demo-foodstore

Optimising macro space in response to Covid-19

Estimates show an annualised total profit opportunity of >£70m (+6% GP gain).

The challenge

With Covid-19 upending shopping patterns in its UK and Ireland stores, our client – an iconic UK food retailer – needed help to quickly adapt its macro space to these changes.

The solution

As a result of the global pandemic, our client experienced a rapid shift to online channels and significant mix shifts in-store. This meant space allocations were no longer optimised for customer requirements, sales, margin & inventory efficiencies, or operating costs.

To address this, we rapidly translated high-level sales forecasts into category & store-specific forecasts. These were used to guide updated space optimisation recommendations for each store & category to align to forecast performance.

We then identified the highest opportunity stores in the network for space change and supported planning for a rapid 50-store trial of the revised space allocations.

The results

The 50-store trial was launched successfully with performance tracking building in line with projections – sales volume, sales value & gross profit growth was delivered consistently ahead of control store performance. Waste settled at reduced levels and availability was improved. Estimates show an annualised total profit opportunity of >£70m (+6% GP gain).

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