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  This medium-sized chain invited Cameron to show how to improve profit by £1m per annum.

Cogent analysis showed existing product group profitability information overstated the profitability of some groups and understated others.

Net contribution (data not available pre-Cogent) showed large variations between product groups. Some groups had large space allocations but low profitability.

We found wide variations in contributions per square foot within product groups, ranging from sectors with more than £40 per square foot to sectors worse than minus £30 per square foot. Losses due to poor performing lines within product groups exceeded £2m per annum.

An IPP analysis was carried out to identify the hidden, traffic-building contribution of the loss-making lines. This showed significant variations between different product groups. Many loss-making products made no IPP contribution.

A plan was put in place to improve profit by over £1.7m per annum. This benefit did not include the £4m p.a. potential from reallocating product group space.

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