Consumer goods company needed to ensure the profitability of the traditional channel (supermarket chain), conducting a thorough review of EBITDA by location and evaluating opportunities in national network adjustments
Context
The supermarket company needed to review the EBITDA performance of its stores, as these presented a relevant variance.
Opportunities detected
The company presented a competitive EBITDA and EBITDAR margin at a consolidated level, corresponding to the 70th and 75th percentile of the sample of comparable companies. However, analyzing the stores individually, the wide variability of the EBITDA margin is identified. For example, 240 stores had an EBITDA margin below the average.
Proposed actions
All the negative EBITDA stores in the chain were analyzed, comparing their performance with benchmarks by cluster, which made it possible to identify the relevant gaps to make the operation profitable with a high level of detail.
Joint work was carried out with the store staff to establish hypotheses regarding the financial performance of the rooms.
Finally, excellent and lousy store management practices were observed, enhancing the favorable ones and making quick implementation improvements.
Impact
The maximum top-down potential was dimensioned based on the possible closing of gaps in each cluster of stores, identifying initiatives that allow increasing EBITDA by up to 9MM USD.
