1 mile of Tesco Convenience stores, Booker Group brand stores currently make up 18% of the market (leaving 82% with the rest of the competition)
  • There are a number of Tesco store locations where Booker Group brand stores are the only market presence within 1 mile and an even greater number of locations where this true within ½ a mile

Alternatively, using the analytical approach taken by the Office of Fair Trading (OFT) in the case of the Costcutter-Mace merger [utilising drive-time catchments between retail outlets], for Tesco-Booker we identified that:

  • There are zero Tesco Convenience stores where a Booker Group brand store makes up the only competition within 5 minutes' drive
  • There are a number of Tesco stores that only have limited competition (less than 2 competitors) within 5 minutes' drive.

The above headline results show just two differing analytical approaches to answering the competition question. Of course, by changing the distance or drive-time used in the research, the results will differ. Our full geographical findings can be acquired by contacting the Mapmechanics team.

In addition to our consultancy service, Mapmechanics assembles, configures, formats and distributes a wide range of data and digital map products for use within Equity Research as well as advanced geographic business intelligence (GeoBI) and geodemographic information that can assist you to more accurately inform your next investment decision.

About Mapmechanics
For 30 years Mapmechanics has provided map based technologies that help companies to increase profitability whilst offering excellent customer service. We help organisations identify the best solution for their business needs together with consultancy, bespoke development, training and technical support.

We own leading optimisation software brands Truckstops vehicle routing and Optisite for supply chain planning, modelling & analysis. Through the allmapdata brand, we provide a broad range of digital geospatial datasets as well as GIS and locational software solutions. For more information visit http://www.mapmechanics.com

For further information:
Mandy Moss
[email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...