Our client was a leading national, family-run, specialty grocery chain with over 70 stores and approximately $1.3 billion in revenue looking to transform its operations. Part of the ask was to review the current transformation plan, assess potential risks, and highlight any additional value accretive opportunities.
We went deep into key areas within merchandising, including pricing and promotions, store labor, and goods not for resale (GNFR), to identify additional opportunities. Moreover, we identified around $15 million in COGS opportunity, $5 million of which was immediately available.
Over the following five months, AlixPartners supported pilot programs across the transformation agenda that delivered between $40 and $45 million in benefits. At the end of the pilot, the client launched all initiatives across their business.
$70mn
potential gross margin improvement
identified in phase 1
