understanding the impact of store closings on revenue
A retailer of trendy fashions for tween girls, facing reduction in its physical footprint, wanted to take a customer data-based approach to measure the impact of store closing, including revenue shifts to other stores and to the online channel.
Understand measures that impact store closing, including revenue shifts to other stores and the online channel.
To assist with quantifying revenue shifts, Allant analyzed three stores that closed over one year ago, including web only customers who lived within typical shopping distance of the store, with expected store sales based on comps of stores with similar prior 12 month sales and transaction patterns within 750 miles of the closed store.
Allant used customer data to measure reversion, controlling for customer and new customer behavior based on a set of control stores for each closed store.
Store reversion process: