Driving Double Digit Growth for a Home Furnishing Retailer
Client Situation
Our client was a home furnishing and accents retailer with over 400 mall-based stores in the US and Canada. Despite 30 years of success, a market crowded with new competitors was making our client’s stores increasingly irrelevant to consumers. The retailer’s merchandise, messaging and store experience had fallen out of alignment with consumer demand and no longer addressed critical need states that motivate purchases.
Demand Strategy Approach
The Cambridge Group identified the retailer's most valuable customers – the small number of consumers who spend the most on home décor. We developed new insights into key need states and pinpointed what was most valuable and motivating to the target segment. We also rebuilt marketing programs, merchandise assortments, store environments and customer experience based on the demands of these targets.
Results
One year after completing the demand strategy:
- Increased same store sales 24% year over year
- Realized double digit revenue increases every quarter throughout the year
- Increased total revenue, including catalog and online, by 13%
- Increased net income by 95% over the year