Sales And Profits Double In 2 Years
Situation
Industry consolidation presented the chance to improve sales and profitability growth with a retail customer. This involved expanding the existing range in a premium sector that experienced lower levels of price discounting. New commercial and logistics agreements were needed to make this happen.
Task
To achieve a significant increase in sales and profit by negotiating and implementing a new supply contract.

Actions
- A new product range was agreed in line with the store profile and shopper demographics
- After financial modeling was done, logistics options and sales forecasts were prepared
- Terms for a new supply contract were drafted and approved internally
- The sales and buying teams negotiated a range and merchandising agreement
- A further negotiation involved the sale and installation of a highly visible in-store display unit
Results
- Sales from the store fascia doubled within two years
- Profitability increased due to a higher value and less discounted product mix
- Over 500 additional stores stocked the range
- The new display units quadrupled the rate of sale of certain high margin lines
- The agreement gave both parties a profitable source of revenue growth