Redesign the retail store optimisation model to transform the business for growth

CLIENT:

Marionnaud France

 

THE CHALLENGE:

Marionnaud France was losing market share and many of its stores were loss-making.  The Group set up a  Turnaround Programme with a core team to develop the strategy and to identify workstreams to generate growth and reduce cost.   I was the Analysis & Insight Lead.

  

 

THE PROCESS:

Leading the business modelling, I worked with the finance team and the senior executive team,   I developed a Retail Store Optimisation Model that helped to measure the profitability potential of 560+ stores.  The model helped to highlight the loss-making stores and to identify the root cause.

 

For the transformation programme, we decided on two key focus.  Firstly to find cost efficiencies to free-up cash flow to support the second one which was to identify the revenue streams and opportunity areas for growing the customer and spent. 

 

I set up a problem-framing and discovery workshop with all the heads of department to develop the workstreams for the Cost Streams and Growth focus.  Together, we created six workstreams in each focus areas and identified the corresponding champions responsible for delivering the outcome.  We also identify together the main KPIs, milestones and timeline for each workstream. 

 

OUTCOME:

There were three significant outputs from this work: 

 

  1. The Retail Store Optimisation Model became the foundation to design a viable store operating model format.
     

  2. The company achieved 50 million euros in cost savings in the first year after store closures and redundancies.  The company also showed modest growth, about a 2% increase in sales and basket size due to better product range, CRM and sales targeting and pricing programmes.  
     

  3. The optimisation model was replicated across the Marionnaud Group to streamline resources and was recommended as a model for optimising store profitability across non-performing stores in other retail brands.

 

METHOD:

Stakeholder analysis, Discovery session, data analysis and business modelling