Reduced Retail Labor Cost by Nearly 14% Annually and Achieved 2.5% YOY Same-Store Sales Growth Through Traffic and Staffing Model Analyses
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November 20, 2022
Sector: Luxury Retail
Revenue: $500M
Size: 200-Person Sales Organization
Scope: Global
Impact:
Reduced labor costs by nearly 14% annually representing $2M
Increased engagement and performance by remaining sales associates
Pilot stores had increased sales growth compared to LY and peer-stores during 3-month pilot period
Business Issue:
Luxury retailer was re-examining their retail footprint as they encountered changes in store traffic, growth of online sales, etc.
Need to drive increased store traffic through clienteling activities by sales associates and more effectively acquiring new clients in retail channels
Stores were not as profitable as the business would like and cost of labor was too high vs. other luxury retailers
New associates struggled to build a book of business while Assistant Store Managers were not contributing enough to drive sales
Need to develop the optimal staffing/resourcing, time study of activities/duties, deployment model for different stores, and plan for large scale change
Approach:
Store role design
Analysis of customer traffic, appointments, conversion rates, and other metrics across all stores
