Wachovia’s Branching Strategy: Building Share in Key Neighborhoods
I’ve been impressed with Wachovia’s ability to acquire premium retail branch locations in Texas. They have consistently found prime corner sites, often in upscale, built-up markets where good retail space is hard to find. The scuttlebutt in the market is that they are paying a huge premium over prevailing rates to get what they want. Perhaps there is some truth to this, but I believe the primary reason for their success is very well coordinated and focused distribution strategy.
Wachovia has opened several branches in the Park Cities, one of the most affluent areas of Dallas. I was particularly struck by this creative “repurposing” of a former gas station — it is a good example of how Wachovia is figuring out ways to create branching opportunities in the neighborhoods where they want to gain share, rather than have their distribution strategy driven by real estate availability.
