Turnaround and value creation plan for multi-channel retailer
Case study:
Turnaround and value creation plan for multi-channel retailer
- Situation
- Heavily loss-making multi-channel retailer with declining sales, shrinking gross margins, rising costs, negative EBITDA and ongoing cash burn
- Customer engagement was at an all-time low with poor NPS, low brand awareness, declining loyalty and loss of market share as Amazon and other platforms gained ground
- Actions
- Diagnosed root causes of underperformance across channels and functions and defined decisive levers to stop cash burn
- Designed a new omni-channel strategy and customer value proposition with initiatives across assortment, pricing, services and online/offline integration
- Restructured the cost base through reorganization, store operations improvements, supply chain measures and outsourcing and freed up funds for transformation
- Built a detailed business case quantifying EBIT and cash impact, cost savings and required investments and secured leadership commitment
- Led a focused turnaround program to execute initiatives, track impact and keep management aligned
- Results
- Delivered €40m EBIT uplift, stopped cash burn and returned the business to profitability with positive cash flow and market share gains within 18 months
- Reduced cost base by 20 percent and reinvested savings in a strengthened value proposition
- Grew market share through higher omni-channel sales, improved NPS and repeat purchase rates and established a sustainable platform for further growth