Declining conversion rate of the UA brand in CBS business unit of C company

Abstract

The CBS Business Unit is in charge of certain brands such as sport fashion and beauty under C Group structure, which is one of the leading retail groups in Vietnam had diverse portfolio of food and non-food segments. UA is one of the brands that had a high contribution to revenue among the brands of CBS. Although the number of customer visits remained stable, the conversion rate decreased. This symptom raised concerns about internal inefficiencies in retail operations. Using Van Aken & Berends’ problem-solving methodology (1), after analyzing multiple aspects of customer experience and store performance, the main problem identified was a stock availability issue leading to missed sales opportunities when customers could not find the right size or product they needed. Research revealed that the root cause of this problem was inefficient inventory allocation and replenishment processes. This study explores the root causes of this problem, validates them through stakeholder interviews and industry benchmarks, and recommends the solution.