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Insights

How Coles maximized the ROI of a new aisle strategy

INDUSTRY

Retail

CAPABILITIES USED

Test & Learn®

PROBLEM

Attracting new customers with a revised aisle strategy

Coles, a large supermarket chain in Australia, launched ethnic food aisles in 100+ supermarkets across its network. The goal of these new aisles was to attract a new customer segment. Before rolling out this new aisle strategy across all supermarkets, Coles wanted to understand the sales impact.

 

APPROACH

Quantifying the impact of introducing ethnic food aisles

By using Test & Learn®’s proprietary control matching methodology, Coles was able to accurately measure the true incremental impact of adding the new ethnic food aisles. In addition, Test & Learn® helped Coles understand which store types respond best and how to target rollout of the new aisle strategy to maximize ROI. 

 

RESULTS

Optimizing the ROI of the new ethnic food aisles

$1M

Test & Learn® created a well-matched control group and found that the strategic initiative drove an incremental $1 million in sales per year.

$4M

Using Test & Learn®, Coles targeted the rollout of the new initiative to the stores predicted to respond best, generating an estimated $4 million in incremental margin per year.

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