Retail gross margin is driven by a multitude of factors and variables, internal and external, controllable and non controllable that intricately interact with each other.    Factors such as product mix, PA buying & PA margin management, merchandising, discount schemes and planograms all need to be managed and balanced to deliver the best possible gross margin outcome for your business.    We can assist you in understanding and influencing your overall gross margin by: 

• Using available reports to drive understanding     

• Better buying      

• Understanding rebate (LTA/PBR) and their impact on margins when using various purchase channels

There is no single fit-all solution here - we focus on each department and getting the best fit for your store, demographics and trade.   

Protecting your gross margin derived from hard-won sales and managing the levels of losses is a key attribute of an efficient and profitable retail store.    We can help you to minimise the gap between gross margin and delivered margin:

• High level initial review to determine forward focus.    Broadly assess the risk and likelihood of losses arising in each of the three brackets of shrink:    Error, waste and theft

• Break out losses into known / unknown and target key problem areas and outliers

• Assist in investigation/resolution of any unexplained shrink 

• Develop and implement departmental specific checklists and corrective programmes  

• Evaluate and enhance suite of controls   

Efficient management of fresh food margins brings additional complexity and challenges.    The often perishable and unpackaged/unbarcoded nature of product that commonly requires some form of onward processing in readiness for final sale means increased scope for losses.     Fresh departments therefore merit a higher level of focus and control.    We can help you develop systems to manage/enhance:

• Complete and accurate recording of waste and reductions and management/control of same

• Efficient and accurate stocktaking, maintaining flexibility to minimise impact of stocktake on trade and customer service     

• Accurate, efficient and transparent calculation of results on cycles which best fit the needs of each department      

Demanding the highest levels of customer service, standards and instore availability while simultaneously having a desire to run your store efficiently from a payroll cost perspective will almost always present opposing challenges.      We can assist you navigating to a payroll model where a measured and controlled balance can be achieved:   

• Optimise store structures - hours / costs -  setting overall and departmental targets

• Benchmarking

• Software selection/evaluation and optimising use of same to fit your needs

• Software configuration and use of features to best suit the needs of your business.    Assess, implement and embed routines for:

  • Budgeting

  • Rostering

  • Time and attendance recording 

  • Payroll controls and exception reporting

  • Efficient management of other cost drivers - holiday costs, absenteeism and other payroll costs