Sales Analysis Report: Cluntclux Store
Augustine Stephen Abah
Expert in Data Visualization, Statistical Analysis, and Problem-Solving | Proficient in SQL, Python, Excel, and Power BI | Frontend Developer |
Overview: This report represents an analysis of the sales performance of the Cluntclux Store for the years 2020 and 2021. It expresses important factors such as the total sales, number of orders taken, number of orders returned, year-on-year sales comparison, and the best-selling states. Monthly breakdowns in both years further describe the sales trends and fluctuations throughout 2021 compared to 2020.
Key Results Summary:
2020 Performance:
2020 was a great year for Cluntclux Store, having posted sales of $13.23 million on 514 orders. The period had higher order volumes, hence setting a strong comparable base for the following year.
2021 Performance:
Sales in 2021 were $13.00 million, a decrease of 1.71% in sales from 2020. A total of 514 versus 486 orders represents a total number of orders reduction of 5.45%. The percentage of reduction in sales is much smaller; however, the reduction in orders is much larger, reflecting poor customer engagement.
Monthly Comparison:
A more detailed month-to-month explanation of all orders in 2021, compared to 2020, gives a granular view of performance by the store, as reflected in the table below.
Monthly Comparison:
A more detailed month-to-month explanation of all orders in 2021, compared to 2020, gives a granular view of performance by the store, as reflected in the table below.
Monthly Trend Analysis:
Months reflecting positive orders growth include January, February, June, September, and October 2021. The highest growth margin recorded was in February, at +32.61%, to show a very healthy start to the year. For the months of September and October, there was also healthy growth of +6.52% and +21.43%, respectively.
The months which show a decline, or a negative issuance of orders, are those of March, April, May, July and August, November, and December 2021. The month showing the most significant decline was April, at -35.90%, followed by August at -28.57%, and November at -28.89%. These months had considerably less customer activity with regard to ordering merchandise.
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Return Orders:
This means that, in this store, 200 orders were returned within a period of two years. That is a return rate of 20%, meaning one return for every five orders placed. A high return rate translates to low revenue and less customer satisfaction. Further analysis should be done to understand the causes of returns, such as reasons pertaining to product quality, delivery issues, or customer expectations, and find ways of reducing this figure.
Top 5 States by Sales and Orders:
The biggest states with respect to sales and order volume are:
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California
Texas
Florida
New York
Indiana
These were the major contributors to overall sales and thus may have been one of the most targeted markets for this store. However, the overall slight decline in sales and orders would mean that even within this region, there may be issues, such as competition or lower demand.
Year-on-Year Decline:
The contraction in sales by 1.71% and the volume of orders obtained reduced by 5.45% between the years 2020 and 2021, proving that several factors at the Cluntclux Store must have been acting as a hindrance towards growth. While sales went down marginally, a more considerable fall in orders could imply that there is slack interest from customers or lower levels of engagement, economic factors or change in consumer behavior, more competition that relates to key target markets, and products aren't satisfying enough as reflected by the high rate of return.
Conclusion & Recommendations:
Although Cluntclux Store had overall strong sales throughout the two years, this company has found that the number of orders placed is on a decline coupled with an astonishing number of orders returned. The following are steps the store may take to ameliorate the problems:
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Return Rate Analysis and Reduction: It will be viable for the comprehension of returned orders whereby corrective measures in respect of product quality and customer satisfaction may be effected.
Re-ignite marketing efforts: Special promotions or campaigns can be run in the top-performing states to observe a surge of orders.
Customer Reactivation Strategy: Customer loyalty programs, customized offers, or special customer service may be implemented to regain the loyalty of old customers or attract new customers.
Seasonal Sales Strategy: After sales are below average in months like April, August, and November, understand why such issues exist and then devise plans to increase sales in the poor months.
By attending to these areas, Cluntclux Store would reverse the decline and realize more consistent growth in the future fiscal years.
Prepared by: Augustine Stephen Abah Date: 09/07/2024
Senior Sales Manager at SeamlessHR | New Revenue | B2B SaaS | GTM | Embedded Finance
5 个月Thanks for sharing Augustine Stephen Abah