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Final Project Presentation.pptx
- 1. New Brick and Mortar Clothing Store Proposal within the Retail Environment DIANA LEWIS WILMINGTON UNIVERSITY MCM 6100: MULTIMEDIA COMMUNICATION DR. JOHN HOEHN
- 2. PURPOSE Justification of opening of a new retail store U.S. Census Pre-pandemic & post-pandemic trends of retail environment Increasing profitability
- 3. APPROACH PESTLE ANALYSIS SWOT ANALYSIS STAKEHOLDER MAP BIG DATA TO CREATE VISUALIZATIONS
- 8. LAUNCH PLAN AND TIMELINE Launching the new brick and mortar store will be based on the project objectives and retail goals Big Data will help monitor the new clothing store’s sales on a quarterly basis Big Data = costly but is a necessity for the project Digital marketing campaign Timeline: 1-2 years
- 9. MONITORING APPROACH 7 KPIs that are important to take note of in the retail industry Sales per square foot Gross Margins return on investment Average transaction value Customer retention Conversion Rate Foot traffic and digital traffic Inventory turnover (Tableau, n.d.)
- 10. RESULTS With the help of Big Data on profitability trends within the retail industry, and through use of predictive analytics, it is anticipated that the project will follow through to open a new retail store to the retail industry segment. The new location will help restore economic health within the United States
- 11. ASSESSMENT OF SUCCESS AND RECOMMENDATIONS Success would be determined by how successful the new brick and mortar women’s clothing store is after a certain amount of time Assessment of success using the 7 KPIs Recommendations: Revisit overall business plan Gather additional data to track profitability of the new location
- 12. References Chartered Institute of Personnel and Development. (2023, March 8). PESTLE analysis. https://www.cipd.org/en/knowledge/factsheets/pestle-analysis-factsheet/#what-is-a- pestle-analysis. Chartered Institute of Personnel and Development. (2023, July 19). SWOT analysis. https://www.cipd.org/en/knowledge/factsheets/swot-analysis-factsheet/. de Bruin, L. (2016, September 18). Scanning the Environment: PESTEL. Business-to- you.com. https://business-to-you.com/scanning-the-environment-pestel-analysis/. Retail and Trade Survey Report. (n.d.). Estimates of Monthly Retail and Food Services Sales by Kind of Business. U.S. Census Bureau. https://www.census.gov/retail/index.html. Tableau.com. (n.d.). 8 Important Metrics for Retail Industry KPIs. https://www.tableau.com/learn/articles/retail-industry-metrics-kpis
Editor's Notes
- The purpose of this project is to justify the opening of a new clothing retail store within the retail industry. Data from the U.S. Census on women’s clothing profitability within the last 4 years (2019-2022) will help aid in the decision. This data will show trends within the pre-pandemic and post-pandemic retail environment. It is important to take note of whether there is a consistent trend of increase in profitability as this would indicate that a new brick-and-mortar location would most likely also have increasing profitability from year to year. The proposal of the new store would further help aid the economic distraught that the United States faced when the pandemic hit.
- One strategic framework that will be used for this project will be a PESTLE analysis. A PESTLE analysis is the political, economic, social, technology, legal, and environmental external factors of a business (Chartered Institute of Personnel and Development, 2023). “A PESTLE analysis will help you to understand factors external to your organization which can impact upon strategy and influence business decisions” (Chartered Institute of Personnel and Development, 2023). Using a PESTEL analysis will help determine whether any external factors affected the retail industry before and after the COVID-19 pandemic.
- Another strategic framework that will be used in the project will be a SWOT analysis. “A SWOT analysis is a planning tool which seeks to identify the Strengths, Weaknesses, Opportunities, and Threats involved in a project or organization” (Chartered Institute of Personnel and Development, 2023). Appendix B shows the SWOT analysis for opening a new clothing brick-and-mortar location within the retail industry post the COVID-19 pandemic. The COVID-19 pandemic caused many brick-and-mortar stores to have to adapt to the times and create a retail environment that was online. As seen in the SWOT analysis, it is important that an online presence be established for the new retail brick-and-mortar store in order to help keep brand awareness. “Retail – both online and brick-and-mortar – forms the foundation for local economies, our workforce and community main streets across America” (Geraghty, 2021). Brick-and-mortar stores, as long as they remain profitable, are here to stay.
