Case Studies
Case Study: Growing Sales & Profit
|
To grow sales, iControl performs a holistic analysis, store-by-store, to identify gaps and opportunities. iControl retailers routinely grow sales even when the national trends are in decline. |
Company Description
A large regional grocery chain with over 500 stores throughout the South, with several billion dollars in annual revenues and a re-emerging brand.
Challenge
The retailer did not know what selection of products in the newspaper category was being carried in each store or who the distributors were; the retailer was not sure what merchandising fixture was available in each store – or even if it was available in every store. The retailer's item file and pricebook was outdated.
Actions
iControl helped the retailer make an announcement to the supply chain announcing the program and then went to work:
• iControl conducted a physical audit of each store, and requested copies of 4 weeks of invoices from each store from every distributor, to rebuild the item file and pricebook.
• By the time the program went live, iControl was able to determine that several major newspapers had gaps in their distribution with the retailer. Some key newspapers had extremely limited penteration into the stores, and others had hit or miss penetration.
• After the program began, iControl aggressively rebuilt the retailer’s product line, store-by-store, adding titles that were missing, and in some cases eliminating titles that didn’t belong.
• The physical audit established that over 20% of the stores did not have adequate fixtures. Working in partnership with suppliers, iControl supplied and installed appropriate displays at each store.
Results
• Sales grew over 80% by the end of the first year of the program, compared to the first four weeks.
• Sales continue to rise, year over year.
• The retailer was able to generate several hundred thousand dollars in additional profit
Maintenance
