Working with Australian Fashion icon RM Williams
Once the survey data is compiled, we run a correlation analysis to determine those factors (characteristics) that have the biggest impacts on sales variability. Factors like income, ethnicity, age, store size, positioning, signage & visibility are all likely to have an impact on sales performance. The most important question is….how much of an impact?
Once we were able to determine the key sales drivers for the brand, it gave RM Williams a clear understanding of what to focus on. The process then leads to building sales & cannibalisation models for the different store formats. The importance of sales forecasting models was evident for two reasons 1) it is then run over the current network of stores to determine which stores we deemed to be over performing, meeting expectation or under performing and 2) provides a sales forecast for any new site introduced into the network.
The final piece of the puzzle was to produce a strategic network plan incorporating new growth targets being careful to take into consideration any possible cannibalisation impacts on the existing store network. A good rule of thumb is that the more destinational a brand is, the greater the risk of cannibalisation if located too close to an existing store. Trapping customer data allows for an analysis of how far customers travel to visit a store.
One of the hallmarks of working with the RM Williams team is the considered, methodical approach taken to investing in new sites. The models & tools we were able to provide the business, allowed the property team to focus on the things that really mattered and not be tempted by sites that didn’t fit the profile.
Our view is that it is better to learn from what’s gone before then to repeat the mistakes of the past. RM Williams is a classic story of a brand with such rich history that is as relevant today as it was 50 + years ago evolving with time to become the must have fashion brand for a new wave of customers.