SUCCESS STORY
£15M working capital benefit
Health & Wellness Retailer: Range Rationalisation Programme
Outcomes
£15M working capital benefit
Through reduced MOQs and more efficient stock flow
With no negative impact on sales
2% sales & margin lift
Lean range improved conversion and performance
20% stock reduction
Lower stock holding and faster turns across the estate
improved customer experience
Increased conversion, ease of shop and ATV
BACKGROUND
A leading UK health and wellness retailer with over 700 high street stores was experiencing significant range proliferation.
Years of innovation and continuous product launches had resulted in an oversized, complex range that confused customers, slowed stock turns, and tied up working capital. Early trials indicated that meaningful range reduction could improve performance, prompting the business to explore the opportunity in more depth.
the challenge
Our client needed to understand how much of the range could be removed without risking sales or customer experience. A small number of SKUs were driving most of the revenue, while high minimum order quantities (MOQs), low stock turns and duplicated products were tying up working capital. To move forward, the business needed robust validation, clear risk mitigation and alignment across all functions before committing to a nationwide rationalisation programme.
SOLUTION
4C partnered with the retailer to build a comprehensive, evidence-based business case for nationwide range rationalisation.
- Ran a second, broader proof of concept across more stores to validate trial results
- Conducted SKU-level substitution analysis to ensure customer needs and missions remained fully covered
- Built the full commercial case, including sales impact, risk assessment and operational modelling
- Worked with cross-functional stakeholders to agree on mitigations, including:
– Stock rundown and excess reduction strategies
– Improved merchandising and store layouts
– Enhanced forecasting and availability controls