With increased competition affecting sales and sales composition, our client – a leading UK news, stationery and book retailer – needed help to better understand its competition and how best to react to threats to profitability.
After working with the client to quantify the impact of different competitors, we developed a number of localised strategies.
These included pivoting to emphasise other strengths, as well as addressing local competition head-on with up-weighted local marketing, more aggressive pricing and increased customer engagement.
On our advice, the client increased local marketing and implemented more aggressive pricing on products in key competed departments.
Complementing this approach, the client increased differentiation through expanding its offer in less competitively-impacted departments.
On implementing our recommendations, the client has enjoyed strong space productivity in competed locations, while more aggressive local pricing has led to overall market share gains in heavily competed departments.
We identified a 4-5% sales and margin growth opportunity for beauty retailer through ensuring the best available brands are selected for each store.
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.