Improving profitability of an retail chain
Background
An retail chain had in recent years been suffering margin pressures that various changes by management had only relieved marginally, to the dissatisfaction of shareholders.
Approach
A broad approach was defined together with the client to analyze various aspects of the business such as: customer visit patterns, conversion, sales/shop productivity, and marketing effectiveness. Concrete improvement projects were defined and executed following interactive sessions with management.
Results
A critical change was implemented covering a new set of variance- based metrics that ensure improved monitoring. As a result, sales/shop productivity has risen 15 - 40% and bottom line results rose significantly.
