Business Case: Reinvent shopping experience in the Middle East
Re-imagining the Customer journey in challenging times for Retailers
Retail Store of the Future
Context
A leading retail company in Middle East has seen a decline in revenue and footfall in its Health & Beauty category for the past few years.
Challenges and opportunities
The challenges were a decline in market share, decreased footfall, and a lack of consumer connection resulting from the confusing and cluttered shopping experience. However, we recognize the tremendous potential for growth by revamping the beauty category with an enhanced shopping experience, rationalized brands, increased average basket size, and improved frequency of purchase.
Transformation Strategy
Our strategy centers around simplifying the shopping experience, reinviting consumers to the health and beauty category, and enhancing on-shelf education through the following initiatives:
Rationalizing brands to eliminate confusion and strengthen brand identity.
Expanding the assortment when necessary to create differentiation, cater to diverse consumer needs and highlight growing trends.
Enhancing the overall shopping environment with a premium drugstore “Look & Feel” and an emotionally engaging experience.
Implementing clear and visible sub-segments to facilitate easy navigation and decision-making for consumers.
Results
As a result of our transformation efforts, we have witnessed remarkable achievements:
Simplified shopping experience leading to increased consumer engagement and footfall.
Improved shelf education enabling consumers to make informed purchasing decisions.
Clear demarcation of sub-segments, highlighting innovations and growing trends.
Increased average basket size through enhanced assortment and premium shopping experience.
Make-up category experienced a 5% uplift in sales after consecutive years of decline.
Skincare category witnessed a significant growth of 34% in sales.
Coloration category recorded a notable increase of 25% in sales.
Haircare category saw a remarkable uplift of 28% in sales.
Conclusion
Through our transformational efforts, we have successfully simplified the shopping experience, re-engaged consumers within the health and beauty category, improved shelf education, and achieved substantial growth in key segments. Our initiatives have not only increased the average basket size but have also enhanced consumer satisfaction and connection to the retailer. By continuing to prioritize innovation, premium experiences, and strategic category management, the retailer continued to lead the way in transforming the Health & Beauty category in the region and drives sustained growth.
“Change before you have to”
— Jack Welch, CEO of General Electric
