Our high growth retail client experienced a significant share price decline after missing earnings expectations. We identified the company’s core strengths and performance improvement options. The resulting broad-based performance improvement program created $2.5 billion in shareholder value.
P&C Helps Its Client Take a Step Back to Realign Product & Pricing With Customer Strategy
Our retail client had enjoyed high growth and was planning to double its store count within 2-3 years, as well as increase diversification into new channels, products, and geographies. Unfortunately, they had failed to meet earnings expectations for the ﬁrst time, causing a significant share price decline. Investors blamed a variety of factors including concept saturation and over-diversification.
P&C Worked With the Client to Address the Following Questions
P&C Identified the Client’s Core Strengths Before Articulating Its Performance Improvement Options
P&C Launched a Broad Performance Improvement Program for this Retail Client
Key driver of company store sales out-performance (~10% higher than retail industry average over multi-year horizon)
Drove $30M+ of annual savings after year one
Drove $11M of annual savings
Saved $40M in annual labor staffing costs
20% annual R&M savings and a 5% increase in new store ROI
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.