FFA 1: Securing the Top 20 Stores

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SECURING THE TOP 20 STORES

The FFA approach evolved after several rounds of meetings and analyses aimed at increasing overall profitability. The immediate imperative of FFA 1 was to secure the top 20 stores that delivered one-half of the top line and two-thirds of the bottom-line. These stores were the torchbearers of the brand with consumers as well as with brand partners and developers.

CASE FOR CHANGE

1.1 Static look and feel in-store

The look and feel of Lifestye stores across the country – including store windows and in-store display clusters – even in the top 20 stores were being changed only about 3 times a year. So a typical loyal customer stepping in roughly 6 times a year, was likely to see the same displays over several visits. This pushed up the fatigue factor and discouraged repeat-visits. The problem was compounded with competing online fashion entities refreshing their virtual displays frequently. The other issue around freshness was that the brand’s uniformity code did not leave room for regional

102%

was the target achieved in EW during the 2019 festive perod with 13% LFL growth

nuances and festivals to be captured in the displays which was a sellng-point for several brands.

The fatigue factor extended to shelves as well as with goods being stocked across 3-4 months. This often cost the store heavily as the customer would wait for EOSS to get at the goods on display for the previous 2-4 months at a discounted price.

1.2 Availability issue with merchandize

Often even the products promoted were not available in several stores across the country. The NPS data generated indicated that availability of stocks was a big issue across designs; as also in the varieties in categories. Sizes were another stumbling block.

This pain-point was particularly felt in the Top 20 since the footfalls here were higher. Ready availability would automatically push up sales. This was a high-criticality area.

1.2 The missing ‘something more’

To enable the Top 20 to maintain their position and cut the clutter among

competition, there needed to be that extra something on offer. While the stores were contributing the mega chunk of business, there was scope to enhance business by engaging more with the bigger footfall.

PLAN AND IMPLEMENTATION

store experience upgrade: Display windows, which were the face of the store, were enhanced and changed every week. Instead of showcasing only global trends, regional trends were included and popularised. Festive clothing for Pujo in the east, Onam in the south or Navratri in the west were introduced. The festive and regional push was amplified by bringing in bloggers to talk about the time-bound collections on their platforms. Local celebrities too were invited for in-store promotions.

Inside the stores, ‘heightened trend zones’ were created – these were mannequin clusters in high-impact areas that created interesting islands for the customers to see larger-than-life representations of the latest collections and fashion interpretations.

technology upgrade: Technology was upgraded to incorporate LED screens with content playing round-the-clock and in-section displays of stores were refreshed. Online & offline connect: The top 20 stores were the first to establish a seamless connection between the online and offline experiences for the consumer. Design elements and merchandize display patterns online were reflected on-ground to create a holistic brand appeal.

FFA 1 and Womenswear

The extensive in-store exercise to reduce non-profitable areas netted tangible results. Here are some notable points: a) Womenswear in private labels and external brands, saw significant leaps. This was largely attributed to the expansion of Fab Alley, J 21 and Cover Story; rationalising of the area allocated for Ginger and the Denim zone; and increased focus on the Dress category. b) During the 45-day festive period, the APL team ensured least cut sizes of fast movers, and helped deliver Rs 100 Cr in October 2019 – this translated to 102% budget achievement with 13% LFL growth. c) The ‘monthly drops’ of fast fashion under Ginger Runway helped establish a connect with younger customers with the right trend and freshness. d) EW brands business improved from 2.5% PBT to 6.8% within 7 months with the introduction of the right product mixes and brands.

stock-turnover enhanced: The allimportant issue of stock-turnover was addressed on a war-footing. No merchandize more than 60-days was allowed to sit on shelves. The back-end was built up to ensure there were no bottlenecks to new stock availability. Merchandize availability: It was ensured that both private label and external brand items reached the top 20 stores within 24 hours of arrival at distribution centres. An enormous level of planning and systems optimisation, including incorporating the latest software, was initiated at all levels to remove bottlenecks and ensure that merchandize availability was maintained in the Top 20. (Read more about these tools in later chapters.) This aim was further met by the consolidation of top-seller brands, which were allocated more space. Low-selling brands were discontinued. This enabled the conversion of more customers in quality areas, directly affecting PBT.

Novelty fashion freshness: ‘Flash representations’ that included limited editions and runway collections were introduced to bring in exclusive design lines at the Top 20. The ‘Star Wars’ collection was one such trial effort that performed well. External brands too were encouraged to introduce limited editions to increase overall profitability – as Levi’s did with the ‘Stranger Things’ exclusive collection. This approach also enhanced freshness.

Campaign events such as ‘Dress for an Occasion’ were hosted in February 2019; March of the same year saw an event called ‘Colours’ where the entire store was coordinated to a colour theme. These processes resonated well with customers.