Arthur D. LittleArthur D. Little

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International retail chain of baby and children fashion and accessories

An international retailer of baby and children fashion and accessories had been experiencing declining revenues and profitability. Arthur D. Little was asked to conduct a diagnosis of the current situation and develop a short-term improvement plan allowing to get back to profitability.

Challenge

  • The client is a retailer of baby and children fashion and accessories active internationally through a large franchise network
  • The client had been experiencing declining revenues and profitability over recent years
  • The client asked to conduct a diagnosis of the current situation and to develop a short-term improvement plan allow to get back to profitability

Approach

  • Arthur D. Little conducted an in-depth diagnosis of the company’s financial performance, market positioning, performance on key retail processes and internal organization
  • A concrete improvement plan was developed in order to return to profit in the short term, along with a detailed business plan and implementation plan.
    The initiatives included amongst others :
    • The development of an annual promotion plan based on detail econometric evaluation of historical promotional returns
    • An extensive stock reduction through wholesale initiatives and the launch of a limited number of outlet stores
    • A targeted merchandising and real estate refurbishment to generate returns with limited investments
    • The launch of an attractive employee bonus plan to incentivize sales force and back-office staff

Value

  • All proposed actions were launched by the client within the ambitious time schedule set by the program (implementation on-going)
  • Concrete objectives were set and coupled with an interactive dashboard enabling the client to track both financial performance and realization versus plan

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