PIP has developed a strong capability to support retail companies, both in the soft goods (or fashion) and hard goods segments. Our experienced consultants have worked in, and consulted to, large and small retail companies. We have supported large supermarkets; discount department stores; fashion chains; hardware retailers; and many more, in both company-owned, and franchised, environments.

PIP has a strong understanding of the drivers of profitability:

  • Sales: increasing foot traffic, conversion and, importantly, basket size
  • Cost of goods sold (COGS): range-planning, global sourcing, stock management (including markdown strategies) and buying process best practice
  • Cost of doing business (CODB): store labour optimisation – maximising the benefit of each store labour hour, space optimisation, overhead cost reduction, and non-labour item procurement and usage reduction
  • Funds employed: CAPEX reduction, inventory management

We employ a combination of proven improvement and specific retail tools, leveraging PIP’s proven business improvement approach to delivering measurable impact:

  • Marketing mix assessment: achieving critical reach, frequency and recall from your marketing spend
  • Promotional effectiveness toolkit: delivering increased net category sales through careful application of the 5Ps (price, product, place, promotion and people)
  • Sales Force Effectiveness training: maximising return on each hour of sales staff, through capability building, as well as effective management of staff
  • Store management wiring: providing the systems, tools and coaching to ensure management focuses on key activities to drive increased performance
  • Clearance management: processes and skills required to manage stock into the system and, equally importantly, manage it through the system
  • Process redesign: identifying and standardising best operational practice across stores and supply chain
  • Rapid and strategic sourcing: effectively sourcing key goods and services at better prices and improved quality
  • Capital redesign: ensuring optimal  CAPEX spend
  • ROX: managing the design through the construction process to both speed delivery and contain, or reduce, costs
  • Overhead cost reduction: matching overhead to business profitability

We have had significant success delivering impact with retailers:

  • Reduced addressable CODB spend at a supermarket chain by 10%, to deliver $270m of benefit
  • Reduced CODB at a discount department store by over $50m
  • Reduced CODB at an electrical retailer by $42m, at same time as business saw large sales lift. CODB reduced from 33% to 26% of sales
  • Identified COGS savings of around 15% at a fashion retailer through changes to value chain and improved offshore sourcing