Case study – supercharging retail
Transformation partner for an iconic UK retailer
$328m annualised bottom-line profit improvement by reducing productive labour hours by 15% and 4% reduction of Cost of Goods Sold
3%
We help clients who have seen transformation
We look holistically and to the long-term
increase in sales whilst improving customer experience
This UK retailer was feeling the full force of the cost- of-living crisis. Soaring inflation amid supply chain uncertainty, driven by the Ukraine-Russia war and changing customer behaviours through COVID, left the organisation fighting to turn a profit. They needed us to turnaround business performance and help them return to profit, despite their poor track record of successfully delivering and embedding change. The desired outcomes were centred on improving customer experience and delivering productive growth.
We delivered a holistic transformation roadmap and successfully implemented four large-scale change programmes, while enabling several others.
We began with an enterprise-wide assessment across all cost areas within the business to identify a three-year roadmap and route to deliver $1.3bn in annualised benefits , while, at the same time, we set up a programme office to prioritise and track individual change programmes aligned to business strategy. During these productivity programmes, we: ■ Delivered over $160m cost reduction in Cost of Goods Sold by driving productivity improvements across the end-to- end value chain ■ Identified $130m of improved margin through availability improvement, returns volume reduction and OpEx reduction ■ Released millions of hours of capacity from store operations (equating to over $135m in annualised cost savings), whilst also improving CSAT (customer satisfaction) metrics and upskilling teams in sales effectiveness ■ Optimised delivery routes leading to one million fewer miles driven every year ■ Introduced effective e-commerce processes leading to four million fewer product substitutions leading to a lower cost for the business.
“Newton’s work has set the blueprint for how all change should be delivered.” Group CEO
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