Category Capability Development in Russia

Client Situation

  • Fastest growing retailer in the Russian hypermarket sector where both modern retailing and hypermarket penetration are very low
  • Range significantly enhanced over the previous year but still some way to go versus competitors who have broader offers
  • Commercial and retail operations poles apart with stores making decisions on ranging based on personal opinion and gut feel
  • Own brand positioning misunderstood, underdeveloped and sales participation low.
  • Buyers driven by profit margins and the process of range construction is inconsistent from category to category with product ranges exhibiting many gaps and product duplications.

Our Approach

  • Western standard category review process & action plans developed to drive a more attractive offer at competitive prices
  • Choice, quality, price and on-shelf product availability positioned at the head of a structured approach focusing on customer needs
  • Suite of management reports developed to enable decisions to be made based on fact
  • Category teams reviewed and improved ranges using processes including category purpose, customer clusters, customer shopping basket profiles, customer decision trees & through competitor benchmarking
  • The look and feel of the merchandising was overhauled with a new horizontal & blocked layout to make it easier for customers to shop, simpler & cheaper for staff to replenish

Business Benefits

  • Margin continues to grow each year
  • Like for like growth maintained in double digits
  • Stock holding reduced as % of sales
  • Cross functional teamwork approach to fight the competition