Growing revenue through store-specific, optimised brand ranging

The challenge

A leading Australasian beauty retailer wanted to improve their approach to range and space management by moving from ranging all brands in all stores to a data-driven brand ranging model designed to allocate space at store level to achieve optimal outcomes in each department.

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The solution

Working with the client’s buying team, we developed a brand assortment methodology that ensured coverage of all key customer needs within each store and each department.

Using advanced data-science, brands were able to be ranked based on a combination of critical factors including customer need, customer importance and commercial performance metrics.

Through our space intelligence methodology, brands were reassigned to available department space in ranked order and data-driven space allocation recommendations were provided to assist macro space planning tailored for each individual store.

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The results

Through ensuring each store ranged the best-ranked brands for their store size and location, the retailer realised 4-5% sales and margin growth. Choosing to no longer range all brands in all stores also resulted in inventory and supply chain efficiencies and cost reduction.

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