Organizational Model Transformation
Redefining merchandising processes, roles, responsibilities and reporting structures to support domestic and international channels and banners
A $7+ billion discount variety retailer with multi-banner, multi-channel, and multi-format operations in both the United States and Canada.
The client was expanding through the acquisition of domestic and international chains, the introduction of e-commerce capabilities, and the testing of new store concepts. The organization was struggling to manage this increasingly complex environment. They needed to redefine their merchandising processes, roles and responsibilities, and reporting structures to support their growth trajectory towards $10+ billion in sales.
The Parker Avery Solution
The Parker Avery Group collaborated with the senior executives to design a team-based organizational model that aligned buying, pricing, financial planning, inventory management, product development, sourcing, space planning, marketing and operations. The primary characteristics of the model included the following:
• Buyer centric organization with sufficient support to enable focus on the merchandise
• Clarity of roles, responsibilities and accountabilities to optimize process efficiency
• Focus on individual banner performance and uniqueness
• Minimization of organizational silos to remove barriers and improve collaboration
• Clear career paths and future opportunities
• Enablement of concept testing, innovation and merchandising big ideas
At the conclusion of the project, the CEO described the work as the most successful initiative the organization had undertaken in his tenure. The client immediately deployed the new organizational structure and began hiring to fill newly created roles. The client also engaged Parker Avery to design, develop and deliver training for the new organization.
One year after the initial project, the new operating model has been well embraced by the company and most new positions are staffed and deemed successes. The client is benefitting from a more efficient and collaborative merchandising organization and supporting processes.