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?

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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, an agile approach and supporting tools were implemented to identify high and low selling lines where store distribution could be optimised.
For the longer term, a combination of commercial scorecard data and customer metrics were key 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.

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The results

Testing of our approach in selected categories supported the potential for strong sales and a smaller and simpler range.
Short term opportunities of +AU$3m, or 1% of the client’s current margin were identified along with potential sales uplift of >25% over the longer term.