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New Clicks Australia Jeff Sher

New Clicks Australia Jeff Sher. New Clicks Australia – Review. Shared service capability now in place Franchise skills developing Successful integration of Price Attack Formulated & started to roll out pharmacy model New management structure – ASF/OMF Restructured to meet future growth

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New Clicks Australia Jeff Sher

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  1. New Clicks Australia Jeff Sher

  2. New Clicks Australia – Review • Shared service capability now in place • Franchise skills developing • Successful integration of Price Attack • Formulated & started to roll out pharmacy model • New management structure – ASF/OMF • Restructured to meet future growth • Leading the way in haircare, homeware & healthcare

  3. New Clicks Australia – The new way 1. Selling of stores: • Non-performers converted to Pharmacy • Franchisees who do not meet compliance standards - managed • Buying & selling now part of the business • Not limited to Priceline 2. Profit centres: • Marketing services • Store development

  4. New Clicks Australia – Behind the numbers • One-off costs quite significant for pharmacy & completion of Price Attack acquisition • Anomalies in the House performance • Pharmacy development • Reallocation of costs to meet demands of franchise business

  5. Booklet only Priceline - Snapshot

  6. Booklet only Priceline Pharmacy - Snapshot

  7. Priceline & Priceline Pharmacy HIGHLIGHTS • Appointment of Phillip Smith – brand leader • Appointment of John Stapleton – merchandise head • Restructure to meet demands of Pharmacy operations • Repositioned in response to market • 1.2m ClubCard members • 15 new stores (7 pharmacies) • Stock growth well below income growth • Achieved good sales growth in tough market

  8. CHALLENGES EDLP approach & Woolworths aggression Pharmacy positioning Pharmacy supply chain Systems development Shrinkage Priceline & Priceline Pharmacy • KEY ACTION PLANS • Interlocking marketing programme underpinned by “You Pay Less” • Change to Priceline business model • Changes to operational structure to deal with pharmacy • Supplier relationships for middle shop product • Investment in technology to cope with systems requirements • Upgrade in security procedures

  9. Priceline Pharmacy – Success factors Conversions: • Converting existing Priceline store (Prahran) • Sales growing in excess of 40% • Back & middle shop sales already at 18% - should double • Converting existing pharmacy (Bentleigh) • Script sales grown by 20% • Front shop sales up from 10% to 75% New site: • Mornington • Turnover A$45k per week from 300m² • Front shop sales 50%

  10. Booklet only House - Snapshot

  11. House HIGHLIGHTS • Brand Repositioning – Inspirational Homewares • Appointment of Simon Dryden & a restructured brand team • Developed a Local area marketing approach • Developed strategic Supplier relationships enhancements to other income to follow • Achieved 23% growth in Franchise fees • Won National Award for Retail Excellence

  12. KEY ACTION PLANS New marketing programme & Pay-TV alliance Redefine product classification Implementation of new in-store positioning Franchisee compliance Upgraded receivables Development of extranet & enhancement to billing CHALLENGES Growth in competition Sameness of product SARS – impact on import quantity Bad debts House

  13. Booklet only Price Attack - Snapshot

  14. HIGHLIGHTS Successful integration into business Resolved all franchise agreements Appointed Carmelo Francese as the new brand leader Resolved Master Franchisee in Western Australia Adopted a Marketing focus Overcome supplier & franchisee scepticism Price Attack

  15. CHALLENGES Complexity of salon vs retail Competition in Victoria Transition from previous culture Private label acceptance KEY ACTION PLANS New store format New customer communication Salon contract Association with women’s basketball Local area marketing Change of IT platform - easier decision making Price Attack

  16. HIGHLIGHTS Store development & marketing services shift to nil cost Development of franchise skills JDA first phase completed Developed an Integrated IT pharmacy solution Realigned costs from the centre to brands CHALLENGES Moving from cost centre to profit generation Growth in staff numbers to deal with franchise capability Getting expense allocations right with diversity of business models Office accommodation Shared Services

  17. New Clicks Australia – The year ahead • Restructured – governance in place • No additional funding required – store sale methodology • Priceline positioning • Store growth in pharmacy • House marketing • Price Attack – Victoria solution • Systems development – Franchise • Enhance capability – reduce costs

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