Category management strategy for global groceries chain

Situation:

• Leading international groceries chain sought to review its non-food category offering
• Aimed to enhance innovation, promote cross-country centralization, and improve multi-channel propositions
• Objective was to optimize the non-food category strategy, improve sourcing efficiency, and enhance customer experience

Activities:

• Performed comprehensive benchmarking against competitors and specialist retailers
• Analyzed various aspects including product assortment, pricing, merchandising, and customer experience
• Identified best practices and gaps in the client’s current offering
• Identified country-specific characteristics and built clusters of comparable countries considering factors such as consumer preferences, competitive positioning, and strategic importance of the non-food business
• Defined strategic roles for each non-food category group – margin drivers, local accentuation, or drive-to-store
• Explored sourcing/procurement models like full category management, catalogue buying, and supplier bundling and feasible approach per international country cluster
• Assessed the feasibility, advantages, and risks of each model in the client’s specific context
• Built a comprehensive business case with expected savings from improved conditions and operational efficiencies
• Developed a detailed implementation plan

Results:

• Secured management endorsement for the proposed non-food strategy on central an country level
• Achieved organizational alignment around a common non-food category vision
• Delivered a compelling business case highlighting financial benefits from improved sourcing conditions and stronger assortments
• Kicked-off staffing of new central non-food organization with with necessary skills and expertise
• Initiated global implementation of the non-food strategy
• Developed a phased roll-out plan for smooth adoption
• Established a governance structure and performance metrics for progress tracking