Rebuilt value proposition via omnichannel and services
Case study:
Rebuilt value proposition via omnichannel and services
- Situation
- A major retail group’s country cluster was the profit engine, driven by operationally excellent execution of the existing model
- Shifting customer needs and digital-first entrants started to erode the model’s relevance
- Given the country’s key role in group earnings, leadership had to upgrade the model without heavy incremental investment or a temporary EBIT dip
- Actions
- Defined the value proposition shift from assortment breadth to curated choice, category specialist advice at competitive prices and product plus service solutions
- Built a product life cycle services portfolio, including advisory, delivery and installation, training, repair, subscriptions and trade-in
- Shifted to customer-led category management, improved pricing and cut SKUs to lift availability and release working capital
- Designed differentiated store formats with adjusted footprints, leaner assortments and more on-site value added services
- Rebuilt the omnichannel and delivery model to connect stores and digital, then differentiated logistics options to fund convenience only where it paid back
- Reallocated budgets and executed targeted cost takeout to self-fund the changes
- Results
- New value proposition went live with an integrated omnichannel experience across a transformed store footprint and strengthened digital touchpoints
- Services extended customer interaction across the full product life cycle, strengthening differentiation and generating margin beyond the initial product sale
- Initiatives were executed under a funded transition plan with KPI tracking, avoiding a temporary EBIT dip