Challenge
“Transform store performance to deliver incremental $250m of annual run-rate revenue”
- Research indicated 1 out of 7 customers dissatisfied with experience (of which 40 to 80% do not intend to return)
- 75% of consumers entering the store receive no help
- Value perception lags competitors; Store rated as “very hard to shop”
Approach
“Shift focus from operations to sales and service”
- Conducted store network diagnostic and designed target state store operating and sales/service models
- Tested hypotheses, refined and integrated solutions and planned network-wide implementation
- Scaled proven operating and sales/service models across store network
Results
“$275M sales growth and $68M margin contribution in 9-months: 14x ROI”
- Repurposed $20M of sales and service capacity through improved efficiency
- Achieved 4.5% improvement in conversation rate
- Increased average order value (AOV) 14% over network
- Implemented standard work to sustain and improve new performance levels
Final Thoughts
Sales and Service model scaled across network in 9-months; Delivered results valued at $1.4 billion of incremental revenue with a flow-through margin impact of $238m over 5 years.
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