Success Story: Comet

Electrical retailer Comet relies on the MicroStrategy platform to deliver new management information to its purchasing teams and improve buying strategies.

Using MicroStrategy, Comet’s DPP (Direct Product Profitability) application not only gives its product category managers information on the gross margin of each product, but also presents them with a profit and loss account for their entire range by integrating data from various sources. DPP is used by all category managers at Comet’s UK headquarters.

“Enabling our commercial teams to see how much revenue is in each product — not only taking the cost and selling price of each unit into consideration, but also distribution, service, warranty, and delivery costs — affects buying behaviour and Comet’s profitability,” explained Andy Hicketts, IS Development Controller at Comet. “By having a single integrated BI platform from MicroStrategy, we can easily manage reporting to all our category managers, confident we are dealing with one set of consistent and reliable data.”

Chris Kent, Pricing Team Controller at Comet confirmed: “DPP is giving us information on brands and products that was just not available before. Now decisions are made taking the true profitability of the product into account and not just margin, as we would have done traditionally.”

The DPP project is the latest phase in Comet’s management information strategy using MicroStrategy. Comet has given its 250 store managers access to sales analysis and reporting, allowing them to share information, best practices, and increase sales. Some stores increased profits by up to 20 percent as a result.

Comet has more than 250 stores throughout the UK, offering a wide range of electrical products all at ‘Every Day Low Prices’. On average, 27,000 competitor prices are checked every week to ensure that Comet’s prices cannot be beaten. The Comet Web site is consistently ranked the No.1 UK electrical site and offers easy, convenient shopping for customers, it also incorporates the UK’s first major retail auction Web site. Comet offers a unique all-round shopping experience with a range of services including home delivery, full installation of products such as televisions and computers, take back facilities for large products, and comprehensive after sales service.