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Specialty Retail Consulting

Overview

The specialty retail sector provides opportunities and challenges for companies and financial sponsors looking to grow profitably and win in their category. Our leaders and experts help clients design and activate strategic programs based on insights into market trends, consumer behavior, brand positioning, and competitive dynamics. We create value for our clients by solving strategic issues that exist across their business, such as store productivity enhancement, geographic expansion (domestic and international), consumer segment activation, pinpointing overlooked and underserved growth opportunities, merchandising and pricing strategy, marketing mix evolution, M&A support, and much more.

Client Issues

Our experienced professionals have a deep understanding of the opportunities and challenges facing specialty retailers in today’s marketplace and encourage our clients to ask themselves a few key questions:

  • Do we truly have an accurate view of the different consumer groups within the addressable market, and do we have targeted strategies to ensure we are winning with the most important ones?
  • How do we build a compelling multi-channel, and ultimately, omni-channel business? Are we focused on what is most important to consumers? What does this mean for investments we need to make, and how we need to evolve our organization to function effectively in this new environment?
  • What role, if any, should a loyalty program play in our business and how can we get the most value from it?
  • How do we ensure our store experience is a winning recipe in the marketplace?
  • How can we optimize our marketing mix to acquire new customers more effectively and cost-efficiently?
  • How do we better manage our store portfolio to maximize productivity?
  • Should we / how do we grow outside of our core markets (U.S. geographies or international)?

Examples of Our Work

To learn more about how we help clients create value in the specialty retail sector, please refer to these insights and
case examples:

  • When a leading department store announced plans to aggressively target a major apparel retailer’s core market, the target company enlisted L.E.K. to develop a counterstrike strategy to strengthen its relationship with its core customers. A key component was bolstering the company’s existing loyalty program, which did not clearly differentiate the benefits for its most valuable customers or address other critical segments. Read More
  • For one of the world’s largest vertical apparel retailers, L.E.K. helped to develop a strategy to maximize its e-commerce opportunities, based on its unique market position and leading edge technology. The result was a successful acquisition and strengthening of the e-commerce channel across all of the company’s brands.
    Read More
  • L.E.K. assisted a major pet retailer in developing a new store format, including establishing strategies for new store merchandising, pricing, store branding and staffing that would resonate with customers and maximize value for the retailer. Read More
  • L.E.K. helps clients probe beneath the surface of shallow customer profiles and reveal hidden opportunities that provide companies with the true market intelligence required to focus their strategies on areas with the highest growth potential. Without this level of understanding, L.E.K. has seen many companies run blind strategically and pursue imperatives that are destined to fail. Read More
  • Loyalty is a key strategic tool for acquiring, engaging and retaining customers, but L.E.K.’s research shows that too many rewards programs are poorly conceived, resulting in initiatives that don’t meet retailers’ goals and loyalty cards that are passively exploited by consumers. L.E.K. helps clients create programs that create effective customer engagement and foster long-term relationships. Read More

View additional case examples

Please contact us at retail@lek.com for additional information.