Retail benchmarking

Retail Visitor Analytics Benchmarking Your Portfolio for Success The utilisation of footfall data for operational success In-Store Analytics Series

In-Store Analytics Series You know everything about every store in your portfolio: Now wouldn’t that be nice Each & every retailer is under intense amounts of pressure to deliver outstanding sales, whilst adapting almost daily to the changes the high street is imposing on it; adapt to survive seems to be the moto of the day. Understanding the potential of the retail store in all its guise's is the high interest topic of the day. New innovations on how to deliver content rich experiences, entertaining customer journeys and pointed personalisation are being thrown into the mix, everywhere we turn. However all too often the basic understanding of how the customers spend time within the store, and what influences them to buy is misunderstood, or simply not observed. With a little bit of data gathering, those missed opportunities can be turned into sales, putting, you the retailer in a position of strength

In-Store Analytics Series Store Performance Matrix The store performance matrix isn’t new, we didn’t invent it: but is does allow retailers to quickly analyse at least two critical components that effect a “like for like” store: The 1st being footfall & the 2nd being sales conversion Easy to use, effective in its simplicity: available within CountWise’s CW+ portal LOW FOOTFALL HIGH FOOTFALL _____________ _____________ HIGH SALES HIGH SALES CONVERSION CONVERSION Average sales conversion HIGH PERFORMACE HIGH PERFORMANCE 15% 20% 25% 30% 35% 40% MORE OPPERTUNITY STORE POOR OPPORTUNITY PERFORMANCE AVAILABLE INSTORE 500 1000 1500 2000 2500 LOW FOOTFALL Average daily footfall HIGH FOOTFALL _____________ _____________ LOW SALES LOW SALES CONVERSION CONVERSION

In-Store Analytics Series Locating opportunities to increase like 4 like store sales Improving like for like store sales is a priority for every retailer. In many cases this important metric is used by financial analysts to determine the strength & value of a company There are three points of reference that effect sales value: Footfall: are your marketing activities smart enough to drive people through the doors Sales Conversion: footfall to buyers ATV, Average Transaction Value: how big is the basket ACTION ACTION _____________ _____________ INCREASE MARKETING ACTIVITY IDENTIFY KEY PRACTICES & REPLICATE Average sales conversion HIGH PERFORMACE HIGH PERFORMANCE 15% 20% 25% 30% 35% 40% MORE OPPORTUNITY STORE POOR OPPORTUNITY PERFORMANCE AVAILABLE INSTORE 500 1000 1500 2000 2500 Average daily footfall ACTION ACTION _____________ _____________ INCREASE MARKETING ACTIVITY ADDITIONAL EFFORTS BY STAFF RE-EVALUATE STORE LOCATION REQUIRED

In-Store Analytics Series Pointer: - Using like for like store data for comparison will improve the value of the Matrix. For example, shopping centre stores in many cases have high browser footfall with a lower sales conversion, as opposed to destination stores that typically have lower footfall but higher sales conversion & larger basket values. Comparison of like for like stores will deliver a better gauge of a stores true performance Average sales conversion HIGH PERFORMACE HIGH PERFORMANCE 15% 20% 25% 30% 35% 40% MORE OPPORTUNITY STORE A Mall store POOR OPPORTUNITY AVAILABLE PERFORMANCE INSTORE A Outlet store 500 1000 1500 2000 2500 Average daily footfall Knowing where you sit in the matrix will help guide store management on where to focus their energies: Whether you’re in the lower left-hand quadrant which needs to focus on a more attentive service to achieve higher basket values or in the bottom right where the focus should be on sales conversion. Each quadrant has its own point to make, knowing where you are in it helps.

In-Store Analytics Series Best Practices Identified Historically knowing where opportunities lay is often difficult to identify, and often even more so to take advantage of them when they are identified However in many cases you not only know where the opportunity is but what efforts and resources you need to put in place to capitalise on them. By using the matrix to identify the opportunities become clear and you can concentrate on the areas that give best return on efforts. Sometimes its as simple as 1,2,3 ONE Average sales conversion 15% 20% 25% 30% 35% 40% Investigate the stores HIGH PERFORMANCE STORE that fall into the high performance category. These stores are stetting the KPI standard with strong sales conversion & high footfall. Its from these stores many best practices can be gleamed. However even 500 1000 1500 2000 2500 the best have room for improvement, so should Average daily footfall not be left to rest on their loreals; other areas of improvement may be by increasing basket size Two Average sales conversion 15% 20% 25% 30% 35% 40% Investigate the stores HIGH PERFORMACE that have similar footfall MORE OPPORTUNITY numbers but different sales conversion rates.. In many cases retailers may not have few if any POOR PERFORMANCE that fall into the high performance category as it is often more difficult to maintain high there is high footfall.500 1000 1500 2000 2500 conversion rate when Average daily footfall However you can still identify opportunities by looking at stores with similar footfall but differing sales conversion rates. There are sometimes identifiable reasons why there are differences; they may include differing labour resources or a more affluent area. Remember even a small increase can deliver double digit growth

In-Store Analytics Series Best Practices Identified THREE Set target sales conversion rates on the high-performing stores which fall within the type, Mall, High street etc. These stores are setting the KPI standard within their category. In our experience it is a case of encouraging and mentoring the underperforming stores up to the average as a first stage that produces the best results in the shortest time scale Once the new average has been established, the target becomes a new one, each times it is reached. TARGETED APPROACH Significant amount of time, energies & monies are spent on marketing, all in the goal of generating footfall to store. Whilst social media campaigns and promotional websites provide retailers with access to a more targeted audience; knowing which campaign gives best return on investment is often difficult to understand. By using footfall and the simple matrix, knowing which activity gives best return is clear to understand and therefore replicate. Add to that any additional data sets available such as POS, Staffing and ATV and the picture becomes even clearer. CW+ the CountWise store performance reporting portal allows quick and easy access to the meaningful data encouraging retailers to make changes before the impact of change effects profitability

CONTACT DETAILS: We’re here to help CountWise European Offices Beckerings Business Park The Beckerings Park Estate Lidlington, Bedfordshire MK43 0RD Telephone: +44 (0) 1525 280 105 Web: countwise.co.uk Mail: [email protected] Intelligent customer service is the key to success