PLACE (DISTRIBUTION) Considering the market opportunities (Section 3.6) and the strategic objectives (section 4.2) this report recommends that Stella should enter the NZ market through a flagship store with a high level of technological integration (Section 5.4) The store will explore the concept of experiential retail (Upside Down retail) to meet the shift in consumer needs since the acceleration of phy-gital stores following Covid (McKinsey, 2020). The store will encompass the brand’s identity
5.3.1 STRATEGY IMPLEMENTATION: PLACE
through the design, location and digital elements (Chen, 2020) The location of the freestanding flagship store will be in Auckland which will efficiently capture demand in the new market (Section 5.3.2) (Figure 12). Auckland has become the largest contributor to NZ’s GDP and highly attractive retail destination for luxury (Pwc, 2020). Opening a freestanding store near NZ’s largest shopping mall (Sylvia Park, Auckland) will allow Stella to capitalize on the district’s reputation as an iconic shopping destination (Wilkinson, 2020). A longterm strategy, once the store thrives in Auckland may be to expand into other cities, such as the capital, Wellington. The flagship store will effectively reflect the world of Stella with a green and modern atmosphere and will strategically complement the brand’s portfolio of stores worldwide. Figure 12:: New Zealand Map (Google Images, 2021)
