Insights

The Rise and Rise of Cost Reduction

How to cut between 20 to 40 percent of costs from a retail operating model

Retailers perennially struggle to reduce their costs, knowing that cost inflation outpaces price inflation creating an unrelenting pressure on their business.

Typical cost reduction programs have historically produced 1 to 3% savings – valuable, but insufficient for retailers to thrive in today’s market characterized by flat demand, excess space and new low-cost competitors. 

To establish a real difference to cost that leads to consistent or better profitability, we have developed approaches where 20 – 40 percent of operating costs can be cut from the business. In this article, we share two case studies where this was done successfully.

Telco operators successfully reduced OPEX per subscriber by over 30 percent in less than a decade


Three steps to a zero-based approach to cost Current


Fast and efficient replenishment solutions can deliver 1–1.5 percent operating efficiencies in store

The Rise and Rise of Cost Reduction


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