As part of a rapid store roll out, the client – a leading Hong Kong health and beauty retailer – sought our help to optimise floorplan flows and adjacencies in a customer-centric and strategically-aligned way while they were resetting macro and micro space across the store network.
Undertaking detailed, big data analysis of all available category adjacency combinations and permutations (hundreds of thousands of potential options), we developed adjacency recommendations that considered customer cross-shopping behaviours and the client’s strategic growth priorities.
These recommendations provided an intuitive, easily-shoppable layout flow to minimise customer walk-time to build their basket.
Stores where category adjacencies were optimised during the macro space reset delivered c.2% stronger sales and margin growth than stores where the existing flow was retained.
The stores also benefitted from an increase in floor layout consistency across stores and simplified customer shopping missions.
We identified profit opportunity totalling more than AU$50m for a leading Australian department store chain.
We identified short term opportunities worth AU$3m, or 1% of the client’s current margin, and longer-term potential to deliver up to +25% sales growth.