Case Study: Seizing Competitive Advantage to Accelerate Growth

Seizing Competitive Advantage to Accelerate Growth



A leading Canadian discount retailer, selling both grocery and general merchandise owned strength-of-share throughout the Provinces. With $2 Billion+ in annual revenue, the discount retailer was seeking to streamline its grocery assortment in order to enhance its competitive positioning against expanding and other emerging competitors. The need to strategically prune in order to grow sparked the invitation for TPG to partner. With expertise in cultivating industry Best Practice concepts, in-depth assortment reviews for all grocery categories, and acclaimed support analytics for each Category Buyer to ascertain and confirm all recommended actions, our launching pad was set.

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We engineered a streamlined approach to customize industry Best Practices while navigating data limitations in the Canadian market. The process consisted of designing, developing and building multiple client-based internal sales and related databases. This was further supported by conducting QA assessments on all internal data and integrating, while synchronizing, third-party industry data. Critical to success was the ability to create assortment recommendations and supporting sales metrics for each sub-category and lead-category, and ultimately elevating to each Category Manager. We initiated a validation process for finalization and alignment among all Category Managers and in conclusion, quantified sales and financial impact of each recommendation to prepare category specific execution plans which would deliver sustainable growth. 


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Ongoing analysis category by category execution is in progress. However, early results confirm increased sales due to enhanced shopability and in-stock conditions are indications of a positive trajectory. Improved strategy delivering reduced out-of-stocks and increased shelf holding power have elevated shopper satisfaction and loyalty. In addition to lowering SKU count to those essential items delivering an optimal portfolio assortment, the discount retailer significantly increased SKU productivity, while lowering inventory and warehousing costs.

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