Improve Store Performance Metrics
June 2012 Integrated Solutions For Retailers
By Erin Harris, associate editor
Specialty retailer Charlotte Russe implemented a traffic counting solution to optimize store operations across its portfolio of stores.
As a retailer, you’re concerned about the number of people who enter your store and make a purchase. You should also be concerned about the number of people who enter your store but do not make a purchase and the why behind that decision. Charlotte Russe, the growing mall-based specialty retailer of fashionable, value-priced clothing and accessories to women ranging from their teens to early 20s, needed to ensure its 500 stores performed at optimal levels in a challenging economy and knew getting accurate traffic data was the first step.
Charlotte Russe clusters stores geographically in order to compare KPIs (key performance indicators) of stores in similar areas. And, traffic counting is vital to Charlotte Russe’s business. Charlotte Russe compares outlets versus its traditional mall stores, as there is quite a difference in terms of traffic, sales, and revenue. Comparing similar types of stores within the organization is the only way to determine how a store is performing. “Not every store in our group is the same,” says Jennifer Evans, operations manager at Charlotte Russe. “Our stores come in varying sizes and cater for different demographics so we categorized them in cluster groups — traditional mall, tourist center, outlet store, and so on.” Evans explains that as part of its mission to improve operational performance and build greater value for its shareholders, the Charlotte Russe board of directors embarked on a program to improve store performance metrics, which started with securing accurate traffic data.