Operating scope

Country head

Capability

All capabilities

Active handovers

Outcomes written back

Connected work · Agent system

Business vertical

Finance, risk and shared services

Agent on shift

Reconciliation Agent

Accountable person

Controllers

Evidence · hourly

General ledger

Next step

MarginOS

MarginOS · screen 05 of 07

Markdown and promotion

Effectiveness net of funding, cannibalisation and the margin given away.

3 issues · 3 waiting on you

Issues in scope

3 instances across 3 places

Waiting on you

0 already decided in this session

Three largest

AED 13.4m–AED 39.0m

Modelled annual value, three largest only

Running without asking

0 armed and waiting on a threshold

Decision owner

Country head

Returns to Category and buy, Finance

Scope

Oman

27 stores · all capabilities

Listen

Promotional calendar and fundingTill lines, promoted and adjacentSpace heldMargin given away

Process

Net, not gross upliftCannibalisation inside the categoryAgainst the same space unpromoted

Act

Net view as the standing measureTreatment chosen by a personCalculation order confirmed with finance

Written backEvery outcome returns to the systems that produced the evidence.

KindOrder

Queue

3 issues · 3 waiting on you

Approve

Uplift is the standing measure and it is why these get repeated

Riyadh Avenue Mall, Murabba

What happened

Every promotional review runs on uplift on the promoted line. Uplift ignores the displaced space, the cannibalisation and the margin conceded, and it makes nearly every promotion look like it worked.

Why it matters

Changing the measure changes what gets repeated, which is the only lever that affects next cycle. Leaving it means this analysis gets read, agreed with, and then overruled by the number in the actual review.

Already done

The net calculation is built and reconciles to finance. Only the decision to adopt it is outstanding.

Worth

AED 9.8m to AED 29.1m a yearModelledUplift makes nearly every promotion look successful, which is why the failing ones repeat. Value is the change in what gets repeated next cycle.Failing promotions repeated next cycle

Then what

Measure change into the promotional reviewFinanceReports back 16 Oct

If approved

Net effectiveness replaces uplift as the standing measure from next cycle

If declined

Uplift stays, and the failing promotions get repeated because uplift says they worked

Choose

8 of 33 promotions last cycle returned less than the same space unpromoted

Oman

What happened

Measured net of supplier funding, net of cannibalisation inside the category, and against what the space would have earned carrying normal range. On uplift, every one of them looks successful.

Why it matters

These are not marginal. Each one occupied premium space, gave away margin, pulled volume from adjacent lines in the same category, and finished behind doing nothing. On the current measure they will all be repeated next cycle.

Already done

Each of the 8 is named individually with its funding, cannibalisation and space cost separated, so the treatment can differ by promotion.

Worth

AED 3.6m to AED 9.9m a yearModelledPromotions returning less margin than the same space unpromoted, net of funding and cannibalisation. Value is the margin recovered by stopping or changing them.Promotions below the unpromoted baseline

Then what

Treatment recorded per promotion, next cycle updatedCategory and buyReports back 30 Sept

Question

Netting funding before or after cannibalisation changes which promotions fail

Barka

What happened

The order of the two adjustments materially changes the result for promotions with heavy supplier funding and heavy in-category cannibalisation, which is most of them.

Why it matters

This is a finance convention, not an analytical choice, and it needs to be set once rather than argued per promotion. Whichever is chosen, the same order has to hold for every cycle or the comparison is worthless.

Already done

Both orders are computed and the promotions that change classification between them are identified.

Exposure

Not a revenue lineThe netting order changes which promotions fail. Without a fixed convention the comparison is worthless across cycles.Promotions changing classification by order

Then what

Netting convention set and applied to every cycleFinanceReports back 26 Sept