White paper

Location: Setting Prices for a Store in the City Center

Convenience stores saw their sales rise by 5% in 2025 (NielsenIQ), driven by smaller, more urban households that make smaller purchases at a time. Their prices are significantly higher: in November 2024, there was an average price difference of 26% between a major urban convenience store chain and the cheapest walk-up pickup service, and nearly 35% for national brands (UFC-Que Choisir). A store-size adjustment applied across the entire product lineup effectively adds a premium to the very products that customers compare.

This white paper shows how to allocate the proximity premium rather than applying it as a coefficient: three shopping trips, costs not borne by the hypermarket, three price tiers with their respective index ranges, one benchmark competitor per tier and per store, and a test in control stores. Verified figures from 2024 to 2026 (INSEE, NielsenIQ, a3distrib, Kantar Worldpanel, UFC-Que Choisir, Xerfi, Codata, Ipsos).

By downloading it, you will discover

  • Why a single price adjustment factor is costly: it adds a surcharge to the products being compared and leaves room for profit on impulse purchases
  • How to organize the catalog into three tiers and assign an index range to each tier rather than a price
  • How to Avoid Labeling Pitfalls: Price Differences Per Kilogram Between Sizes, Price Thresholds, and Product Line Ordering
  • Which key competitor should you consider in the city center: a pedestrian-accessible drive-through, an urban discount store, a neighborhood mini-market, or a fast delivery service?
  • How to measure customers' actual tolerance through a pilot store test before rolling it out to the entire fleet
Cover of the BOOPER white paper: Proximity: Setting Prices for a Downtown Store

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