demo-cosmetics

Space, Range & Display reset for health & beauty retailer

We identified financial opportunities totaling HK$190m.

The challenge

With more than 300 stores in its network, our client – a leading health & beauty retailer based in Hong Kong and Macau, approached us to help develop & implement a comprehensive Space, Range and Display transformation across its stores.

The solution

Working with the client’s project team, we helped design & deliver a three-part program that focused on macro space, micro space and a Space, Range & Display process improvement.

As part of the focus on macro space, we developed a localised Space Allocation Model for differing customer demands over a diverse array of stores.

We also integrated category-strategic priorities & key business initiatives into recommendations, optimised category flows & adjacencies, and supported delivery of a space reset across the store network.

Our micro space focus involved generating integrated customer & commercial metrics to guide the reset and simplification of all category ranges. We also standardised the assortment planning process.

Lastly, we built more effective Space, Range & Display processes and capability, and developed range review processes and support tools.

The results

The financial opportunities for macro space improvements were estimated at HK$150m gross profit p.a. (+5-6% GP growth). Micro space improvements were projected to add a further HK$40m GP p.a.

These opportunities were validated through store trials and a full network rollout program.

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