Improving Profitability in Fresh Food

Client Situation

  • A UK supermarket operator with 140 owned and franchised stores with a strategic aim to lead in fresh food range and quality
  • Operating within a saturated market, with declining customer loyalty and brand definition.
  • Diverse store size and sales density; making it difficult to support fresh food range profitably
  • Improving profitability in Fresh Food is key
  • Daily centralised delivery to stores; an enabler for freshness but a major driver of cost
  • Good product development and buying capability, but needing to develop range review and profitability processes and capability
  • Store and franchisee low adherence to centrally defined ranges, decisions based on stock loss rather than profitability
  • Limited data visibility creating a lack of stock and range insight as well as high waste
  • Our Approach

  • A detailed measurement completed of current processes, capability, systems and performance
  • Streams of work identified, including; order system capability, store stock management process compliance and capability, range and case size management and end-to-end opportunities
  • Local team leaders, supported by MRG, initiated projects to develop agreed change and benefits
  • Trials initiated to prove solutions and benefits, quick wins identified and delivered
  • Cross functional governance established, enabling quick decision making supported with insight from trials and new measures
  • Projects and objectives completed to plan with further change agreed pending wider strategic changes initiatives
  • Business Benefits

  • Project management and analytical skills developed within the central operational team
  • Reduced stock loss from implementing better store stock management processes
  • Understanding and new process for managing fresh food case sizes, profitably
  • Requirements defined for new ordering system once wider IT changes are complete