Case study: Operations and Merchandising​

Company overview:

  • UK privately owned retailer with UK sales in excess of £2bn
  • 400 shops in UK
  • Used 3rd party to distribute and merchandise cosmetics, gift cards, FSDU’s and assorted impulse lines

Business challenge:

Client was suffering from a lack of transparency of costs and performance with its preferred merchandising partner from the start to the end of the supply chain. We were tasked to determine if the cost invested by suppliers to enable the service was more effective than completing the merchandising in-house and investigate the supplier / merchandiser agreements terms to ensure appropriate hours are being allocated.

Our approach:

  • Analyse the impact of removing security tags on shrinkage and cost of doing so
  • Map out the hours required to complete the task successfully, verses those currently invested
  • Assess the impact of returning discontinued product to suppliers rather than marking down at the shelf-edge

Value delivered:

  • Removed security tags saving £180k p.a of cost – with no measurable impact on shrinkage
  • Introduced a returns process saving c£1m p.a of markdown and write-off costs
  • Re-aligned hours so that the right brands received the right amount of focus at the shelf-edge