Store operations and footprint optimization for specialty retailer
Situation:
- National specialty retailer had recently acquired a competitor to increase its reach and round off its category coverage
- Client wanted to address overlaps in the combined store network, turnaround individual underperforming stores and promote cross-selling of new categories across its national footprint
Actions:
- Analyzed and benchmarked store performance along store-level financial and operational metrics
- Identified key drivers of performance and best practices
- Developed a scoring model to cluster and rank stores (e. g. location, size, format, catchment area, role, category focus)
- Defined target P&Ls and metrics per store cluster
- Mapped stores to clusters and set performance benchmarks and goals for each cluster
- Identified overlapping areas and proposed consolidation scenarios
- Proposed consolidation scenarios for optimal footprint and recommended phased closure of underperforming stores
- Conducted a workforce analysis for optimal staffing
- Developed new store organization with roles, KPIs, and incentives
- Recommended new staffing levels and daily planning processes per stores
- Oversaw roll-out of recommendations and and tracked realization of benefits
Results:
- Harmonized and consolidated store network, reducing store numbers while maintaining market coverage and cross-promoting offering of both banners
- Established store clusters and implemented agile store organization models with clear roles, accountability, and incentives
- Significantly reduced variance in performance across individual stores in same cluster through operational excellence and process standardization
- Achieved substantial improvement in key performance metrics including sales, productivity, customer satisfaction and net promoter score
- Reduced operating costs through optimized staffing and process improvements, while increasing sales via enhanced customer service
