Managing multiple channels

CASE STUDY

Managing multiple channels

How data analysis drove even greater success for National babywear retailer

For 13 years our client, an Australian babywear retailer, has been a success story in the babywear market. With organic cotton fibre, soft colours and classic designs, they have a clear differentiation. But now they also have multiple channels, selling wholesale, online, in department store concessions and their own branded retail.

A well-run business, they always collected thorough sales and financial data, but their monthly profit and loss figures revealed little more than costs, revenue and margin for each channel. Like most sophisticated retailers, they were aware of the different buying habits and selling methods in each channel, but without concrete data, decisions could be made only on past experiences or gut feel.

“It’s about increasing your ability to predict what’s likely to happen in the future and not making decisions in the dark.”

“Two years ago we put in place a management report that substantially improved the analysis and reporting of our client's real-time financial data,” says Pitcher Partners partner Adrian Clerici. “This enabled them to understand profit and other data across each store, location and channel, on a monthly basis. This included their online business, wholesale and retail, right down to individual customers and individual products.

“It means they've been able to monitor performance to a very sophisticated level, including what customers are purchasing in each channel, levels of discounts, size and value of purchases, and the drivers of profitability unrelated to turnover. Without the new reporting template, this would have taken a lot of time-consuming rework of their data, which is not really feasible on a monthly basis.”

The new reporting enables our client to monitor the profitability of customers and products, and the effectiveness of their pricing architecture. “It’s essential to monitor data on the products they’re always selling versus the fashion items and seasonal factors. Like when we can push stock to attract full margin. We want to avoid dropping our prices due to bad timing in the buying cycle.

“It’s not about cutting costs, although that tends to happen, too. It’s actually about making really well-informed decisions,” says Adrian. “It’s about increasing your ability to predict what’s likely to happen in the future and not making decisions in the dark.”