Discount grocery chain

A value-focused, $4 billion grocery chain was undergoing a strategic shift, from a retail and wholesale mixed model to an improved wholesale-only business. AlixPartners assisted the company management team in creating and implementing a plan to recapitalize their debt, simplify operations, reduce SG&A, and spur additional growth with new and existing customers. Throughout this process, we assisted the company in working closely with retail partners to ensure transparency, build trust, and synchronize objectives in order to facilitate a successful business model transition.
 
As one example of this strategic shift, the company introduced an incentive scheme to boost purchasing power, and developed a retail pricing strategy to emphasize the value offered to customers. These changes were absolutely critical to regaining lost foot traffic, and increasing end consumers' share of wallet. Initial pilot programs that showed promise were then expanded across the company's network, and coordinated by a dedicated project management office, leading to a significant increase in warehouse purchases, totaling an additional $180 million in the first year.
 
As a result of these and other critical strategic and operational improvements, retail sales volumes saw an uptick, rising by 9% by the end of the first implementation phase, which set the stage for subsequent waves of initiatives that were part of the long-term improvement agenda. 

Retail sales volume improved by between 5% and 9%. Overall, a rollout with a solid return rate.