Do you measure the payback of TV advertising, sports sponsorship and the profitability of your warehouses by EBIT? No?
Why then do you measure retail stores with the same role (branding, community building, shipment handling) by its P&L alone?
L4L
How to Improve Your Hit Rate and Make Good Use of Bestseller Potential
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…)
These 3 Quick Wins Increase Sell-through and Push Gross Margin
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.
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Retail Performance: I Like Like for Like – I don’t Like Like for Like
H&M gave up their monthly reporting in July. An indication of an ailing retailer? Debatable – Zara never did it in the first place.
Three years after H&M gave up on like for like reporting, they stopped publishing monthly sales figures altogether. H&M follows the path of other well-known retailers that no longer publicly report monthly details of their like for like retail performance. (more…)
24 Thoughts on How to Benchmark Retail Windows
Retail windows are expensive advertising spaces and often miss their commercial potential. We share 24 thoughts to inspire great window performance.
Our 2016 retail term of the year is ‘loss of traffic’. Internet competition brought another year of loss in consumer footfall. Many of our retail friends struggled to keep momentum and to motivate for improvements in sales.
Abercrombie – stripped of the Beach Models, It’s all about the Business Model
If you are a great brand and plan to grow in international retail, make sure you have a competitive brand business model. It takes more than six packs to be successful.
As the beach boy six packs are no longer in action, what is the brand’s competitive edge? Can you remember any new store opening hype lately for Abercrombie? In 2011, at the height of Abercrombie & Fitch’s international expansion, we looked for the first time at the brand’s P&L and its retail KPIs (see retail intrapreneur). In 2011 alone, US$230m in capital expenditure was spent on expansion in Asia and Europe. The US management was counting on the success of the brand’s international expansion. We questioned whether the business model was ready for European growth.
Units Per Ticket Below 1: Get Effective in Cross Channel
In times of decreasing store footfall and sales, brand retailers focus on driving L4L strategies. This article advises how to drive sales per ticket.
In the old days, higher average selling prices were a convenient strategy to grow competition. This often worked, even though the number of tickets came down. But over the last few years, many retail managers focussed on monitoring conversion rates and units per ticket when driving same store performances – now we may have to look for new ways to grow L4L sales. (more…)
