Recent Successes from the SD Retail Team

• SD Retail Consulting partnered with the executive team of a top 20 US big box retailer to identify over $30 million dollars in annualized, recurring expense reduction and productivity improvement opportunities in the corporate headquarters. The changes provided critical savings while improving service levels to the stores and customers. Initial savings were realized within 30 days of the engagement, providing immediate impact to the enterprise and shareholders.

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• SD Retail Consulting recently assisted a major office supplies retailer in streamlining store operational processes in order to reduce store payroll costs and re-allocate hours from tasks to customer facing activities. The SD team reorganized the way store stock was maintained and re-engineered all stock handling processes including receiving, put away, shelf stocking and recovery. In addition, numerous up stream opportunities related to supply chain processes were identified that led to streamlining store tasks. Recurring bottom line improvement: Over $40 million.
  

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• A major east coast arts and crafts specialty retailer determined the need to review current retail pricing by Stock Keeping Unit (SKU). SD Retail Consulting was retained to determine high-level customer impressions of everyday chain-wide pricing and analyze weekly and peak-seasonal promotional performance for three key sub-categories. SD consultants constructed a high-level pricing elasticity index for assigned sub-categories based on the company's actual scan data and incorporated relative performance for everyday base pricing and various promotional pricing campaigns; to maintain base prices competitive with primary competition and determine which weekly promotional pricing tactics should increase total performance and customer traffic. The engagement resulted in increased revenue of 11% and 500 basis point improvement in margin for the combined 3 sub-categories. Pilot results lead to increased analysis on all categories of their business.
  

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• SD Retail Consulting worked with a $5 billion international apparel retailer that was reducing its brand portfolio and needing to streamline headquarter organization and reduce costs. By reviewing corporate functions, cross departmental activities and store support levels, the SD team was able to reduce headcount by 10 – 40% across departments and save over $20 million in costs.
  

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• A major entertainment retailer retained SD Retail Consulting to drive down operating costs throughout its business. SD Retail systematically moved through the organization to identify, test and implement solutions in stores, operations/labor, merchandising, marketing, accounting/finance, visual/communications, IT, etc. Recurring bottom line improvement: $17-20 million.
  

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• A national marine products retailer retained SD Retail Consulting to evaluate processes, tools and organization of the Merchandising and Planning & Replenishment Groups. SD Consultants identified, tested and implemented solutions to reduce expenses and increase revenues through shortened cycle times, inventory reductions and improved sell-through. Recurring bottom line improvement: $20 million.
  

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• Based on previous successful consulting engagements in all main business units for this retailer, an international footwear retailer asked SD Retail Consulting to identify store payroll savings opportunities in the areas of store staffing and scheduling improvements. The goal was to increase time for associates to focus on customer service activities without increasing store payroll. The engagement resulted in labor savings/reallocation of more than 6% while increasing customer facing time from the sales staff.
  

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• SD consultants developed a customized training program for managers, assistant managers and other key store personnel for a regional grocery retailer. The training was designed to improve ad planning, store signage, in-store displays and cross-merchandising. SD Retail Consulting led the development and implementation of a cross-merchandising initiative that increased overall sales and market basket/transaction size. The training program enabled store managers to build more effective displays and improved signage in a de-centralized environment.
  

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