Goal

The retailer in the home decor segment is located in a prestigious market enclave dedicated to furniture & interiors solutions. The retailer wanted to bring more focus to certain project services it offered and improve sales from its showroom.

Solution

We observed that the retailer carried a very wide range of product categories and also straddled a long range of price points from very small pick-me-ups to those that called for deliberate decision making.
We also took note that the retailer was situated in a space where serious decorators or architects were normal visitors rather than passing-by general retail consumers.

We first analyzed the previous sales data to find what constituted ‘the tail’ (slow or non-movers in sales) over a period of time. We also plotted the GMROII (gross margin return on inventory investment) to identify and compare importance of various categories to the retailer.

This information was combined with the buyer behaviour observed through (a) bill data – showcasing various product penetrations (b) real observation by standing on the retail floor over a period, and (c) age of left-over inventory in each category.

This analysis gave clear indications on the desired layout of the showroom, showing categories that needed to be pushed into the primary section of the showroom, categories or items that needed to be pruned, where variety had to be increased and hence required a bigger allocation of space.
These inputs were shared with the client and an exclusive space/corner was suggested for the custom home design project discussion.

Outcome

The client appointed an agency to execute the required layout and witnessed an increase in average bill value. Its home project services gained better conversions from before.