Turning losses into profits for a apparel retailer
The new owners of a clothing and accessory retailer known for its designs, hoped to accelerate growth by expanding into adjacent areas and extending its retail network, which included a catalog business. But with profits plummeting by 90 percent company recognized that to achieve its ambitious growth targets, it needed to strengthen branding and inventory management and reduce costs to achieve its ambitious growth strategy.
Working with the Company’s CEO, our business consultants developed a comprehensive turnaround plan that included short-term profit gains and long-term initiatives for sustained growth. We aligned merchandising and branding strategies , focused product development on items with high profitability for both its retail and catalog outlets and ensured organizational support. We also redesigned Company’s inventory forecasting models to improve efficiency and better meet customer demand.
To achieve over $5 million in profit improvements, client’s Company launched initiatives to increase overhead savings, boost its brand image, eliminate less profitable products and introduce a new “look.”
With improved inventory controls and product development, the retailer is able to stay ahead of trends, fueling faster growth.