How about a little Retail Therapy?
The Retail Solutions we offer are helping customers to:
- Find 1 – 2% points at the direct contribution margin level
- Create true driver-based models
- Combine financial and non-financial metrics for a deeper insight into your business
- Translate non-financial and operational metrics into financial ramifications
- Maximize Profitability by addressing Key Performance Management objectives
(Business Performance Management)
This is the corporate budgeting model incorporating both Sales and General Ledger based planning. Planning can be performed at Top Line or Bottom Up, as Driver Based/Ratios or pure input, and can handle stretch targets that automatically roll up into the Corporate Budget. Our BPM models lead to fully consolidated Income Statements, Balance Sheets and Statement of Cash-Flows.
(Retail Performance Management)
This model incorporates traffic counter data by hour, point of sales data by hour, time and attendance by hour (Timeteq data), and store opening hours to give you traffic flows, engagement and conversion ratios, average sales, number of “multi’s”, staff productivity; also helping to identify training gaps and any disconnects between marketing and the shop floor.
(Pricing Performance Management)
PPM utilises an SKU or Product level pricing analysis and volume trade off model. The objective is to model pricing across market segments starting at the RRP (Recommended Retail Price) and working all the way down to the Direct Contribution Margin level. The model simply calculates the effect of pricing decisions at a break even volume. That is, if certain rebates, allowances or discounts are given, what volume needs to be achieved to at least break even, otherwise why give those discounts away. Brand managers are able to model the effects of pricing decisions and determine whether the proposed pricing will meet corporate objectives.
(Inventory Performance Management)
The IPM model incorporates Stock Movements with Opening Balances, Purchases (Actuals and On-Order), Sales, Cost of Sales, and Inventory Holdings by month, to generate an effective Dead Stock Analysis, and true Gross Margin Return on Inventory Investment (GMROI). This model calculates closing stock at month end which few accounting systems can do, and incorporates both Actuals and Planning scenarios to help optimise Inventory Holdings and Turns across all SKU’s ensuring that you have the right balance of stock at the right locations.
OTB (Open to Buy)
The OTB model utilises the IPM analysis above to project out future requirements by either units or dollars.
CPM (Customer Profitability Management)
The CPM model looks at customer profitability by geography, by sales person, by market segment and any other hierarchy you desire, to determine which customers are profitable with insight into unit margin by customer and customer whale curves.
Mark Down Optimisation
The Markdown optimization model allows you to maximize margins over the product’s entire life cycle and monitor performance of mark down activities against financial and operational targets, particularly critical for fashion and seasonal products.
Conduct sales analysis by sales person. product, category, region, or any other criteria, as well as Like-for-Like, YTD and BOY (Balance of Year) reporting incorporating Actuals and Budgets/Forecasts.