12 13-2011 - arezzo&co investor day - retail presentation
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| Apresentação do Roadshow
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Arezzo&CoArezzo&CoArezzo&CoArezzo&Co Investor DayInvestor DayInvestor DayInvestor DayRetail Retail Retail Retail ---- Owned Stores and FranchisesOwned Stores and FranchisesOwned Stores and FranchisesOwned Stores and Franchises
David PythonSchutz PMO
Carlos PontinArezzo Franchisees
Manager
By leveraging its strengths in products, Arezzo&Co has progressively the retail as its center of gravity
1 Concept to
store
2 Technology
applied
Retail
3PDCA
� Merchandising� Planning� Feedback
� Stores architecture project
� Visual merchandising� Sell-out analysis
� Breakdown of point of sales’ goals by sales person
� Structured managing process
Retail - Owned Stores and Franchises
2
By leveraging its strengths in products, Arezzo&Co has progressively the retail as its center of gravity
1 Concept to
store
Retail
3PDCA
� Merchandising� Planning� Feedback
� Stores architecture project
� Visual merchandising� Sell-out analysis
� Breakdown of point of sales’ goals by sales person
� Structured managing process
Retail - Owned Stores and Franchises
2 Technology
applied
3
4
1- Concept to store
Merchandising
MERCHANDISINGASPECTS
CRIATIVITY
PlanningSales performance
(sales turn, cluster, sell-in, sell-out, etc)
MarketingStimulating desire-driven
purchasesTecnical DrawingQualityMargis
Sourcing / ManufactureCosts and product execution
Design / StyleTendencies
Retail driven collection planning and product mix
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Shoes type Price range
Style level
Life Cycle
Occasions of use
Analysis and definition of product mix for each sto re
1 - Concept to store
R$XXX-XXX R$XXX-XXX R$XXX-XXX R$XXX-XXX
R$XXX-XXX R$XXX-XXX R$XXX-XXX R$XXX-XXX
R$XXX-XXX R$XXX-XXX R$XXX-XXX R$XXX-XXX
R$XXX-XXX R$XXX-XXX R$XXX-XXX R$XXX-XXX
By leveraging its strengths in products, Arezzo&Co has progressively the retail as its center of gravity
1 Concept to
store
2 Technology
applied
Retail
3PDCA
� Merchandising� Planning� Feedback
� Stores architecture project
� Visual merchandising� Sell-out analysis
� Breakdown of point of sales’ goals by sales person
� Structured managing process
Retail - Owned Stores and Franchises
6
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2 - Technology applied at retail
Schutz architectural project bets on flagships essence and highlights the products at a modern and cosmopolitan background
Closet� Jaquets and accessories� Brand horizontalization
Video Wall� Campaigns and marketing actions
Updated windows� Differentiated products
Niches and lighting• More preeminence to products
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� Project model allows visual communication updates at low-cost investment
� Visual merchandising brings the most relevant collection information to stores’ level
� 3 main display updates per year
Flagship
Arezzo Oscar
Freire SP
Summer
Winter
2 - Technology applied at retail
Arezzo architectural project bets on chameleon concep t, with its stores constantly modified to incorporate the concept of each new col lection
By leveraging its strengths in products, Arezzo&Co has progressively the retail as its center of gravity
1 Concept to
store
2 Technology
applied
Retail
3PDCA
� Merchandising� Planning� Feedback
� Stores architecture project
� Visual merchandising� Sell-out analysis
� Breakdown of point of sales’ goals by sales person
� Structured managing process
Retail - Owned Stores and Franchises
9
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Supply management� Monitoring each product
performance and store’s inventory level
Store productivity (revenues)� Ongoing valuation process
of stores results
Average ticket
Average price
Items per service
Average price
Volume
Traffic
Conversion rate
Sales Service
Retail management based on metrics and structured s ales process, together with supply management per category
DC for regional
replacement (SP)
+Variables analised
� Weekly Routine‒ Cluster analysis‒ Sales performance
analysis‒ Information sharing
among sales teams
� Monthly Routine‒ Team meetings‒ Best practices sharing‒ Metrics definition for the
following month
3 - PDCA applied at retail management
Averagemark-up
Inventory level
Product Flow
Sales
Average Ticket
Service
Traffic
Conversionrate
Average price
Items per service
� Analyze handbag display
� Increase accessories at POS
� Analyze store’s size-run
� Team incentives/motivational
compensation
� Cash management training
� Essentials/Classic training
Recommended actionsSales vs Metrics 1º Why 2º Why
Exemple on how to use management tools for sales ma nagement
X
X
X
3 - PDCA applied at retail management
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Operating Manager
Owned Stores Coordinator
SalesManager
� Point of sales metrics� Monthly meetings with sales team
� Weekly analysis of stores productivity (revenues)
We count on a dedicated structure aiming fast imple mentation of our action plan at owned stores
Responsabilities
� Weekly analysis of stores, by cluster
� Metrics breakdown by store� Elaboration of action plan at stores with weak performance,
together with sales manager
� Daily metrics for sales team
� Performance monitoring of the sales team
� Training and team management aiming achieve sales goals
3 - PDCA applied at retail management
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� Intense retail training
� 8 stores per consultant
� Team distribution among main sales clusters
� Consumer proximity
� Solid relationship and support to each franchisee
Successful partnership: “win-win” Constant support by consultants to franchisees
3 Consultants
7 Consultants
24 Consultants
8 Consultants
4 Consultants
Franchise BusinessManagement
South RegionCoordinator
Interior SP RegionalCoordinator
CMG and CORegional
Coordinator
NE RegionCoordinator
SP Metropolitan AreaRegion Coordinator
RJ and ES RegionCoordinator
N RegionCoordinator
Retail extension based on franchisees integration, which apply the best sales practices, supported by a commercial team composed by 46 consultants
3 - PDCA applied at retail management
Sales assistance also counts with other metrics/too ls to support the franchisees retail management
IAF - Instrument of Franchisees Management (planning, objectives and metrics)
Performance monitoring – sales score and flow reports
On line Promoter - Monitoring system for consultants follow-up
Show Room Web – Open and closed size-run (right product at the right time)
Shopping experience analysis: Hidden Client
Manuals of visual merchandising – simultaneously applied throughout Brazil
Arezzo Classic - automatic reposition of sold-out sizes
Trianon project - standardized shipment for hot and cold regions
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3 - PDCA applied at retail management
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0% lost on receivables
96% satisfaction of franchisees 1
Excellency in Franchising Award in the last 8 years (ABF)
Best Franchise in Brazil and in the sector for 7 years (since 2004)
Notes:1. 96% of the current franchisees indicated they would be interested in opening a
franchise if they did not already have one (Source: Arezzo&Co)
86.0%95.7%
2008/2009 2009/2010
Satisfaction of Franchisees
Current franchisees answer when asked if they would open a franchise it they did not have one
96% of the current franchisees indicated they would be interested in opening a franchise if they did not already have one
3 - PDCA applied at retail management
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