AMR Research Six Sigma Retailing Quotient Helps Retailers Find Billions in Lost Sales
Free AMR Research Assessment Tool Measures Store Effectiveness
Boston – December 14, 2004 – In the hyper-competitive retail industry, merchandising and promotional plans that are not consistently and properly executed in every store result in billions of dollars in lost sales. Out-of-stocks and unknowledgeable store associates are only a few of the complaints that cause customers to shop elsewhere. According to AMR Research, such issues cause an average customer to not return after three negative experiences. Wal-Mart claims that each lost customer represents over $200,000 in lifetime lost sales. Even though retailers have hints of why problems exist, 80% have not measured their store operations. AMR Research has created a self-assessment tool called the Six Sigma Retailing Quotient, which is a set of metrics that helps retailers realize these lost profits.
AMR Research’s Six Sigma Retailing Quotient (SSRQ) was built to help retailers quantify the effectiveness of their store operations. AMR Research designed the quotient in response to consumer feedback indicating that the current shopping experience needs improvement. The tool enables retailers to prioritize investments that positively impact the customer experience.
Retailers that have invested in specific technologies to improve their Six Sigma Retailing performance have realized the following benefits:
• 8-15% reduction in out-of-stocks
• 8% labor efficiency improvement
• 15-30% promo set-up compliance increase
The AMR Research Six Sigma Retailing Quotient outlines and measures performance on three interrelated store operations components that are critical to store operations success:
• Customer Intimacy – Providing a seamless, consistent shopping experience throughout the entire shopping experience
• Product Availability – Ensuring in-stock conditions without excess inventory
• Employee Efficiency – Empowering every store associate to deliver top quality service and improve productivity
“This one of a kind quotient provides a systematic and quantitative way to measure store operations performance,” said Rob Garf, retail analyst for AMR Research. “By leveraging its results, retailers are getting a handle on the true state of store operations, making good investments, and taking steps towards achieving the full benefits of Six Sigma Retailing.”
AMR Research’s Six Sigma Retailing methodology and quotient is being adopted by retailers worldwide. Retailers interested in measuring the effectiveness of their store operations can access AMR Research’s quotient by visiting http://www.amrresearch.com.
About AMR Research
AMR Research provides world class research and actionable advice for executives tasked with delivering enhanced business process performance and cost savings with the aid of technology. 5,000 leaders in the Global 1000 put their trust in AMR Research’s integrity, depth of industry expertise, and passion for customer service to support their most critical business initiatives, including supply chain transformation, new product introduction, customer profitability, compliance and governance, and IT benefit realization. More information is available at www.amrresearch.com.
Press Contact
Kevin Reilly
AMR Research
(617) 350-1754
kreilly@amrresearch.com
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