SPO is a store performance optimization program designed to increase a store's average transaction size and profit per transaction. It applies consumer goods best practices to specialty retail by analyzing customer decision trees, store-specific category performance, and developing action items tailored to each store. SPO identifies over-and under-assorted categories and optimizes fixture usage. It is expected to increase average transactions by 3-5%, margins by 3-5%, and net profits by 15%+ while raising conversion rates by 2-4%, delivering immediate ROI through sales enhancements requiring no additional expenditures.
2. Make existing stores more productive
SPO is designed to
increase a store’s Average
Transaction Size, and Profit
per Average Transaction
3. Application of Consumer Goods best practices
to Specialty Retailing
• CDT – Consumer Decision Tree
o Real customers’ needs analysis
o Historical data translated to actual shopping trip
• SSCA – Store Specific Category Analysis
o Cross analysis using multi level processing of KPI’s per location
o Category management adjustment and analysis to a
specialty store level
• AIM – Action Item Model
o A set of store-specific, concrete action items that are
targeted to increase the ATS and the Profit Per Transaction
o Addressing Space/Shelf, Merchandising, Assortment,
Promotion
4. A store-level analysis service
• Adapting chain level tactics to store specific
constraints and micro events
• Identification of merchandise categories that
are over-assorted and those that are under-
assorted
• Optimizing the use of resources like fixtures
5. Expected SPO Benefits
• Estimated Average transaction up by 3-5%
• Estimated margins up 3-5%
• Net Profits up by 15%+
• Conversion rate up 2-4%
• Immediate ROI
• Sales enhancement with
no additional expenditures
• Profit Oriented
• Store specific yet scalable
• From industry veterans