This is a well-structured diagnostic case that requires candidates to break down Same Store Sales into its components (price, transaction value, transaction volume) and systematically identify the true driver. The case effectively demonstrates the importance of disaggregating metrics and using customer data to validate hypotheses rather than relying on superficial assumptions about market dynamics or pricing.
Shoe Co is a small affordable luxury shoe retailer. The brand is classic and fun. The average price point is $300 per pair of shoes.
Shoe Co has been facing a recent decline in Same Store Sales (SSS), while SSS of leading competitors’ is growing.
What is the root cause of the client’s SSS decline?