The challenge

The client – a leading Australasian beauty retailer – needed help transitioning to a more flexible brand ranging model, to ensure the best performing brands were assigned to each store to fill the available space in each department.  

Prior to working with us the client’s operating model had relied on ranging all brands to all stores regardless of available space.

The solution

Working with the client’s buying team, we developed a brand offer construction methodology that ensures full coverage of all key customer needs across each store and department.
All brands within were then ranked with each customer need grouping, based on a combination of customer importance and commercial performance metrics.
We then developed tools to assign brands to available department space in ranked order, and to balance across customer needs to assist the client team in planning brands to fit each store.

The results

Through ensuring each store selected the best-ranked brands a 4-5% sales and margin growth opportunity was identified. Inventory savings are also enabled by not ranging all brands in all stores.