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CASE STUDY September 17, 2023

Accurate Tracking & Re-allocation Strategy for Home Appliance Sales from Closed Stores

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Business Objective

Our client is a worldwide market leader in home appliances, headquartered in the United States.

One of the major retailers of our client had closed 600+ stores since 2010 and was also seeing a decline in sales in 100+ of their stores. Our client had two objectives:
1) Impact analysis – what was their sales loss/gain due to the decline/closure of the retail stores?
2) Develop re-allocation strategy – how should the planned shipments to the retailer, in the event of a decline/closure, be reallocated to other retailers?

Challenges

  • Diverse market spectrum with 13 products across 7 categories. There also exist 30 unique brands in the portfolio
  • Some of the brands are also sold as retailer private labels. Since those products will not be available in the market when retail stores get closed, how do we retain the buyers of those private labels?
  • Sales data was available from only 60% of the retail stores under analysis.
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