How we helped
Overview
A leading European grocery retailer with €15 billion in revenue and over 11,000 stores faced significant operational fragmentation and inefficiencies due to independent logistics and IT systems across its three banners. The company managed a vast product portfolio of over 190,000 SKUs, which created inventory management and supply chain coordination challenges, prompting an urgent need to streamline its offerings and improve margins.
AlixPartners ingested 20 billion rows of granular data to unlock deep operational insights and leveraged generative AI to assess and optimize the retailer’s entire SKU portfolio. By consolidating and replacing dilutive products, the team delivered six business solutions in just six weeks – an effort originally scoped for two years – driving measurable client outcomes within 12 months. The project included the automatic generation of 150 supplier playbooks to streamline sourcing and supplier engagement.
The transformation resulted in more than €200 million in margin improvement and a $4 billion increase in market capitalization, reflecting enhanced operational efficiency and investor confidence. The retailer’s strategic SKU streamlining and product portfolio consolidation delivered rapid, lasting financial impact and positioned the company for continued growth.