Profit Analysis of Retail Business – The Brick and Mortar Case Scenario

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Profit Analysis of Retail Business –
The Brick and Mortar Case Scenario
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Executive Summary
The present report has been commissioned to investigate the profit and sales scenario of the
Brick and Mortar shop. The shop has started doing online business from the last year, and special
attention was given to analyze the effect on sales. This research illustrates that women clothing
and men’s shoes were the major products behind the profit of the shop. Cost of women clothing
was the maximum amongst different product segments. Credit payment was the primarily used
payment system in the store. Further investigation was made about the frequency of the
customers visiting the store, and frequent or regular customers’ were found to be loyal towards
the shop and their diverse product ranges present in the store. A gender base study was also
conducted to examine the difference in consumers’ attitude towards products, where males were
found to be more loyal compared to women. Finally, research was conducted for analyzing the
impact of the online sale on the profit level, and the average profit for online sales was found to
be the highest.

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Table of Contents
Executive Summary...................................................................................................................................2
Introduction...............................................................................................................................................4
Problem definition.....................................................................................................................................4
Results........................................................................................................................................................6
Customer Attribute Analysis....................................................................................................................6
Profit and Cost Basis Analysis..................................................................................................................9
Discussion and Recommendations.........................................................................................................18
References................................................................................................................................................19
Table of Tables
Table 1: Customer Attitude on Store Visiting Frequency.............................................................................7
Table 2: Gender Basis Analysis of Customer Attitude..................................................................................8
Table 3: Best Profit Making Identification from Total Profit........................................................................9
Table 4: COGS for Different Product Range...............................................................................................12
Table 5: Profit from Stores at Different locations......................................................................................15
Table of Figures
Figure 1: Best Product Class Identification by Average Profit....................................................................11
Figure 2: Best Product Class Identification by Total Profit.........................................................................11
Figure 3: Best Product Identification for Different Profit Ranges..............................................................12
Figure 4: Average COGS Product Wise Comparison..................................................................................13
Figure 5: Total COGS Product Wise............................................................................................................14
Figure 6: Decision Tree for COGS Segregation...........................................................................................14
Figure 7: Box Plot for PayPal Purchases.....................................................................................................15
Figure 8: Box Plot for Credit Card Purchases............................................................................................16

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Figure 9: Mean Profit for Store Location...................................................................................................17
Figure 10: Average Profit from Website and In-Store................................................................................18
Figure 11: Total Profit from Website and In-Store.....................................................................................18
Introduction
The first few names that come to mind for sportswear are Puma, Adidas, and Nike. The Brick
and Mortar market is the current leader in the sportswear sector with its collection of
international brands and their quality. There are few competitors in the town and for the same
reason, the shop finds new lines of products for both genders. The main business objective of
Brick and Mortar is to offer sportswear to all the participants from all over the world, and for this
purpose online sales have been initiated from the last financial year. The company with its ranges
of products have earned a pool of regular customers, who are contributing to making the
company a market leader (Porter, and Heppelmann, 2014).
For the purpose of business enhancement, the researcher has identified the key factors of the
business model, which will allow Athlete Panda to exponentially improve in the current global
income approach atmosphere (Sekaran, and Bougie, 2016). The professional approach will help
in maintaining a constant improvement in all regions of the trade.
Problem definition
The market research has been segmented in two components. Firstly, customers and their
outlook about the firm were analyzed. Secondly, the impact of merchandise range on profit and
cost of the company was analyzed. The collected information about customers' attitude was