Retail Store-level Performance
A 100-store retail chain experienced significant performance variation across locations which was negatively impacting overall results. ROIG’s Store Performance Management process introduced a better way to extract actionable insights and also helped identify and close material gaps in performance. We shared our data-informed "secret sauce" on the processes and behaviors needed to optimize top, average, and bottom-performing stores.
Performance Improvement Success Story
THE CLIENT: A 100-store retail chain
THE CHALLENGE: Across the chain, stores generated significantly different sales and profitability results, yet the drivers were not evident due to conflicting data points.
THE GOAL: Identify underlying drivers of store performance variability and address operational issues as well as process gaps to optimize performance in all stores while specifically improving underperforming ones.
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THE ROIG SOLUTION: Using advanced analytics, categorized all stores into “like” comparable stores and approached the data-centric challenge with a holistic gap management approach.
ROIG's holistic gap management approach included the following 5 areas:
Metrics
Establish the metrics that matter and define key drivers
Incentives
Set up an incentive system to extract desired behaviors
Benchmarks
Implement benchmarks for store-level performance tracking
Lifestyle
Instigate a shoulder-to-shoulder coaching approach for sustainability
Best Practices
Identify best practices to close gaps
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ROIG used advanced analytics to categorize stores into “like” comparable stores and categorize stores into one of 5 buckets. Each bucket represented materially different behaviors that the company wanted to incentivize. Store manager base salary, preformance bonuses, and other recognition programs were designed to reinforce the behaviors required to be a "top performing" store.
Using the top performance stores and industry targets to establish best practices in sales (repeat, conversion, ASP, basket), labor (wage, commission, hours/staffing), and P&L management practices, these benchmarks were then shared across the chain using advanced gap management approaches. ROIG further taught the regional leadership team how to perform this work using a shoulder-to-shoulder model
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(952) 417-6394
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6400 Flying Cloud Dr #110, Eden Prairie, MN 55344