Impacts of opening a brick-and-mortar store on the results of the Kulina.cz & .sk e-shop
Today, the 400 million-euro e-shop Kulina has experienced what it's like to open its own brick-and-mortar store. Despite the complex activities of a cooking school, local online and offline marketing, and quality customer service, it took more than 4 years to get the store into the black numbers.
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Results and benefits
Conversion rate growth of 12.9 %
Increase repeat orders by more than 12 %
Greater brand credibility and memorability
Savings on shipping and packaging costs by 21 038 CZK for 200 orders
Stores as a strategic step
Kulina has one of its key strategic goals to expand its brick-and-mortar store network, so they decided to go the Melody (formerly Pikito) route in the Czech Republic, Slovakia, and Romania. Melody stores have proven to be an effective tool for increasing repeat purchases and reducing marketing costs.
Conversion rate and sales growth Kulina.sk
Although Kulina normally records a decrease in conversion rate in April and May, and the summer months are traditionally the weakest, 2023 brought a positive turning point. In the second quarter of 2023, the conversion rate was increased compared to the previous quarter, which is in sharp contrast to 2022, when there was a decrease in the same period. This success, which Kulina achieved without extraordinary discount events, is primarily the result of the communication of the newly opened store and the addition of the in-store pick-up point to the e-shop cart.
Calculating Gross Margin Impact
The calculation can be done using the following formula:
Gross Margin Impact = Average Monthly Revenue x Conversion Rate Increase x % Margin
In this case, we can use two different estimates for the conversion rate increase:
Conservative estimate: 7.5% conversion rate increase
Realistic estimate: 12.9% conversion rate increase
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