February 12, 2018

A Merchandising Challenge Is Identified

The comp segment report quickly identifies challenges ... and the report identified two challenges at Gliebers Dresses.

Look at the most recent results from October - January ... all negative, following months of positive results. This generally happens when either the economy tanks (the economy was good) or when there is a merchandising problem.

Look at results from last year vs. two years ago ... almost entirely negative. This strongly suggests a merchandising problem.

Meredith Thompson (Chief Merchandising Officer) is not going to like the results. When you share them with her, she's going to find every reason possible to suggest that this is a marketing problem.

We already identified the marketing problem ... it's new customers.

Everybody plays a role when change is required. We know that new customers are becoming increasingly harder to acquire ... and we now know there is a merchandising problem.

P.S.: Recall that the comp segment framework measures customers with exactly two purchases in the past year, quantifying how much these customers spent in the next month ... re-running the query for thirty-six months using the same rules. This is the best framework I've identified to measure merchandising challenges.

Business Principle #13