UAT

Store Operations Efficiency

In-depth assessment of store processes, focusing on merchandising and inventory management, to drive labor efficiencies and improve competitive positioning.




The Client

A small-format value retailer with more than 11,000 stores across 40 states in the US, focusing on convenience and price as the basis for competitive advantage.


The Challenge

In order to stay competitive, the company runs a very lean store labor model — often stores will have only one employee on staff during low-volume hours. However, this operating philosophy necessitates extreme precision and efficiency in the design and execution of store level processes, and the client struggled with achieving the needed levels of performance. This challenge was further exacerbated by increased competitive dynamics in the value retail sector.

The client needed an objective perspective on assessing and improving its merchandising and inventory management store processes.


The Parker Avery Solution

Parker Avery used a streamlined approach to quickly evaluate the company's store performance and generate recommendations. The specific activities included:

• Reviewed current store operations process documentation to ensure an understanding of "as-is" process design
• Conducted structured store visits consisting of process execution observations, associate interviews and assessments of inventory and overall store conditions
• Synthesized findings into a series of recommended initiatives designed to optimize labor, improve inventory management process execution and strengthen business results


The Result

The client is planning the design and implementation of a combination of Parker Avery's recommendations and internal merchandising, supply chain and store operations process and technology initiatives. The client expects to:

• Establish process and technology enhancements aimed at improving store inventory accuracy
• Enable a reduction in store inventory levels while improving the in-stock positions of core merchandise
• Drive a decrease in store planogram reset and promotional activity and allow for increased focus on customer service within the stores


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