Reduced Retail Labor Cost by Nearly 14% Annually and Achieved 2.5% YOY Same-Store Sales Growth Through Traffic and Staffing Model Analyses

Sector: Luxury Retail

Revenue: $500M

Size: 200-Person Sales Organization

Scope: Global

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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

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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 
• Store segmentation
• Staffing model