With more than 2,000 stores in 60 countries, one of the world’s largest sports retailers has relied on us to help address the stagnating or declining margins experienced by many retailers following the pandemic.
Challenges:
With market conditions tightening and consumer confidence dropping, the retailer was finding it difficult to maintain the right balance between attractive pricing and rising costs. This led to falling volume and overstock issues, while a reliance on promotional activity risked damaging their brand perception.
When approaching this challenge, we asked:
Outcomes:
Through improved analysis and insights, we addressed our client portfolio dynamics by employing Market Research, Pricing Strategy, Price/Promotion optimisation and Markdown optimisation ensuring sustainable profitable growth.
Further enhancements and better monitoring capabilities gave their teams the ability to make faster, more accurate pricing decisions and respond quickly to defend market share– all supporting strong brand perception and a competitive market position.
margin uplift over 3 years.
Additional EUR 1.1M of annualised margin impact over a single season from promotion optimisation
300 million transactions and 100,000 SKUs analysed
Price increases caused no decline in volume, while price decreases stimulated expected volume gains
