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Case Studies

Improve category performance

A New Atmosphere Attracts Health And Beauty Customers

A global grocery retailer wanted to draw near health and beauty customers into its stores — but how? The retailer contacted dunnhumby to gain insight into its health and beauty customer base and find out what customers really want.

The insight

A deep analysis using dunnhumby’s Shelf Review tool provided insight into what health and beauty customers respond to, and the best ways to present health and beauty products.

The action

The retailer turned these insights into action, with a strategy to build a “beauty image” look and feel in its stores. The new look and feel for the healthy and beauty department include prominent displays for novelties that include lights, samples, mirrors, special fixtures, and educational and brand communication. The retailer launched its test store with the new look and feel and selected three other stores as control stores.

The results

The updated range, placement, signage, and appearance of the health and beauty section led to better category performance and built loyalty:

  • Total category sales grew by 6.98% vs. 4.01% in control stores
  • Basket penetration increased 0.98% in the test store, but decreased 1.15% in control stores
  • Basket penetration of cosmetics and fragrance grew by 10.04% in the test store, -2.47% in control stores
  • Ratio of loyal customers (premium + valuable) grew to 55.7% from 47%