14 April 2021
Topics in this article
  • Retail
  • Risk & Resilience

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

Challenge

Through 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, sought to quickly expand their digital footprint and ensure they could reach as many potential buyers as possible. Proxima was engaged to help facilitate partnerships that could open up new capabilities and create new revenue pathways.

Proxima helped to facilitate partnerships to emerge as a leader in online retail markets by developing lucrative alliances.

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.

Results

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

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