Space, Range and Display reset for health and beauty retailer

The challenge

With more than 300 stores in its network, our client – a leading health and beauty retailer based in Hong Kong and Macau – approached us to help develop and implement a comprehensive Space, Range and Display transformation across its stores.

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The solution

Working with the client’s project team, we helped design and deliver a three-part program that focused on Macro Space, Micro Space and Space, Range and Display process improvement.

We developed a localised Macro Space Allocation Model for differing customer demands over a diverse array of stores. We integrated category-specific strategic priorities and key business initiatives into recommendations, optimised category flows and adjacencies, and supported delivery of a space reset across the store network.

Our micro space focus involved generating integrated customer and commercial metrics to guide the reset and simplification of all category ranges and standardising the assortment planning process.

In the third stream, we designed and embedded more effective Space, Range and Display processes and capability, and developed Range Review processes and support tools for ongoing use by the Range and Space team.

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The results

The financial opportunities for macro space improvements were estimated at HK$150m gross profit p.a. (+5-6% gross profit). Micro space improvements were projected to add a further HK$40m gross profit p.a. These opportunities were validated through store trials and a full network rollout program.