22.7k
Times solved
Advanced
Difficulty
Rating

Problem Definition

Our client is a supermarket chain in Britain called Sparx. They have been the market leader for more than 30 years. However 5 years ago they have seen growth stall and 2 years later revenues started shrinking, keeping so until today. The profitability of the chain has followed the revenue downturn trend, but dropped in percentage much more than the revenues.

They now hold only 25% market share, with the second player getting dangerously closer with 23%.

What’s wrong and how can you help them turn this situation around?

Do you have questions on this case? Ask our community!
22.7k
Times solved
Advanced
Difficulty
Do you have questions on this case? Ask our community!

Exhibits

Case Structure

Cost Structure

Costs have totaled £600 m last year. Costs have decreased in the last years, but much less than revenues.

Typical shopping basket

The typical Sparx supermarket contains about 100 different products.

Market share

Typical shopping basket

Prisma and Byite used to have, five years ago, about the same shopping basket as Sparx.