Operations and Footprint Optimization for specialty retailer
Case study:
Operations and Footprint Optimization for specialty retailer
- Situation
- National specialty retailer acquired a competitor to expand its reach and complete its category coverage
- Client wanted to fix overlaps in the combined store network, turn around underperforming stores and drive cross-selling of new categories across the footprint
- Actions
- Analyzed and benchmarked store performance and identified key performance drivers and best practices
- Built a scoring model to cluster and rank stores by location, size, format, catchment area, role and category focus
- Conducted workforce analysis to determine optimal staffing levels
- Defined target P&Ls and key metrics per store cluster and mapped all stores to clusters with clear performance benchmarks and goals
- Designed consolidation scenarios to optimize the footprint including phased closure of underperforming and overlapping stores
- Developed a new store organization with roles, KPIs, incentives and daily planning routines and oversaw rollout and benefit tracking
- Results
- Harmonized and consolidated the store network, reducing store numbers by 15% while maintaining market coverage and enabling cross-promotion of both banners
- Established store clusters and implemented a store operating model with clear roles, accountability and incentives, reducing performance variance within clusters
- Improved key performance metrics including sales (+5%), productivity (+15%), customer satisfaction and net promoter score (+5 pts) while lowering operating costs (-20%) through optimized staffing and process improvements