Discount Gyms, Domino’s, & Hotelling’s Location Model
In Practise Analysis
inpractise.com/articles/discount-gyms-dominos-and-hotellings-competitive-game
Over the last few months, we've been studying the strategy of ‘fortressing / clustering’ stores in different retail markets. This topic piqued our interest as it’s an explicit strategy of two business models we’ve followed closely for a decade: discount gyms and Domino’s Pizza.
We recently interviewed the former CEO of both Domino’s Pizza Group and The Gym Group to understand how fortressing is deployed in each market:
This analysis explores when and how clustered markets of gyms and DPZ stores works and the potential long-term risks. Our work is focused around one core question: how durable is the earning power from clustered and non-clustered markets of discount gyms / Domino’s stores?
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