Turnaround and value creation plan for multi-channel retailer

Situation:

• Leading national multi-channel retailer faced deteriorating financial metrics:
  • Declining sales
  • Shrinking gross margins
  • Increasing costs
  • Decreasing EBITDA
  • Negative cashflow
• Consumer engagement was at an all-time low, as evidenced by:
  • Poor Net Promoter Score (NPS)
  • Low brand awareness
  • Declining loyalty
  • Losing market shares
• The advent of Amazon further accentuated the challenges faced by the retailer
• Previous turnaround attempts had stalled due to a lack of buy-in and execution rigor

Actions:

• Performed a comprehensive diagnostic to identify key issues across the value chain
• Devised a new omni-channel strategy and customer value proposition
• Aligned the strategy with customer preferences and market trends
• Developed a detailed business case quantifying the impact of strategic initiatives
• Restructured the cost base to fund the digital transformation and integrated operations
• Streamlined strategies and processes to improve efficiency and responsiveness
• Implemented the transformation through a series of targeted initiatives
• Monitored and steered the implementation of the turnaround plan
• Maintained communication to ensure momentum and engagement

Results:

• Defined and implemented a new business strategy and value proposition
• Boosted the sales share of online services
• Enhanced customer satisfaction and loyalty, as reflected in higher Net Promoter Score (NPS) and repeat purchase rates
• Met financial targets set for business recovery
• Halved business losses and returned it to profitability within 18 months
• Expanded market share across all sales channels, strengthening the company’s market leadership
• Established a sustainable growth platform for future value creation
• Developed new competencies in digital marketing, data analytics, and supply chain management