Providing an analysis to improve the efficiency and customer satisfaction at the Lululemon 12 Oaks Mall store in Novi, Michigan. Data for percentages of total revenues retrieved from Trefis.com.
Lululemon values customer interaction for building brand loyalty. Prior to the Covid 19 pandemic a majority of their revenues were generated from Retail stores.
Distribution of total revenues shows how customer buying behavior has changed because of the pandemic.
The goal of our solutions are to optimize the in-store shopping experience to encourage customers to interact with the company. Employees can use the face-to-face time to educate customers and promote products.
Originally customers were waiting on average 10 minutes 48 seconds to be served. An additional server reduces the waiting time to 3 minutes 51 seconds. Normally 4 employees and 1 manager per shift. Adding another server would remove an employee from working the floor.
With this solution, the store would have to be remodeled to accommodate for a new line. It would also require two additional employees working the registers as opposed to just one with option one. With this solution average time spent waiting is 3 minutes 48 seconds.
Lululemon values educating customers and building relationships. Adding an additional manager to peak shifts allows them to help customers shop and improve the overall customer in-store shopping experience. Managers are knowledgable about products and can effectively assist customers.
This particular store had the staff to comfortably implement and still provide the majority of employees with two consecutive days off. X indicates a scheduled shift O indicates the employee has the day off.
Lowering store capacity for social distancing created an additional waiting line to get into the store.
Minimizing checkout waiting time simultaneously minimizes waiting time to enter store.
Pop-up shops can serve more customers in the area who refuse to wait for entrance to the main store.
Continue to maintain online presence and continue to offer delivery and in-store pickup.
Combine Phase 1: Option 1 and Phase 2
Add a 3rd server to the line and add a manager to 3 shifts (Friday-Sunday)
Labor costs are estimated to Increase approximately $522
Average waiting time for customers to be served decreases approximately 64%
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