Merchandise and marketing
Merchandising
Innovative product sourcing both locally and internationally enables the group to offer customers exclusive and distinctive furniture ranges at affordable prices. Our merchandising strategy is focused on increasing sales of the higher margin furniture product category. View Merchandise sales for 2010
Our electronic merchandise catalogue is displayed in all stores. As the complete merchandise range cannot be stocked in stores, customers are able to navigate their way through the full range on a large touch screen, as well as view all colour and fabric options.
Our import programme enables us to offer distinctive and exclusive merchandise ranges which have the latest designs, manufacturing techniques and fashion trends. International factories are able to accommodate a broader range of developmental designs and have access to a wider variety and diversity of raw materials, which allows for product differentiation. Imports offer price and design advantages and mitigate the risk of disruption in local supply. As part of the group’s commitment to quality, all products are supported by local and overseas after-sales service.
Our supply chain model is based on merchandise being delivered directly by suppliers to stores. Stores are responsible for deliveries to customers, with an average of 90% of deliveries completed within 24 hours of the sale. Efficient stock management and successful product ranging enables us to achieve a good inventory turn.
Marketing
The group’s marketing strategy has proved effective in achieving high levels of customer loyalty, strong repeat sales and consistently high consumer awareness through the creative use of mainstream media advertising and non-traditional marketing strategies.
- Targeted marketing campaigns are tailored for the Lewis target market. These are aimed at communicating the group’s customer promise of value for money, quality, merchandise exclusivity and personalised service to current, settled and potential customers.
- Targeted brochure distribution is undertaken in core trading areas each month, with the brochures featuring the depth of the merchandise range, while leaflets featuring promotional lines are distributed in high traffic commuter areas.
- In-store promotions are effective in retaining and regaining customers. Selected customers are invited by the store management to special in-store events and exposed to the Lewis product offering.
- Customer loyalty is entrenched through the Lewis Club. Through this customer loyalty programme, over 600 000 Lewis customers receive the Club magazine bimonthly which includes competitions, coupons and merchandise give-aways for readers. Membership of the Lewis Club is free to customers taking out insurance when purchasing merchandise.
- The high level of repeat sales made to current and settled customers reflect the level of customer loyalty to the group’s brands. A re-serve programme identifies current customers for further credit extension based on payment history and current level of debt to the group. Marketing campaigns are targeted at these customers.
The creative and media functions within the Lewis marketing division have been outsourced to specialist agencies. This is aimed at enhancing the quality of the creative product, ensuring effective media strategy, planning and buying across all media and improving cost efficiencies.