Turnaround and e-commerce strategy for established retail brand
Case study:
Turnaround and e-commerce strategy for established retail brand
- Situation
- Established retail brand with an ageing customer base suffered sharp declines in sales and EBIT as consumers shifted to e-commerce
- New shareholder, an international retail group, aimed to turn the business into an e-commerce pure-play by targeting younger customer segments and funding the transformation journey through rigorous restructuring
- Actions
- Analyzed market, consumer trends and competitive landscape and identified key drivers of the decline
- Assessed e-commerce growth potential and attractiveness of younger target segments
- Developed an e-commerce-only strategy with clear value proposition, product mix, pricing approach and points of differentiation
- Refreshed brand positioning and visual identity and optimized media mix and campaign strategy to drive online traffic and conversion
- Curated assortment for the new target audience with stronger focus on higher-margin items
- Implemented competitive pricing and a promotional calendar tailored to peak demand
- Enhanced website and customer experience with improved content, personalization, value-added services and seamless customer journeys
- Assessed synergies with the new shareholder in assortment, marketing, supply chain and IT systems and captured quick wins
- Redefined the organizational model for a digital-first approach and developed a restructuring plan to streamline operations and significantly reduce costs
- Analyzed the discontinuation of non-digital sales channels and designed a staged transition from multi-channel to e-commerce only
- Led the overall transformation office and drove execution of the e-commerce strategy including preparation of negotiations and transition with social partners
- Results
- E-commerce pure-play strategy defined and implemented
- Online sales and market share among younger customer segments increased and brand awareness and loyalty in target audiences improved
- Assortment redefined with stronger focus on high-margin items and synergies with the new shareholder realized
- Cost base streamlined and reduced by approximately 35 percent enabling the transition from multi-channel to e-commerce-only presence