This article provides a case study for GoMart, a three-generation retail chain of 125 stores that found itself facing increasing competition. With mature, experienced management and reliable business operations, the leadership team recognized the need to evolve operational strategies to maintain their competitive edge.
By adopting a new approach, GoMart achieved sales growth and increased profitability while effectively utilizing its established culture and experience. The company embraced new leadership and fresh ideas, leading to unexpected successes—such as rising cigarette sales and the expansion of other tobacco products (OTP). Additionally, they strengthened their loyalty program, further enhancing customer engagement.
What drove the need for change?
GoMart’s leadership team identified three primary operational and marketing challenges:
- Increasing concerns regarding age verification compliance and shrink.
- The large amount of time and effort supervisors spent identifying priority and focus areas for growth.
- The difficulties of integrating tobacco sales with GoMart’s loyalty platform, which was needed to optimize promotions and rewards.
What came next?
In partnership with BandyWorks, GoMart leadership identified control areas necessary for cost management and maintaining profitability. They initiated a trial period to assess the effectiveness of targeted analytics tools, promptly validating that the highlighted risk areas were accurate and actionable.
Initially, targeted controls were introduced to address shrink and age verification, with loyalty rewards integrated subsequently. Over time, the control framework expanded to include scan data services and loyalty system integration, and scorecards, maximizing promotional activities, rebates, and sales growth.
Age verification emerged as an early priority to mitigate compliance risks effectively. Central and senior management leveraged analytics to pinpoint compliance risks, guiding field staff toward precise inspections, targeted training, rigorous follow-ups, and timely corrective actions. With proven success from the pilot phase, the analytics-driven compliance tracking system was rolled out company-wide.
Incremental Approach to Change
Recognizing the value of gradual, controlled change to maintain stability, GoMart introduced incremental improvements:
- Shrink Tracking: Supervisors utilized analytics to track high risk shrink areas. They monitored results, coached staff, and intervened to address the issues early.
- Age Compliance: Comparative analytics was also used to identify stores at risk for age-verification compliance failures. Store teams received targeted training, focused audits, and consistent follow-ups, significantly reducing compliance risks.
- Store Scorecards: Implementing daily performance assessments at store level empowered managers to concentrate on coaching their teams and enhancing customer engagement. This resulted in measurable improvements in customer service and sales.
- Tobacco Integration: The integration of tobacco sales data with Paytronix loyalty systems effectively optimized promotional activities, rebate opportunities, and consumer rewards, leading to growth in tobacco sales.
- Loyalty Auditing and Rewards: A specialized loyalty audit tool ensured accurate delivery of customer rewards, boosting consumer satisfaction and loyalty. These enhancements particularly drove increases in tobacco sales through targeted promotions.
- Supervisor Analytics Tools and Coaching: Weekly, exception-based analytics provided district and regional leadership with clear insights, enabling swift interventions and coaching opportunities. Regional “lunch and learns” created an environment conducive to adopting these new technologies, enhancing buy-in and smooth integration across teams.
Impact and Results
By focusing on these targeted, incremental improvements, GoMart successfully achieved:
- Increased overall sales and profitability.
- Enhanced operational efficiency, allowing more time for store managers to focus on customer engagement and sales activities.
- Substantial improvements in age verification compliance and shrink management.
- Strong growth in tobacco and OTP (Other Tobacco Products) sales, driven by integrated loyalty strategies.
Ian Stewart, VP of Marketing at GoMart, attributed the success to the powerful combination of robust loyalty programs, focused operational execution, and effective utilization of data-driven insights.
According to Stewart, the straightforward analytics tools significantly accelerated problem resolution, documentation, and overall productivity, complementing the expertise of the seasoned store leadership.
Take Away
There are substantial advantages to strategically targeted, incremental operational enhancements supported by data analytics. By embracing a thoughtful, measured approach to change management, GoMart continues to strengthen its competitive position and customer loyalty, while ensuring sustainable growth.
