Grocery Retail Co. is a premium grocery retailer with presence in major metro cities across India. Its value proposition is focused on specialty premium grocery (e.g. global cuisines, exotic foods, etc.). The current value proposition is not driving profitable economics — while sales have grown, there is persistent loss of profitability. Customer behaviour is highly skewed towards infrequent one-off purchases — low share of repeat high frequency customers who relied on the store for their regular shopping needs. Current assortment is heavily proliferated with high Inventory days and non-moving stock leading to sub-optimal throughput.
Which of the following factors should Bain analyse first? Choose One
A. Current value proposition and value proposition of competitors, global players etc.
B. Contracts for purchase of various SKUs (stock keeping units)
C. Employee wages to be benchmarked against competitors
D. Store locations to assess spread and focus
Which of the following is NOT a priority for the client? Choose One
A. Improving customer loyalty
B. Increasing frequency to reduce inventory days
C. Improving profitability and margins
D. Identifying profitable stores and closing down others