ABSTRACT
LOCKBOX ANALYSIS: EVALUATING REVENUE LOSS DUE TO LOCKING BRANDS IN STORES USING TEST AND CONTROL GROUP METHODOLOGY
Journal: Acta Informatica Malaysia (AIM)
Author: Ankit Bansal
This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
Doi:10.26480/aim.01.2025.07.12
Brand withholding at retail stores, in which one brand is restricted from consumer availability or purchase, is employed most often to create exclusivity, maintain supplier agreements, or stimulate private-label options. Although the tactic can have an impact on brand image and consumer behavior, it can also lead to accidental revenue loss. This study examines the financial effect of brand locking through a test and control group analysis to provide empirical evidence for their store profitability results. The results show there is a quantifiable decline in total sales performance for locked brand stores, varying according to product category, substitute existence, and customer loyalty. The results mirror brand locking to cause revenue losses of 5-10% in terms of smaller transaction sizes, smaller basket sizes, and customers switching to substitution stores. Various factors including strategic pricing, special promotions, and the availability of substitution products were found to reduce some of these losses. The paper establishes evidence-based strategy recommendations to enhance brand-locking strategy optimization with a view to avoiding economic loss while still securing competitive gain. Retailers ought to utilize customer analytics, A/B testing frameworks, and forecast models to analyze the long-run sustainability of brand limitations. Follow-up research may also explore brand loyalty dynamics, customer churn dynamics, and category-level effects further to optimize revenue-maximizing actions. Results from this study increase the nuance of describing how brand access impacts consumer behavior and store profitability, allowing retailers to make knowledgeable strategic choices amid chaotic markets.
| Pages | 07-12 |
| Year | 2025 |
| Issue | 1 |
| Volume | 9 |


