As a global leader in pharmacy retail, our clients specialized in beauty, health, and wellness products sold through a large store network. Against the backdrop of COVID 19, and shifting consumer preferences, our client needed to rapidly adapt in order to meet customers’ new and emerging shopping patterns. 

Challenges

Through a combination of enforced lockdowns and choice, consumers were electing to make more online purchases in the immediate and ongoing aftermath of COVID-19. The client, having seen in-store revenue potential fall, was seeking was to quickly expand their digital footprint and ensure that they could reach as many potential buyers as possible. Proxima were engaged to help facilitate partnerships that could open up new capability and create new revenue pathways.

Proxima’s help to facilitate partnerships to emerge as a leader in online retail markets through development of lucrative partnerships.

Approach 

We worked with the client to identify potential partnerships with some of the nation’s top retail and food delivery providers. Initially using a small number of vendors, we were able to determine the success of the partnerships in driving incremental sales for the business. After a four-month pilot program, our team collaborated with key client stakeholders to expand the program to nearly 4,000 stores nationwide. We then leveraged the increased volume and developed strategic commission models to increase the average order value, further driving sales revenue, while decreasing the commission percentage paid to the vendor.

Outcomes and deliverables

Our team negotiated a hybrid commission model, resulting in substantial savings when compared to the base pilot agreement. The current contracts in place allow the client to reach an incremental customer base which is expected to lead to over $multiple millions in additional annual revenue.

Resources

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