Case Study: Specialty Retailing Turnaround
Leading Pet Specialty Retailer – North America
A leading retailer of pet care products and services was under pressure from investors and analysts to deliver a more comparable return on assets and build shareholder value. Competitors were applying aggressive pricing, differentiated assortment and innovative merchandising, gaining share and volume to their detriment. New leadership charged with “turnaround” responsibility reached out to The Partnering Group for assistance. TPG proposed the adoption of Category Business Planning best practices enabled by customized shopper research and recommended a restructure of the organization based on delivering solutions that aligned with how the consumers interacts with the retailers and the products.
Facilitate the implementation of a new strategic plan including the restructuring of the organization and the installation of leading merchandising and marketing practices enabled by customized shopper research.
- Led by TPG retailing, category business planning, and organization development experts, this retailer developed robust company, department, and functional strategies with clear focus on a newly defined target shopper. TPG designed category business planning processes, category scorecards, and customize consumer and shopper research. Cross-functional category planning teams were formed with key suppliers identified and selected using TPG-provided criteria. These teams, led by TPG, developed and implemented category business plans that achieved significant gains in sales, profits, and customer loyalty.
- TPG designed a new organization structured to execute procurement, merchandising, marketing and supplier management best practices. New role descriptions, structures, competencies and personnel development programs were designed and fully implemented. Additionally, TPG designed and facilitated value chain optimization pilots, private label development, portfolio planning, in-store merchandising initiatives and customer service programs that emphasized professional services unique to this retail format.
Reduced cost of goods, improved SKU productivity, incremental returns on supplier trade investment, increased Private label penetration, inventory reductions and lowered administrative expenses contributed to strong top and bottom-line results. Over the two-year course of the engagement, this client built shareholder value from just over $2.00 per share to over $25.00 per share.