Repositioning a mid-sized retail client for margin recovery
The challenge
A mid-sized retail client with over 60 stores was facing three consecutive years of declining gross margin, driven by an unclear mix of underperforming formats, rising occupancy costs, and inconsistent pricing discipline across regions.
Our approach
We built a store-by-store profitability model, segmented the estate into keep, fix, and close categories, and worked with regional managers to redesign pricing and promotional governance over an eight-week engagement.
The result
Gross margin improved by 4.2 percentage points within two quarters, and the client closed or renegotiated leases on 9 underperforming locations, avoiding an estimated $1.8M in annual losses.