Challenge
A multinational fast fashion retailer faced significant merchandise performance issues, poor real estate decisions, and lacked management discipline and governance.
The company needed operational leadership to improve performance and successfully emerge from bankruptcy.
Approach
- Established new operating plan to drive improvements and manage cash flow
- Performed ecommerce site observations to drive both short-term opportunities and longer-term enhanced capabilities
- Conducted SKU rationalization analysis to determine # of items driving 80%/90% sales
- Right-sized store labor and improved store operating efficiencies
- Drove international inventory management and aged-inventory sell-down in addition to consolidating distribution network
Results
Pro-forma plan created $185M run rate EBITDA business on a $2.4B retailer
Reduced Operating Expense by $200M and Annual Rents by $125M
Identified 20-30% SKU reduction opportunity across divisions and categories
Client emerged from bankruptcy with new ownership, saving 15,000 jobs, 450 stores, a franchise network & $500M in annual COGS