A multi-billion big-box retailer improves operating profit by 11% by reducing space and range complexity
The improvements in space planning yielded an 11% operating profit improvement per annum for the retailer. Point-of-sale waste reduction led to a $10M cost saving per annum, and the retailer was able to increase its product density in stores by 2.7%. The revised layouts and the new standardized Scorecard eliminated 75% of store display options while maintaining planning flexibility. Executing the process more effectively saved over 7,000 hours of unnecessary labor. The clarity freed management resources and enabled more junior employees to audit and manage their areas effectively.