How to best implement a shift from brand-led range selection, often focused on the introduction of new lines, to a process supported by performance assessment tools?
To facilitate this shift, we developed recommendations for the client – a leading Australasian beauty retailer – based on both near-term and longer-term implementation.
For the near term, we developed an agile approach and supporting tools to identify high and low selling lines where store distribution could be optimised.
For the longer term, we combined a scorecard of commercial and customer metrics as inputs to a redesigned, comprehensive range selection approach. This approach ensures delivery of a complete customer offer and an optimised selection of items across all stores.
Testing of our approach in a selected category indicated the potential for strong sales and a smaller and simpler range.
We identified short term opportunity of +AU$3m, or 1% of the client’s current margin. Furthermore, a potential sales uplift of >25% was identified for the detailed category example, indicating very significant opportunities over the longer term.