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Retail Gross Profit Recovery
4
Point of Sale (POS) Transaction Monitoring
Frequency of
Transactions
Size of Transactions
Internal POS
spreadsheets and
other less robust
tools
Greedy
HarvestingTrial
Thefts
Highest
Risk Area –
lots of
transactions
virtually
unmonitored
Sophisticated tools
such as SAP Fraud
Watch and
Datavantage
Enhanced tools
with robust KPIs
used by clients
Organizations need to move the point of discovery
back down the fraud cycle
Fraud activity at an organization is basically distributed on a normal curve
with a common zone of the most frequent transaction size
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/retail-gross-profit-recovery-88
7
Pricing Optimization Manages Pricing Through the Entire Lifecycle
Shelf Price
Promote
Shelf Price
Markdown
Shelf Price
Promote
Shelf Price
Markdown
INTRODUCTION
What’s the right introductory price?
Do I need to grow market share?
Should I couple that with other
incentives?
Are we opening new stores as well?
DECLINE
What’s causing the decline?
Should we fight it?
How do we flush the inventory?
MATURITY
Demand is flattening, what now?
Why am I promoting products?
Should I reduce price, or just advertise?
Is the product performing as I expected?
SUPERSESSION
Will new intros cannibalize the
category?
Should we rationalize a category?
Can we get more for less?
Is the product performing as I expected?
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/retail-gross-profit-recovery-88
10
Assortment can manage the consumer choice journey
The end to end customer centric assortment process utilizes attribute-based
insights to deliver strategic consumer targeted assortment and space
The result: Increased traffic, transactions and profit.
The benefit: Long term shareholder value.
The result: Increased traffic, transactions and profit.
The benefit: Long term shareholder value.
Who are my
customers?
What makes
them buy?
Where do
they live ?
Assortment
Offerings
What
assortment
meets their
needs?
Macro
Space
What is the
optimum
department/
category
space?
Brand
Flavor
Size
Count
Packtype
Container
Top
Consumer
Segments Clustering Behavior
Insights
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/retail-gross-profit-recovery-88
13
Our Point of View of Workforce Management
We understand the components of Workforce Management that will enable Cost Plus World Market to begin
the store operations optimized scheduling journey
Workforce
Optimization
Business Intelligence
KPIs, Dashboards
Task Management
Compliance
Workforce
Analysis
Best Practices
Standard Operating
Procedures
Workload
Development
Labor Standards, Labor
Drivers, AttributesLabor Budgeting
Bottom Up,
Top Down Analysis
Labor Scheduling &
Time and Attendance
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/retail-gross-profit-recovery-88
16
Workforce Management Components – Labor Scheduling
Leading Practices
Proper allocation of resources
Improvement in the allocation of hours based on
forecasts and standards
Proper assignment of shifts
• Based on needs of the business unit
• Skills and availability of the employee
• Consideration of work rules
Benefits
Reduction of overtime, over scheduling and sweet
heart scheduling
Improvement in customer service
Implement easy to use planning tools
Traffic Pattern
Actual
Scheduled
Workforce
Optimization
Business
Intelligence
KPIs, Dashboards
Task
Management
Compliance
Workforce
Analysis
Best Practices
Standard Operating
Procedures
Workload
Development
Labor Standards,
Labor Drivers,
Attributes
Labor Budgeting
Bottom Up,
Top Down Analysis
Labor
Scheduling &
Time and
Attendance
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/retail-gross-profit-recovery-88
1
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Retail Gross Profit Recovery

  • 2. 4 Point of Sale (POS) Transaction Monitoring Frequency of Transactions Size of Transactions Internal POS spreadsheets and other less robust tools Greedy HarvestingTrial Thefts Highest Risk Area – lots of transactions virtually unmonitored Sophisticated tools such as SAP Fraud Watch and Datavantage Enhanced tools with robust KPIs used by clients Organizations need to move the point of discovery back down the fraud cycle Fraud activity at an organization is basically distributed on a normal curve with a common zone of the most frequent transaction size This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/retail-gross-profit-recovery-88
  • 3. 7 Pricing Optimization Manages Pricing Through the Entire Lifecycle Shelf Price Promote Shelf Price Markdown Shelf Price Promote Shelf Price Markdown INTRODUCTION What’s the right introductory price? Do I need to grow market share? Should I couple that with other incentives? Are we opening new stores as well? DECLINE What’s causing the decline? Should we fight it? How do we flush the inventory? MATURITY Demand is flattening, what now? Why am I promoting products? Should I reduce price, or just advertise? Is the product performing as I expected? SUPERSESSION Will new intros cannibalize the category? Should we rationalize a category? Can we get more for less? Is the product performing as I expected? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/retail-gross-profit-recovery-88
  • 4. 10 Assortment can manage the consumer choice journey The end to end customer centric assortment process utilizes attribute-based insights to deliver strategic consumer targeted assortment and space The result: Increased traffic, transactions and profit. The benefit: Long term shareholder value. The result: Increased traffic, transactions and profit. The benefit: Long term shareholder value. Who are my customers? What makes them buy? Where do they live ? Assortment Offerings What assortment meets their needs? Macro Space What is the optimum department/ category space? Brand Flavor Size Count Packtype Container Top Consumer Segments Clustering Behavior Insights This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/retail-gross-profit-recovery-88
  • 5. 13 Our Point of View of Workforce Management We understand the components of Workforce Management that will enable Cost Plus World Market to begin the store operations optimized scheduling journey Workforce Optimization Business Intelligence KPIs, Dashboards Task Management Compliance Workforce Analysis Best Practices Standard Operating Procedures Workload Development Labor Standards, Labor Drivers, AttributesLabor Budgeting Bottom Up, Top Down Analysis Labor Scheduling & Time and Attendance This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/retail-gross-profit-recovery-88
  • 6. 16 Workforce Management Components – Labor Scheduling Leading Practices Proper allocation of resources Improvement in the allocation of hours based on forecasts and standards Proper assignment of shifts • Based on needs of the business unit • Skills and availability of the employee • Consideration of work rules Benefits Reduction of overtime, over scheduling and sweet heart scheduling Improvement in customer service Implement easy to use planning tools Traffic Pattern Actual Scheduled Workforce Optimization Business Intelligence KPIs, Dashboards Task Management Compliance Workforce Analysis Best Practices Standard Operating Procedures Workload Development Labor Standards, Labor Drivers, Attributes Labor Budgeting Bottom Up, Top Down Analysis Labor Scheduling & Time and Attendance This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/retail-gross-profit-recovery-88
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