Retailers perennially struggle to reduce their costs, knowing that cost inflation outpaces price inflation creating an unrelenting pressure on their business.
Typical cost reduction programs have historically produced 1 to 3% savings – valuable, but insufficient for retailers to thrive in today’s market characterized by flat demand, excess space and new low-cost competitors.
To establish a real difference to cost that leads to consistent or better profitability, we have developed approaches where 20 – 40 percent of operating costs can be cut from the business. In this report, we share two case studies where this was done successfully.
Three steps to a zero-based approach to cost
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