Number One Shoes Outlet Stores

Themes

  • Cost/Profit enhancement
  • Effectiveness
  • Revenue
  • Productivity/efficiency
  • Strategic input
  • Technical expertise/analytics

Background

Number 1 Shoes is a large format nation wide retailer specializing in the footwear market. They are a “Category Killer” and their range encompasses the full spectrum from women's high fashion all the way to day-to-day practical footwear such as jandals, women's, men's, children, formal, casual, sport, school and beach.

Number 1 shoes has 47 stores nation wide and an additional 3 outlet stores which carry end of lines and clearance stock. These 3 stores are based in Onehunga, Glen Innes in Auckland and Bush Inn in Christchurch.

Situation

Reachmedia had been distributing the national number 1 shoes mailer for 12 months based on Transactional Data supplied by Datamine.

However there had been no support for the 3 Outlet Clearance stores in over a year. Number 1 Shoes felt that there wasn’t a wide enough awareness of these stores and where they’re positioned.


Task

Number 1 Shoes wanted to run a promotional offer to drive traffic to the 3 Outlet stores. However there had been no budget allocated for this promotion. Reachmedia was asked to come up with a targeted distribution plan with a set limited budget that drew people into the stores yet did not cannibalize the sales of the standard full price stores over this promotion period.  The key markets that Number 1 Shoes identified for the outlet stores were low socio economic and budget conscience shoppers. Number 1 Shoes ensured the mailer being distributed had an attractive offer and relied on Reachmedia for recommendation of selections of areas to achieve the desired results.


Action

Reachmedia recommended targeting breakdowns based on the following criteria:

  • 10 or 20 Km radius around the stores
  • Excluding High Socio areas based on Reachmedia’s socio demographic targeting tool
  • Excluding a 1Km radius around the full price stores so that avoid cannibalization
  • Excluding the top 10% of areas selected for distribution under the national transactional Datamine plan. These are high spenders in the Shoe Category which Number 1 shoes would prefer that they shop at the full price stores.
  • Reachmedia also recommended the mailer be distributed over their weekend distribution block and not the standard Midweek distribution block that most national retailers distribute in. This was to increase cut through of the mailer that was only a single page A5 piece.


Result

Sales Results for Number 1 Shoes:

  • All 3 outlet stores achieved sales above the anticipated forecast.
  • The first week of the promotion saw at least a 150% uplift in sales compared to the same time last year across all 3 stores
  • Strong sales were reported across the stores in the following 4 weeks after the promotion period proving an awareness factor was achieved in the distribution
  • Sales of neighboring full price stores were not affected with only 1 reported incident of a customer bring the mailer into a full price store.

Results for Reachmedia

  • Improved the relationship and level of trust in our recommendations
  • Reinforced the benefits of using targeting tools to achieve different aims and to add value to clients.
  • Confirmation of future outlet store distributions with ongoing quarterly drops
  • Further secured letterbox distribution as key to Number 1 Shoes marketing strategy.