Performance improvement for retailer
Case study:
Performance improvement for retailer
- Situation
- Retailer with a large private label assortment faced declining profit driven by rising product costs, skyrocketing stock levels and falling sales
- Goal was to identify and implement measures to improve assortment performance and profitability
- Actions
- Reviewed assortment performance and benchmarked breadth, depth, style and pricing against competitors
- Identified assortment gaps and issues and segmented the range into core, seasonal and capsule assortments
- Defined segment-specific policies for category depth, product renewal, pricing, promotions, sourcing and inventory management
- Detailed and quantified improvement initiatives across assortment design, buying, supply chain, pricing and promotions
- Results
- Next season’s assortment restructured with clear roles per segment, reduced overall breadth and depth and introduction of category management principles
- Supply chain, supplier base and commercial policies adjusted, improving forecasting, net working capital and margin
- 20% EBIT uplift achieved through improved assortment and a restructured supply chain