Situation: A leading international toy and baby retailer was seeing an erosion of market share from competitors Wal-Mart and Amazon. Under new leadership, the company decides to pin its future on a new format that combines children’s toys and baby products. Several combination formats are constructed in important markets across U.S. markets, each designed differently. Halverson Group is brought on by the executive team to evaluate and compare format designs to determine which one works best.
Approach: To understand which retail formats perform most positively, Halverson Group conducted a comprehensive study of the key attributes of two traditional and five combo stores across markets over the holiday season, using qualitative and quantitative research approaches in each store. On-the-ground research teams tracked the entire shopping experience of over 3000 guests, surveyed 200+ customers, and interviewed and shadowed 50+ employees. To gain an in-depth, quantitative understanding of customer experience in key areas of the store, such as the electronics department and the queue, advanced video and analytics were used. Insights around customer travel paths, store affinity, in-store signals, employee engagement and queue dynamics were formed into a set of insights and recommendations to guide executive leadership in their formation of a format strategy.
Outcome: The team provided a rigorous assessment of the new formats, highlighting their strengths and weakness and comparing them to the traditional formats. Frameworks and insights, together with a database of video clips, quotes and photos, were used extensively by client executives to support strategic decision-making efforts. Recently, the company’s CEO has been praised for fending off competitors and maintaining profitability throughout the consumer slump, with particular nods given to the implementation of a daring, yet successful new format strategy.
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