Do you measure the payback of TV advertising, sports sponsorship and the profitability of your warehouses by EBIT? You think that’s short sighted? Why then do you measure retail stores with basically the same functions (branding, community building, shipment handling) by its P&L alone?
Retail executives often struggle to objectively evaluate the store performance of their portfolio due to changing market dynamics and consumer behaviours pre- and post-Covid. The good old Footfall Utilization Index (FUI) might be of help.
There was an almost sinister feeling of relief in the boardroom. Until a firm voice cut through the silence with a final question: Well done fleet review team. But which 5 stores are the most productive, which are the 5 least productive and why? (more…)
Customise or standardise? That’s perhaps the most important question a brand at the beginning of its international expansion has to answer.
Depending on who you ask, you will get very different answers. If you ask your brand and marketing management, they will vote for as much standardisation as possible. If you ask your sales force, the answer will be quite the opposite.
Moving from retail to e-com to omnichannel, sound financial budgeting is ever more important for brands today. In this article we share some key learnings to help your teams plan better during the upcoming budget season.
Despite constant change and disruption in today’s market, retail location is still an a key success factor. Do you know what type of locations are best for your format?
International sales growth remains mostly dynamic post pandemic. But as financial reports show, growth rates have decreased for many. Be it in the US or in Europe, especially domestic-bound retailers and brands stumble.
Global expansion in sales and distribution competence has become a lifesaving strategy feature, but allow me a question first:
After a tumultuous year that almost saw the company drowned by its previous strategic investor, German vertical retailer Hallhuber found a financial investor in Robus Capital Management. Management of both firms agrees to invest in brand growth.
Finding the right assortment size is a key question for retail performance projects. Learn about a simple method to determine assortment size for retailers with several stores in comparable locations.
Marketplaces are the largest digital D2C distribution channel. Get ready for the KPIs in digital marketplace distribution that measure whether your brand is ready to meet today’s demanding end-consumer needs.
When brands need to reshape their portfolio and close stores, they face the challenge of improving Like-4-Like performance at the remaining points of sale. The two product strategies introduced here help improve the top and bottom line of your P&L.
Improving like-4-like performance often focuses on mechanics and triggers that can be influenced by sales staff and a retail organisation. Surprisingly, it often excludes an honest evaluation of the assortment’s performance. This article shows how improving hit rate and using best seller potential can push sell-through, create incremental sales potential, reduce mark-downs and improve the gross margin. (more…)
While excellent staff and service are what distinguishes brick and mortar from online retailers, staff performance is often overlooked in store evaluations. Two new KPIs help account for the human factor.
When evaluating a retail portfolio, very often mangers only look at the financial results of a store. But excellent service, competent and dedicated sales staff are a key differentiator of brick and mortar retailers. A fair and objective store staff performance evaluation is therefore increasingly important. This article introduces two new KPIs that help to fairly evaluate staff performance and to determine optimal staffing for each store in your portfolio.
This is the second installment of a short series that dives into a few uncommon KPIs for successful retail portfolio management. Learn how traffic cost and footfall per hour can help you renegotiate rental contracts.
For many years, retail expansion was the main growth strategy in the brand retail world. More recently, however, brands increasingly face an under-performing retail portfolio. Realising that retail expansion doesn’t work without like-for-like growth of existing stores, brands are busy assessing their retail portfolios in order to focus on profitable stores and stores with potential for improvement.
Brand growth management already has many KPIs. What omnichannel measurement do you use to determine the payback of your investment?
Summertime is brand strategy planning time, when brand managers prepare for battle with their KPIs to prepare for new recruiting and securing a higher share of next year’s investments for their channel. But consumers have fundamentally challenged that profit centre logic. Perhaps it’s also time to rework your brand investment planning and the KPIs that measure brand growth success?
Bestseller Management is one of the most important processes to improve sell-through and mark-down in the consumer goods industry. What KPI helps identify bestsellers and make smart decisions about them?
Some companies like Zara, Kennel & Schmenger or s.Oliver excel at managing bestsellers. While Zara works with sophisticated analytics to alter bestselling styles by fabric, color or detailing, s.Oliver masters bestseller management to a degree that endangers its potential to innovate.
Aiming for the world’s most affluent consumers in highly competitive environments: Adidas’ ‘Top City Strategy 2020’ is at halfway, what is best practice and what can you learn for your business?
It’s widely known that consumer markets and brand distribution channels have fundamentally changed over the past 25 years in more ways than anticipated. Fact is, the internet as a brand distribution channel grew from 0 to commonly 8-15% of sales. But far more relevant from a commercial and strategic perspective is that many formerly emerging countries, especially China and countries in the Middle East and Central Europe, grew to 30-40% of total sales and profits in lifestyle brand distribution.
Traditional retail landscapes are undergoing disruptive changes. Many brands reshape their portfolio and close down stores, while facing the challenge of improving the Like-4-Like performance of their remaining points of sale (POS).
This post introduces 3 low-cost ways to push sell-through, reduce mark-downs and improve the gross margin.