Aisle Redesign: A Retail Case Study
The CompanyA major North American grocer with over 500 stores
The ChallengeThe grocer learned from preliminary analysis that a new aisle feature increased beverage sales, but not enough to approve a rollout. The grocer had tested four variations of the feature–Gold, Silver, Bronze, and Simplified Bronze— and wanted to know which one drove the highest sales increase. Management also needed to identify the demographic segments most likely to respond positively to the aisle investment.
The SolutionThe grocer chose APT’s Space Planning Optimizer solution to compare the performance of stores that received the new feature with the performance of well-matched control stores that had not received it. The data revealed that all four variants initially disrupted sales, but then led to a steady-state sales increase. The Gold option drove the highest sales, followed closely by the Silver option. The Silver option, however, was less expensive than the Gold option, and thus had higher ROI. APT software then segmented the overall results to identify the store characteristics most strongly related to program profitability.
The ResultsThe results presented an opportunity to move forward with the Aisle Redesign while also improving execution. As a result of APT analysis, the “Silver” design was targeted for primary rollout, additional signage was recommended to reduce initial consumer confusion, and stores in younger trade areas were prioritized for early rollout. The optimized rollout generated millions of dollars in incremental profit.
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