1. Year in Review
Louisiana
John Flowers, Will Kavanagh,
Samantha Wheeler, Daphne Lam

2. Agenda
 Overview
 Financials
 Recommendations
 Conclusion

3. Overview
 15 stores
 9 Metropolitan Statistical Areas
 3,177,291 consumers
 Louisiana Population
 4,533,372

4. Metropolitan Service Areas
 Alexandria
 Baton Rouge
 Houma-Bayou Cane-Thibodaux
 Lafayette
 Lake Charles
 Monroe
 New Orleans-Metairie-Kenner
 Nonmetropolitan Area
 Shreveport-Bossier City

5. Store Locations

6. Financial Overview
 Total Sales – $171,635,421
 Total Costs – $117,628,736
 Total Profit – $54,006,686

7. Recommendation #1
 Shut down store #9002 (New Orleans)
 Ranked 15 of 15
 Total Sales ($5,374,457)
 Total Profit ($1,629,664)
 MSA-adjusted Sales ($5.21)
 MSA-adjusted Profit ($1.58)
 Total Louisiana Sales (3.13%)
 Sales/cost ratio - 1.435 (10 of 15)
 Metairie store (#1 in sales in the state) located
approximately 5 miles away

8. Total Sales by Store
8702 SLIDELL 3604 ALEXANDRIA
4.95% 4.57% 8002 BATON ROUGE
3204 SHREVEPORT
6.43%
8.31%
9002 NEW ORLEANS
3.13%
9302 BATON ROUGE
11.37%
3504 MONROE
5.37%
3304 BOSSIER CITY
5.68%
8402 METAIRIE
15.77%
8602 GRETNA
7.33%
8802 HAMMOND
3.37%
9402 LAKE CHARLES
4.29% 8202 HOUMA
5.29%
8102 LAFAYETTE 8302 KENNER
8.27% 5.87%

9. MSA-Adjusted Profit
$20.00
$18.00
$16.00
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
LAKE CHARLES
BOSSIER CITY
NEW ORLEANS
BATON ROUGE
BATON ROUGE
ALEXANDRIA
SHREVEPORT
LAFAYETTE
METAIRIE
SLIDELL
MONROE
GRETNA
KENNER
HOUMA
3604 9302 8002 3304 8602 8202 8302 8102 9402 8402 3504 9002 3204 8702

10. 1000
1200
1400
0
200
400
600
800
METAIRIE
8402
BATON ROUGE
9302
LAFAYETTE
8102
SHREVEPORT
3204
GRETNA
8602
BATON ROUGE
8002
KENNER
8302
HOUMA
8202
BOSSIER CITY
3304
Average Baskets per Day
SLIDELL
8702
MONROE
3504
LAKE CHARLES
9402
ALEXANDRIA
3604
HAMMOND
8802
NEW ORLEANS
9002

11. Recommendation #2
 Rearrange store layout
 Average basket size: 1.79
items
 Average basket price:
$46.81
 Spread highest-selling
items out to maximize
each customer’s store
exposure
 Will increase likelihood of
customers purchasing
more items, boosting
both average basket size
and average basket
price

12. Recommendation #3
 Increase marketing
and promotional
efforts
 Increase in number of
items per basket
 Less than 10 percent of
customers take
advantage of sales in
14 of 15 stores

13. Recommendation #4
 Boost back-to-school
promotions
 August 2004 ranked 13
of 13 months in total
sales
 $9,977,410
 August 2005 ranked 11
of 13 months in total
sales
 $10,967,309
 Promoting will
significantly increase
sales

14. Sales by Month
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$5,000,000.00
$0.00

15. Summary
1. Close least profitable store (New Orleans)
2. Rearrange the store layout to help increase
average basket size
3. Increase marketing and promotional efforts
4. Boost back-to-school promotions to increase
sales in August