Cameron Consultants, Cameron House, 61 Friends Road, Croydon, Surrey, CR0 1ED

CASE STUDIES

	Retail Household Goods Profitability


	This Store group invited Cameron to study the profitability of its sales of Bedding, Carpets, Electrical Goods, Furniture, Gardening, Paper Products, Toiletries and Toys. Cogent analysis showed Direct Profitability varied significantly. One product group – not the one expected – had by far the highest profitability. A heavy goods group, despite high margins, suffered from low sales intensity and very high labour costs. One apparently attractive sector had extremely high sales intensity, but this benefit was more than offset by weaker margins, high labour and other direct costs. Next, the IPP contributions of the various sectors were measured. Striking variations in traffic-building contributions were found, ranging from nil to 20% of sales value. Finally we reviewed the group’s significant advertising and point of sale budget, much of which was promoting operations with poor profitability. A plan for profit improvement was presented. A key conclusion related to excessive space allocations to several loss-making product groups. Back to top Back to Case Studies

CASE STUDIES


		Wholesale Distribution
		Engineering Excellence
		Manufacturing Excellence
		Retail Profitability
		Indirect Product Profitability