A retailer with a long heritage as a small operating business part of a large multi-billion pound UK retailer, operating from 50 locations across the UK. They are a value-led retailer with a focus on family and being able to afford their customers a wide product selection that is both desirable and “on-trend” with quality products at an affordable price.
The business had made an operating loss for the previous ten years, with the customer proposition unclear and customers buying habits moving fast to alternative digital channels.
We quickly engaged with employees and customers to understand the opportunities that were available. The team then targeted small projects to deliver against improvements in the product assortment and range layouts.
This targeted approach allowed us to further develop the “model store” or “store of the future”, that addressed range selection and assortment, which was now driven by the clear customer proposition. In addition, we undertook a full review of their retail estate, which meant assessing their inbound supply as well as capex spends, which allowed us to implement areas of improvement across the business.
Outcomes and deliverables
The program ran for 12 months and delivered against the following objectives:
- Increase in both customer traffic and revenue – defining and implementing a clear customer proposition
- 15% reduction in indirect spend through supply chain, property assessment and colleague hour planning
- 10% reduction in direct spend via streamlined ranges / product assortment, re-negotiated supplier terms and the introduction of open to buy to manage cash flow
- Positive net profit return within 12 months
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