Italian retail giant counts on visitor analytics to improve its bottom line

Beachwear, hosiery and lingerie Italian retail group ‘Calzedonia’ opened its first store in 1986 near Verona. They created a new way of selling hosiery and beachwear for women, men and children and lingerie and knitwear for women and men through a franchise sales network.

The group’s popular brands include Calzedonia, Intimissimi, Tezenis and Falconeri stores. Calzedonia’s emphasis on stocking a wide product range, ensuring fashion forward style and high quality at affordable prices are major factors in the Italian retailer’s success. Today, the Calzedonia network boasts more than 3,100 stores worldwide and employs over 20,000 people.

The Business Challenge

Italian retailer Calzedonia Group recognises the importance of closely monitoring performance to maintain the profitability of its business. It relies on shopper analytics to measure key performance indicators (KPIs), identify where changes need to be made and take any necessary action.

Conscious that accurate conversion rate figures are essential to business growth, it embarked on a rigorous selection process to find a partner it could rely on to provide insights into consumer behaviour.

The Business Solution

Experian FootFall provided the following services to Italian retailer Calzedonia:

  • Experian FootFall Irisys counting system and maintenance
  • Peel off data
  • Customised data analysis software
  • Integrated reporting
  • Consultancy services

Benefits of Experian FootFall for Store Analytics

  • Staff rostering reflects visitor peaks and troughs
  • Objective measurement of store performance by conversion rate, average customer purchase and units per transaction
  • Ability to benchmark stores by size, type and location
  • Pinpoints stores not performing to their full potential
  • Highlights the effect of market changes (such as competitor store openings) on performance
  • Identifies the impact of internal changes (such as trial store layouts and positioning of promotional signage)
  • Performance management tool for staff development

“Since the introduction of the Experian FootFall system, conversion rates have improved by as much as 4%.”

Matteo Muraro, Commercial Director, Calzedonia Group

Calzedonia is one of a growing number of forward-thinking retailers who recognise the value of tracking conversion rate performance – the percentage of shoppers who actually make a purchase. They understand that a lost sale can not only send a prospective customer to a competitor but also result in the permanent loss of that customer, which repeated over time, will ultimately erode their customer base. Numerous factors can result in a lost sale including:

  • Insufficient number of sales staff on the shop floor for the number of customers in store
  • Poorly displayed merchandise – for instance, clothes on wrongly labelled hangers – making it difficult for customers to find the right size or an advertised product
  • The queue to pay being too long causing the customer to walk out without buying
  • Inadequately trained sales staff missing sales opportunities – for example, by refunding an unwanted purchase without even offering an exchange.

Customer counting gives Calzedonia a clear picture of the number of shoppers in store at any given time of day so it can act to prevent a lost sale. Following a rigorous trial of three competing systems, Experian FootFall’s system was found to be the most accurate. It has been installed in 1100 stores in Italy and an additional 900 branches throughout Europe with an agreement signed to supply a further 1000 Calzedonia stores.

Matteo Muraro, Manager for Calzedonia explains, “Customer counting is an integral part of our KPI strategy. We invested considerable time and energy in identifying a partner with the right combination of technology, consultancy and international reach whose product could be fully customised and integrated with our existing systems.”

“Customer counting is an integral part of our KPI strategy. The ability to view conversion rate data and other important performance measures in real time gives store managers the opportunity to act instantly to optimise performance.”

Matteo Muraro, Commercial Director, Calzedonia Group

Calzedonia shop

Experian FootFall software transmits data to store checkouts in real time, enabling store managers to monitor conversion rates and other important performance indicators without any time delay. In addition, every evening the day’s trading information is relayed back to the Calzedonia Group’s head office for analysis. Muraro points out, “The ability to view conversion rate data and other important performance measures in real time gives store managers the opportunity to act instantly to optimise performance.”

When performance dips below predefined benchmarks, store managers can take immediate action – such as moving staff from non-sales activities like restocking to serve customers. Consequently, Muraro reports that, “Since the introduction of the Experian FootFall system, conversion rates have improved by as much as 4%.”

‘Peel-off’ statistics – the proportion of passing shoppers attracted to enter the store – have also improved, indicating the increasing effectiveness of Calzedonia’s visual merchandisers in creating attention grabbing window displays.

The success of the Experian FootFall solution is such that Calzedonia views it as integral to its growth plans and intends to install the system in all new stores as standard.

Check out the Calzedonia Case Study