Case Study: Strategy to store roll-out
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Background
Asics has a very successful wholesale sportswear business based primarily in running footwear with a USP of cutting edge technology teamed with a strong Japanese heritage.

Although sales and sell though were buoyant across Europe they were focused in 8-10 running options, apparel sales were static and retailers were reluctant to expand the offer. Yet Asics in Asia had none of these issues due mainly it was felt to the Asics brand having it’s own retail presence which expressed the full width and depth of the ranges.

Asics Europe therefore decided to open it’s own stores to fulfil four strategic goals;
• Show customers and retailers alike the full branded offerdelivered in store to Asics core values
• To become ‘top of mind’ and number one in Europe for running footwear and appwerel
• Incrementally grow sales and margin across both channels to market; Wholesale & Retail
• Effectively clear residual store though factory outlets

Evaluation due diligence process
The VRI team were engaged to carry out a feasibly study as to the best way for Asics to enter the highly competitive retail arena. Recommend a strategic store capex, location & roll out plan and build the business process, people and product plans to deliver that plan and create the detailed objectives and critical path to ensure all four of the strategic goals and Asics retail vision was achieved.

Approach:
Product - Buying & Merchandising
A comprehensive review was undertaken to understand Asics brand values and customers product needs and enshrine these as the foundation of the retail product strategy.

All product current performance, history and best practice were reviewed in the wholesale division and was used in conjunction with the product strategy to compile an ideal graded store assortment plan.

In tandem with the product review, best practice merchandise; planning, trading, WSSI allocation and supply chain processes were created, once agreed these were converted into interim business tools, aligned with the product plan to deliver a balanced commercial assortment plan, ready to select from the available wholesale product ranges.

Ranges were then selected by VRI at the European brand meeting to fulfil the requirement for the store opening programme. Finally the interim merchandising tools were used to plan, open and trade the stores and moreover as a base to construct the framework for the long-term merchandising systems functionality, outputs and new system supplier selection criteria.

Results:
• First European store open in London, on time with optimum product offering & sales beating forecast
• Interim merchandise tools now converted seamlessly to new merchandise planning system
• Two factory outlets opened, sales exceeding plan and effectively clearing country residual stocks
• Retail product strategy and needs now a core element in the overall Asics European strategy
• New retail team in place using the business processes designed & developed by VRI