How to reposition an existing department store chain and restore profitability?
- Innova retail & brands
- Client: Leading chain of department stores in Europe
about the project
Key facts and figures when starting
- Chain of 60 department stores with a strong brand recognition
- Sales > 2,5 bn€ stagnating, and loss situation
- Family-owned group in a context of LBO
Chain of 60 department stores with a strong brand recognition
Sales > 2,5 bn€ stagnating, and loss situation
Family-owned group in a context of LBO
OUR WORK
Key levers activated during the project
How to redesign the business concept and restore profitability?
- Elaborating a clear vision, a 3 to 5-year strategic plan, with core actions and resource allocation, deeply shared within the company
- Repositioning the core offer of brands and products towards Fashion, from affordable to luxury segments
- Investing continuously in store refurbishing and commercial projects (>100 m€ per year), with high ROI expectations
- Improving gross margin by 2 pt, by activating appropriate levers (category mix, business model types, negotiations, sales operations and discount policy,…)
- Introducing new loyalty program and customer experience within the store network
- Setting up a strong team of leaders working hands in hands at each managerial level to achieve the goal
- Implementing a robust IT system in order to make the changes possible
- Changing the culture, more customer oriented and results driven, via projects, KPI’s and new incentive schemes
Key innovation triggers
The new brand strategy, based on a repositioning looking into the DNA and values, and providing guidelines for innovative actions
The new transformation and performance culture, with strong leadership from the CEO and empowerment of the top 30 managers