Retail Industry Success Stories Using MVT

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Company Name:
Saks, Inc.

Highlights:
Saks, Inc. used QualPro's MVT® process to improve advertising, staffing, in-store signage, and pricing to achieve a 5% increase in comp sales.

Information:
Before department store retailer Saks, Inc. employed QualPro's MVT® experiments, their company had been experiencing comp sales pressure and consistent operating margin erosion. QualPro began their 12-step MVT process by first selecting a strong Saks, Inc. project team and formulating an initial group of 230 potential improvement ideas. The MVT® experiments were designed to focus primarily on Saks, Inc. project management and result analysis. QualPro narrowed the initial 230 improvement ideas down to 30 possible test factors involving pricing, advertisements, and staffing. MVT® testing soon revealed that 11 of the 30 factors proved helpful for the business, five factors proved harmful, and 14 factors had no impact on Saks, Inc. During the MVT® testing process of the 11 positive test factors, top line sales increased by approximately $15 million. Refinement testing and implementation soon followed, yielding a comp sales boost of 5%.

Testimonial:
"It's very simple why we used MVT and that is we were trying to drive sales and increase profitability of stores. We were very attracted to the concept that 25% are going to work, 25 % are not going to work and 50% did not matter."

Don Watros
Chief Administrative Officer
Saks, Inc.

Since 1982, QualPro has used Multivariable Testing (MVT®) with 1000+ companies to test 100,000+ improvement ideas. MVT® tests between 20 and 40 ideas simultaneously, accurately predicting the bottom-line impact of potential process changes in weeks. Take existing process initiatives, like Six Sigma, to a whole new level. All process improvement tools and approaches (TQM, DOE, Six Sigma, Re-Engineering, SPC) can be enhanced through the use of Multivariable Testing by QualPro.