Beauty retailer develops customer-led range selection

The challenge

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?

The solution

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.

The results

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.

outcome

We identified short term 'quick win' opportunities worth AU$3m, or 1% of the client’s current margin, and longer term potential to deliver up to +25% sales growth through range selection and distribution changes
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