Case Study

“Should The Store Be Closed

Permanently” Decision

HOW PALEXY HELPED TACKLE

THE CHALLENGE
The client is a luxury Vietnamese G A T HE R & ANAL Y Z E
brand that focuses on upmarket, DATA
01
high-quality clothes for women. The Categorize stores by
sophisticated and unique designs revenue level.
set the brand apart from its Within each category,
competitors. Its network of over analyze the Traffic,
100 stores nationwide sell a million CVR, Staff
products each year. Convertibility, and
Customer
Demographics S E L E C T AC T I ONA B L E
02 ME T R I C S
BUSINESS CHALLENGE Among low-sales
After being acquired by a foreign stores, identify
investor, the company went actionable metrics
through a major restructuring that could improve
process. sales if modified
SET TARGET 03
The new Board of Directors wanted Set traffic and sales
to bring about a breath of fresh air target for each low-
by renovating and upgrading the performing store.
retail space as well as maximize Plan incentives for
the ROI by getting rid of on-target stores. Plan
unprofitable stores. closings for off-
target stores R OL L OU T AC T I ON
As the result, the overall 04 & R OI
performance of each store was Monitor & manage
reviewed and some low-performing stores during roll out. 
stores were considered being Measure & discuss
closed permanently. results every week.
ACTIONS THE CLIENT TOOK
For each store, they used Palexy’s Analytics Tool to
measure various metrics using data of the three recent
months including: Store Traffic, Store Conversion Rate,
Staff Interaction Rate, and Staff Convertibility. They then
compared the results between the “low-sales” store group
and the “high-sales” store group.

For the “low-sales” store group, the client discovered that

although these stores had chronically low traffic, their
staff conversion rates were fairly high, some of which were
even 30%-40% higher than those of the “high-sales” stores.
The discovery indicated the store staff did a respectable
job converting walk-in shoppers into buyers, but the
marketing team failed to direct traffic into these stores.

The client then used Palexy to further analyzed shopper

profile and found that the majority of buyers at “low-sales”
stores were older than those at the “high-sales” stores,
and their preferences were also markedly different.

After gathering data, the brand adjusted their marketing

campaign to save the “low-sales” stores. They ran tasteful ROI RESULTS
ads targeting 40-50-year-old females; promoted products
Store Traffic increased by 40%
in the Dress, Tops, and Blouses categories with more
mature designs, re-did the window displays;  and sent
advertising SMS to older women living and working nearby. Store revenue increased by 15%

Constantly monitored the in-store traffic of targeted Saved more than half of “low-
segments during the one month roll out, and timely sales”
rewarded the Marketing and Visual Merchandising teams
whenever a store met its goal.

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