Value creation plan for multi-channel retailer

Situation:

• Leading country of European multi-channel category champion retailer was enjoying strong market success and significantly contributing to group profitability
• Management observed fundamental changes in the market environment with potential to disrupt the currently successful business model, such as:
  • Rise of new competitors
  • Decline of store-based retailing
  • Advent of long-tail marketplaces
  • Direct-to-consumer initiatives of major suppliers
• Country management team wanted to redefine and future-proof its value proposition
• Transformation had to be self-funding

Actions:

• Analyzed market, consumer, and competitor landscapes as well as key trends
• Identified key trends and disruptive forces
• Distilled company’s SWOTs (strengths, weaknesses, opportunities, threats)
• Formulated a new strategy including detailing of
  • Sales channels/multi-channel proposition
  • Assortment breadth and depth
  • Pricing approach (always-low-prices vs. campaigns)
  • Value-added services
  • Organizational model
  • Fulfillment infrastructure
• Developed strategic initiatives with roadmaps and KPIs
• Identified cost reduction measures for transformation funding
• Consolidated financial projections and KPIs for business case
• Secured stakeholder approval and investment
• Established transformation program governance

Results:

• Strategic target picture and transition path defined, agreed upon, and funded
• Initiatives detailed, staffed, and set in motion for implementation
• Recurring implementation tracking rhythm established and targets achieved
• Country strategy and majority of developed concepts later became a blueprint for the parent group’s global strategy and transformation program
• Positioned the leading country as a center of excellence and innovation within the group