February 13, 2017

Another Example of Measuring Why A Retail Store Is Struggling

Here's another store trade area (zip codes ranked most sales to least sales, take zips that account for 70% of total sales).


Tell me what you observe?

First of all, the fox/rabbit issue is at play here, to some extent. Online is growing as a share to total spend. Customers are migrating from retail to the online channel. The foxes are eating the rabbits.

Second, there's a Unique Point of View issue at play. Look at new + reactivated customers by year ... 26,000 to 26,000 to 23,000. More than 10% of the new + reactivated customers dried up ... and the ones that are being acquired are starting to skew more and more to the online channel.

This store cratered by about 10% over a two year period of time. It cratered because the foxes (online) are eating the rabbits (retail). It cratered because the brand does not have a Unique Point of View.

Do you perform these analyses, so that you know why your business is succeeding or failing? Run the query!!