UK Retail Industry Overview
Companies in the UK retail industry face ever-increasing pressure to retain their market share. They consistently need to drive value and differentiate their offerings through innovation or marketing strategies to grow their market share. Margins are constantly under strain and retailers must be creative when looking to cut costs and grow revenues. This case study is a classic example of how we helped a renowned company in the UK retail industry to realize savings of £50 million by reducing the Goods Not for Resale (GNFR) expenditure.
Business Challenges Faced
A renowned company in the UK retail industry was looking to drive maximum benefit out of their Goods Not for Resale expenditure. They recognized that inflation and the stagnating economy were increasing pressure on the UK retail industry and the competition for market share would only intensify. Margins were consistently reducing amidst weakening demand and rising costs. In such a scenario, GNFR procurement could be one of the ways to support top-line growth of the company. The client, therefore, approached SpendEdge to gain a tailored solution to their complex business model and improve ROI from GNFR procurement.
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Our Research Approach
To cater to the specific requirements of the client, the experts at SpendEdge conducted a retail procurement market intelligence study. This phase of the engagement helped the client to identify categories within the GNFR supply market that required market insights to procure effectively. The next phase of the UK retail industry analysis involved assessing the low value transactions and minimizing GNFR expenditure managed within individual business units. This helped the client to minimize excess spend and adopt a centralized approach for GNFR procurement apart from improving economies of scale.
Moreover, UK retail industry analysis helped the client to reposition and redefine procurement within the business, mitigate supplier risk, and implement best practices for procurement to improve operational efficiency. This improved cash flow, enhanced spend visibility across the business, and ultimately returned greater value to their shareholders by better managing their GNFR spend.
The customized UK retail industry analysis helped the retailer to realize the set target of £50 million in-year savings. In addition to this significant bottom-line saving number, procurement strategy aligned with business strategy helped the client to increase spend under control and improve value through greater TCO management.
Aligning procurement strategy with business strategy requires companies to perform UK retail industry analysis and obtain specific insights. Subscribe now to enjoy free access to SpendEdge’s pricing insights into the UK retail industry.
UK Retail Industry Trends 2019
- Retailers will need to invest in their workforce due to shifting employment landscape.
- Advanced technologies such as big data, machine learning can now be leveraged by businesses of all sizes.
- Businesses with small-format stores that carry little to no inventory will continue to emerge.