Projected revenue increase (range):
$309M to $2.47B
Increase in Revenue over 7 years for this Study: $633.4M
Factors that could increase revenue uplift to 1.55B:
- Take advantage of the new combined WI-FI and Camera analytics that provide unique linked customer insights benefit
- Track visit duration
- Track Walk bys
- Track Visitor trends & Foot traffic
- Further optimize material presentation to reflect customer insights gained from shopper behaviors
- Use video footage to review custom vignette styles & location effectiveness
- Further enhance BI integration
- Gap analysis to determine current layout efficacy on a store-by-store basis utilizing WI-FI &Camera analytics
- Invest in advanced layout optimization applications
Annual Revenue: $4.4B
According to McKinsey & Company, optimizing store layouts can boost sales by up to 15%.
One layout platform application, Ariadne, has cases studies that represent a 30% increase in customer engagement for WEKO and a 25% increase in sales in high traffic areas in just 3 months for IKEA
Floor & Decor already has R & D in customizing vignettes and optimizing material presentation that reflect the taste of the region and zip codes they are in, so for this study, we are utilizing a conservative estimate of a 1.6% multiplier.
The data reflects that knowing the effectiveness of optimizing product placements based on heat map data is critical to modernize and compete. This study concludes that Floor & Decor can be confident in a $309M to $1.55B increase in revenue (1% to 5%) for the Optimizing Layout Use Case.
Optimizing Store Layouts
Minimum Impact | Maximum Impact | For this Study |
1.0% | 5.0% | 1.6% |
*According to McKinsey & Company, optimizing store layouts can boost sales by up to 15%.
Picture 1: Store Layout Optimization