A leading department store chain, with hundreds of outlets, had pinned its growth strategy on a cookie-cutter approach, stocking similar products nationwide despite a huge range in store sizes, layouts and customer demographics.
Department StoreCo’s strategy was straightforward: After acquiring other retail chains, it wanted to grow revenues and maximize efficiencies by taking full advantage of its scale.
It wasn’t a new strategy. Many giant retailers have built their success with a chain of identical stores. But times were changing; shoppers wanted more customized merchandise.
This trend was reflected in Department StoreCo’s slumping sales. As pressure intensified, the CEO needed to find a way to rejuvenate sales.