Making cost savings last: a breakfast roundtable for CFOs

Industry

Consumer & Retail

Retailers and consumer brands defending margin as shoppers trade down and channels keep shifting.

Minimal homeware store with shelves of black and white ceramics and display tables
Engagements since 2021
50+
Stores assessed in network reviews
3,400
Average gross margin gain from pricing work
+2.8 pts

Overview

We work with grocers, specialty retailers and consumer goods companies on store networks, pricing, assortment and cost, using store-level and shopper data to make the calls.

Consumer businesses live on thin margins and fast feedback. A pricing mistake shows up in the weekly sales report; a poor store opening shows up for twenty years. Our consumer work is built on detailed, local data: store-level profit, basket composition, shopper switching and competitor prices.

We work with grocers, specialty and general merchandise retailers, and consumer goods manufacturers in North America, Europe and Asia. Typical questions include where to open, refit or close stores, how to price and promote without eroding margin, and how to bring down the cost of running stores and supply chains while protecting the experience customers pay for.

What is shifting

The forces reshaping consumer & retail

  • 01

    Shoppers have reset their price expectations

    After years of inflation, customers notice price more sharply and switch more readily. Price perception now matters as much as price itself.

  • 02

    Private label has moved upmarket

    Retailer brands now compete on quality as well as price, squeezing branded suppliers and changing negotiations on both sides.

  • 03

    Store networks were built for a different decade

    Formats and locations chosen before online grocery and delivery are not all earning their place, but closures cost more than they appear to.

  • 04

    Labor cost is rising faster than sales

    Minimum wage increases and tight labor markets push retailers to rethink store operations, scheduling and the role of automation.

“For years we ranked stores by sales and argued about the bottom twenty. Looking at profit and at where our shoppers actually went changed which stores we were worried about.”
Chief Executive Officer, a regional grocery chain in the US Midwest

Have a decision on the table?

Tell us what you are weighing. A partner will reply within two working days, and the first conversation is on us.