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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