Conversion Nightmare

Conversion Nightmare

Test your retail management analytical and problem solving skills.

Here’s the case store situation:

In a busy regional mall, which has been operating for approximately 30 years, and which has undergone several renovations, there is one very unusually positioned store.

The store sells women’s lingerie. It is part of a well known, multi-national chain which does very well.

The store volume is pretty good and they are above average in meeting targets for sales and most other KPI’s.

The one KPI they do not ever meet is conversion.

They are always below chain, region and district average in their percentage of achievement in this particular KPI.

Although they do many things well, they just cannot meet their Conversion targets.

The Store Manager and staff believe they know what the problem is.

The store is situated at one tip of the triangular shaped mall. For ease of access to the rest of the mall, this store has entrance/exit doors on both sides.

On both sides, the doors lead to the hallways of the mall with stores located across the hallways. The store does not have an outside access door…only mall access.

Directly across from one of the doors is a convenience store which sell all kinds of things…from milk and bread to souvenirs, lottery tickets to o-t-c medicine and skincare products.

It’s a very busy store that does not have an access door from the mall parking lot. The closest parking is located just the other side of our case study store.

The only way for people to get to the convenience store without walking all the way around the mall, is to cut through our lingerie store.

And, they do that in huge numbers…to get TO the convenience store and to get FROM there back to the parking lot.

Imagine the chaos. Imagine the traffic counter working overtime!

Needless to say the 28 year old Mom who is running in to pick up some Children’s Tylenol to take care of her sick toddlers high fever, is not going to be enticed to stop and shop for lingerie regardless of the promotions or the sales associate who is standing on her head trying to make it so.

And, the 79 year old gentleman who buys lottery tickets every Wednesday, Friday and Saturday, week in and week out, is not considering purchasing lingerie for his sweetheart.

But, what about the woman who is going to pick up some milk while she is at the mall shopping for shoes?

Or, the guy who is going to get some chocolates from the convenience store three days before Valentine’s Day?

The executive continue to lament the lack of conversion in our lingerie store and refuse to lower the target.

  • Is the Store Manager making excuses?
  • Is the Conversion Rate set too high?
  • What should it be?
  • Has the unusual traffic situation already been taken into account?
  • Is there some wild and crazy way to stop these ‘walk through’ people and get them to buy something?

What would you ask, suggest, investigate and/or do if you were…

  • Director of Operations?
  • District/Regional Manager?
  • Store Manager?

We’d love to hear from you.

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