Optimising macro space in response to rapidly shifting customer behaviour

The challenge

With the Covid-19 pandemic upending shopping patterns in its UK and Ireland stores, our client – an iconic UK food retailer – needed help to quickly adapt its macro space to meet changing customer needs and expectations.

In-store space allocations that worked previously were no longer meeting customer requirements, sales, margin and inventory management were all negatively impacted as were operating costs.

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The solution

Through advanced data-science and space intelligence capability, we were able to rapidly create category and store-specific forecasts that were used to guide new space optimisation recommendations for each category in each store.

The highest opportunity stores in the network we identified for space change, and a rapid 50-store trial of the revised space allocations was rolled out.

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The results

The 50-store trial was launched successfully with performance in line with projections. Sales volumes, revenue and gross profit growth were delivered consistently ahead of control store performance. Waste settled at reduced levels and stock availability was improved. Estimates show an annualised total profit opportunity of >£70m (+6% Gross Profit gain).