Case study: Category deep dive – Paper

Company overview:

  • Multiple Grocer with a total group turnover >£55bn
  • Paper sales of £1.1bn p.a in UK shops (toilet roll, kitchen towel & facial tissue)
  • 3,800 UK shops in multiple formats and over 7,000 worldwide

Business challenge:

Category sales had stagnated with promotion sales heavily relied upon to “trade” the way out of static sales. However, availability was poor with a sub-95% customer service level and the range had remained similar for many years. 4C were engaged to identify ways to increase margin performance and refresh customer proposition.

Our approach:

  • We looked at the overall line count and used the insight from the scandata to refine the range – removing substitutable products
  • The promotional plan was de-escalated to test the impact on total sales and CGM %

Value delivered:

  • CSL improved to 97% – ensuring better availability for customers improving overall sales
  • SKU count at the review was reduced by 10% and one of the tertiary brands was removed without impacting choice within any needstate
  • CGM improved by +1.2% pts – significant in a category of this scale