Post merger integration and operating model design for accessories retailer

Situation:

• Multi-channel accessories retailer with different and partially overlapping national brands across Europe sought to consolidate operations and capture synergies post-merger
• Objective was to streamline the brand portfolio, optimize the operating model, and realize cost efficiencies
  

Actions:

• Carried out a thorough review of each brand’s positioning, target groups, price points, USPs, and assortment focus
• Identified strengths, weaknesses, and growth potential of each brand, assessing overlaps and cannibalization
• Evaluated geographic coverage, assortment similarities, supplier base, and customer file to identify rationalization opportunities
• Proposed, shortlisted, and evaluated potential integration scenarios, considering strategic fit and operational aspects
• Redefined target groups and value propositions, aligning with the integrated strategy while ensuring brand distinction and minimal cannibalization
• Identified brand and country-specific differentiation aspects, balancing standardization with local adaptation
• Identified harmonization opportunities in assortment, campaign design, and client-facing processes
• Explored shared services and centralization in customer care, logistics, and services
• Quantified synergies in areas like assortment optimization, marketing efficiency, organizational streamlining, IT systems consolidation, and logistics network optimization
• Defined a group-wide operating model and processes, designing a new organizational structure aligned with the integrated strategy
• Developed a comprehensive implementation plan, outlining legal entity consolidation, social partner negotiations, and IT/logistics integration steps
  

Results:

• Completed the integration within 9 months, achieving a smooth transition with minimal business disruption
• Maintained high employee engagement and retention, realizing significant synergies and cost savings across functions
• Leveraged economies of scale to drive efficiency while maintaining stable sales performance and high customer satisfaction
• Established a strong foundation for future growth and profitability