- A stakeholder map was developed to show those affected by the decision of the proposal to open a new brick-and-mortar store within the retail industry. Appendix C shows this stakeholder map and who might be impacted by the project. The financial department will be in charge of the project budget which will include costs of running all Big Data analysis. This stakeholder map will assist in prepping the project to carry out the objectives in order to ensure its ultimate success. As you can see from this stakeholder’s map, there are many people and departments who are affected by the decision to open new clothing brick and mortar store within the retail environment
- The Big Data that will help make the ultimate decision about the project is the profitability of women’s clothing stores within a four-year period (2019-2022). This four-year period is extremely important to the success of the project because this time period was data from before the pandemic, during the pandemic, and after the pandemic. There is not full data for the 2023 year on profitability because the year is still occurring. Using the data from the Monthly Retail and Trade Survey Report data was gathered to create a bar graph of the sales (in millions). As you can see in the graph, there was a drastic decrease in sales in 2020 which is when the pandemic was at its worst. You can also see that in 2021, it seems as if women’s retail sales were back to normal if not even better than they were pre-pandemic.
- The project team will need to build the launch plan and timeline for introducing the new store into the retail industry using the project objectives and retail goals. The use of Big Data to monitor women’s clothing store sales on a quarterly basis will be available and monitored to make sure that the project is going according to the plan. Big data will be costly and must be added to the budget to help with promotion of the new store. A digital marketing campaign will be added to the plan to ensure that there is an online presence of the new store. The timeline for this project is 1-2 years. Data will be continuously analyzed and used in order to make all strategic decisions about the new brick-and-mortar store.
- Monitoring the success of the project is extremely important to gauge whether the opening of a new brick-and-mortar clothing store is profitable post the COVID-19 pandemic. Key performance indicators (KPIs) are important to pay attention to. When discussing the retail industry, there are 7 KPIs to pay attention to in monitoring the success of the store. These KPIs are “sales per square foot, gross margins return on investment, average transaction value, customer retention, conversion rate, foot traffic and digital traffic, and inventory turnover” (Tableau, n.d.). Sales per square foot is the first KPI that will indicate whether the new store was a smart strategic business decision. This KPI indicates whether a store is productive in the space they have available. In other words, the product and product placement within the store should increase profitability for the store and overall company. The second KPI that will indicate if the new store is a smart business decision would be gross margin return on investment (GMROI). “GMROI measures the profit you make from the amount you invest in product stock. What this means in practice is that for every dollar you spend in your inventory, this KPI can tell you how many dollars you get back” (Tableau, n.d.). GMROI focuses on particular product categories. The third KPI that would indicate whether a new store within the retail industry would be a good decision would be average transaction value. This KPI is “helpful to know what people are buying and how much they’re spending each time they come in” (Tableau, n.d.). Knowing what your customer is buying and how much they are spending is important to the growth of a retail store. The fourth KPI to monitor the success of the project is the customer retention rate. This KPI will help measure growth of the new store. Being able to turn a one-time customer into a regular return buyer is extremely important to measuring the success of the new retail location. Not only does customer retention increase profits but it builds loyalty and can lead to further customer acquisition through word of mouth. The fifth KPI that is important to measure the success of the project is conversion rate. “This generalized KPI offers insight into what turns browsers into customers. While reach and marketing campaigns can get your name out there and people to your store, the only way to grow is to ensure your visitors convert into paying customers” (Tableau, n.d.). Customers are not very valuable to a retail store if they are not helping the store remain profitable through purchases. The sixth KPI that is important in measuring whether the introduction of a new store is a smart strategic decision is foot traffic and digital turnover. “Measuring foot traffic and website visits are useful indicators of how well users know your brand, how successful marketing campaigns are, and whether your digital and physical storefronts are performing well” The seventh KPI that is important to measure the success of the project is the inventory turnover ratio. “Tracking inventory turnover will help you figure out how fast inventory moves and how long a store is sitting on stock” (Tableau, n.d.). Having inventory of products too long is not profitable for a store while at the same time, going through inventory too quickly is a possible indication that a store “may not be capitalizing on market demand as efficiently as possible” (Tableau, n.d). Sell-through of merchandise is a clear indicator of whether the project will be successful or not.
- With the help of Big Data on profitability trends within the retail industry, and through use of predictive analytics, it is anticipated that the project will follow through to open a new retail store to the retail industry segment. The addition of a brick-and-mortar location would help to restore the economic health of the United States. Although the economy will never be the same as it was pre-covid, the new store will aid on the path to economic recovery and growth. Through the development of an online presence for the new brick-and-mortar store, customers have multiple options of how to shop while also being exposed to digital marketing of the new clothing location.
- Success of the project to add a new brick-and-mortar store location would be related to sales and profitability that the store is showing after a designated amount of time. Using the 7 KPIs for the retail industry will help gauge if the overall project is successful. Big Data should be used to regularly monitor current profitability of retail stores within the industry (post-pandemic) to acknowledge any new trends formed in comparison to pre-pandemic conditions. There are a few recommendations that I would suggest should the new store not appear consistently profitable. One recommendation I would suggest would be to revisit the overall business plan for the new store. This would include making sure that the business strategy aligns with the demands and needs of the customers and retail market environment. Another recommendation that I would suggest would be to gather more data if the current data sets used are not sufficient to see noticeable profitability increases.