Case Study: Consolidation For Capability and Revenue Growth

Case Study: Consolidation For Capability and Revenue Growth


Client Description

Food Retailer – North America


A successful food retailer had several division, each with their own procurement and merchandising organization. Consolidation and growth of competitive retailers has created a disadvantage for the client in scale, efficiencies, speed and overall capability.


Develop a vision, strategy and organization design for consolidating procurement, merchandising and marketing while retaining a balance of localized decision making that will provide:

  • Enhanced purchasing power
  • Effective promotion & pricing (Central & Local)
  • A center of excellence for Own Brand development
  • Consistent, best-in-class procurement, merchandising and marketing practices
  • Increased level and capability of trade funding and supplier resources
  • A significant operating cost reduction

TPG Approach

  • TPG ‘s team assisted the client in creating vision for consolidation, including the risks, threats and anticipated benefits
  • TPG integrated consolidation into the corporate strategy insuring adequate prioritization, focus and resources
  • TPG’s designed the consolidated and local procurement, merchandising and marketing organizations
  • TPG facilitated the implementation of the organization design, minimizing business disruption and costs
  • TPG installed best-in-class practices to accelerate the achievement of the corporate goals


  • The overall consolidation went smoothly and had limited business disruption
  • Significant cost of goods reductions were realized from the enhanced purchasing power
  • Supplier resources increased considerably enabling more effective business planning including better pricing and promotion
  • The retailer achieved industry leadership in own brand development


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