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Case Studies Luxury & Retail

Optimising store opening costs for a Luxury Fashion Brand

Home > Insights > Case Studies > Optimising store opening costs for a Luxury Fashion Brand

To support the roll-out of the brand’s new store design, Ayming was engaged to conduct a rapid diagnostic of capex spend to identify cost and process opportunities. 

The engagement provided the brand with transparency on existing store costs, should cost budget estimates, and a roadmap to achieving revised target opening costs without sacrificing design objectives.

Full-Hero-Luxury-Retail

The context

The Store Planning team was tasked with the implementation of the brand’s new design concept. With the challenging retail environment in mind, the Director of Store Planning recognised the need for the business to ‘pause and review’ current performance to help optimise delivery.

Due to the lack of existing spend transparency and the need to engage stakeholders across the business, Ayming was subsequently engaged to deliver a Capex Diagnostic. The Diagnostic focussed on understanding the ‘As Is’ costs and processes and recommending a plan of action to improve costs and resolve process pain points going forward.

Our contribution/mission

  • Our experienced procurement consultants and category specialists built a comprehensive capex database across an agreed sample of stores. This was used to inform detailed cost driver analysis as well as a should-cost model for expected future costs.
  • To ensure our recommendations were representative of the business and in line with broader stakeholder requirements, over 30 internal stakeholders and key suppliers were interviewed.

 

The results obtained

The improved spend transparency enabled detailed analysis of cost drivers by products, region and types of stores as well as should-cost budgets for planned openings.

This was supported by an implementation plan and recommendations on how to reduce planned opening costs whilst ensuring alignment to the design, highlighting opportunities for costs savings as well as more efficient ways of working.

Our client

Luxury Fashion Brand