Case Study: Transforming Retail Store Positioning for Growth
Client Overview: Our client is a home shopee retail business operating with two brand categories in three retail outlets. The business had a loyal customer base, but their growth was stagnating due to challenges they were unaware of.
Background: We connected with the client through a business forum, leading to a site visit to their primary retail unit. The visit revealed a significant issue impacting their customer experience and overall sales performance.
Identifying the Problem: While observing customer interactions and conducting interviews, we identified that the primary issue was not the products or services—which were highly appreciated by customers—but the physical location and accessibility of the retail outlets.
A notable instance involved an elderly customer who accompanied her family to purchase products for a newly married couple. Due to the lack of a lift and the long walk to the store, she was unable to fully participate in the buying journey. This highlighted a broader issue: the store’s location and infrastructure were causing discomfort and limiting customer engagement.
Research and Analysis: To validate our observations, we conducted:
- Customer Interviews: Conversations with several clients confirmed that while they valued the products and services, the inconvenience of the store’s location deterred them from fully enjoying the shopping experience.
- Competitor Analysis: We assessed competitors in the same niche and identified the importance of accessible and strategically located retail spaces.
- Sales Data Review: A correlation was found between foot traffic and store accessibility, which directly impacted sales.
Results: The relocation and relaunch strategy yielded remarkable results:
- Increased Foot Traffic: A 45% increase in customer visits within the first three months of the relaunch.
- Higher Conversion Rates: Improved in-store experience led to a 30% rise in conversion rates.
- Revenue Growth: Topline revenue grew by 60% in the first year post-relocation.
- Customer Satisfaction: Surveys indicated a 90% satisfaction rate, with customers praising the improved accessibility and expanded product range.
Solution: We presented our findings to the brand owner, emphasizing the importance of relocating to a more accessible and strategically advantageous location. After a series of in-depth discussions, the client agreed to the relocation strategy. Our support included:
- Site Selection: Identifying a prime location with better accessibility and visibility.
- Relaunch Planning: Designing a comprehensive relaunch strategy to attract new and existing customers.
- Brand Diversification: Adding two new product categories unique to their niche to enhance the store’s appeal.
Key Performance Indicators (KPIs):
Customer Retention Rate: Increased from 70% to 85%.
Average Transaction Value: Grew by 25% due to enhanced product offerings.
New Customer Acquisition: 40% of customers in the new location were first-time visitors.
Conclusion: This case demonstrates the transformative impact of addressing foundational issues such as location and accessibility. By aligning the retail strategy with customer needs, we helped the client unlock significant growth and establish a stronger market presence.
If your retail business faces challenges in growth or customer engagement, let us help you uncover the underlying issues and craft a tailored strategy for success. Contact us today to schedule a consultation and start your journey toward transformational growth.
