Case studies

Excellence in store operations

CLIENT INDUSTRY: RETAIL
FUNCTIONAL TOPIC: OPERATIONS

Challenge

Our client, a fast-growing grocery retail chain with more than 400 stores (supermarkets and hypermarkets) asked Strategy Labs to assess in-store efficiency, define set of initiatives to improve operating margin, and test the initiatives in selected pilot stores.

What Strategy Labs did

Strategy Labs team has conducted a comprehensive review of in-store processes and measured operational efficiency across all levels and roles within the organization, including cashiers, in-store category managers, loaders, warehouse personnel and store administration. The team has also brought in external experts and benchmarked client performance against regional peers and relevant best practices. Strategy Labs tested proposed changes in 4 pilot hypermarkets, taking full control and responsibility of the stores for a test period.

Highlighted deliverables

  • New cashier scheduling mechanics and specific scheduling tools
  • In-store restocking algorithm and procedures
  • Min-max stock ordering rules from central warehouse
  • Category shelf turnover analysis
  • Revised roles and responsibilities of administrative personnel
     

Impact

  • 18 high impact strategic initiatives were identified, resulting in €22m annual cost savings from in-store efficiency improvement
  • New traffic forecasting and cashier scheduling, employee time allocation, warehousing ordering and other tools were introduced
  • Over the 3 months of the project, store operations efficiency of the four pilot stores increased by 8-12 percent

 

 

  • >8-12%
  • Immediate improvement
    in efficiency
     
  • 18
  • Number of high impact
    strategic initiatives
     
  • €22m
  • Annual savings
    identified
Working here

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