Case Study
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FORTUNE 100 RETAIL CHAIN IN CHAOS
With significant operational and customer service challenges, a first division Fortune 100 Retail Store struggled with lost sales, high shrink rates, and poor customer service. By implementing a structured, custom improvement plan made by Root Cause Operations, this D1 store utilized their teams strategically and empowered leadership to communicate and take back control. By working with hands-on expert teams integrated into their company, this Fortune 100 grew revenue and eliminated over $2M between resource and profit losses between three stores.
MORE ABOUT THE CLIENT
This massive retailer encompasses a global network that represents one of the world's largest companies. With over 2.3 million associates across more than 19 countries, they operate at the highest level of retail excellence. Their commitment to innovation and customer satisfaction is evident in everything that they do.
CHALLENGE
Inefficient Scheduling:
Staggered hours in the early mornings were set without analyzing customer demand, leading to understaffing during peak times and overstaffing during slow periods.
Weak Leadership Development:
Despite some leaders having 20+ years of experience, there was a lack of clarity in training, roles and responsibilities, and leadership mindset.
High Shrinkage:
Theft, broken processes, and lack of ownership among leaders contributed to high shrinkage.
Technology Training Gaps
Employees lacked training on digital tools and equipment leading to inefficiencies and missed opportunities for problem-solving.
Poor Cost Management
Expenses related to maintenance, supplies, wages, equipment, and injuries were not managed effectively, negatively impacting segment operating income (SOI)
Codependency Curse
Leaders and coaches relied to heavily on each other, slowing decision-making and creating inefficiencies.
Lack of Daily Alignment
Teams did not have structured daily communication, causing misalignment on expectations, issues and performance goals.
SOLUTIONS
Data Driven Scheduling
Shift hours were adjusted based on customer demand metrics, ensuring optimal staffing levels.
Leadership Development Program
A structured, ongoing training program was implemented toto clarify leadership roles, responsibilities, and decision making, promoting adaptability and a customer-first mindset.
Shrinkage Reduction Strategy
Enhanced loss prevention efforts through proactive measures, regular audits, and leader accountability for shrinkage in their areas.
Comprehensive Technology Training
Employees received hands-on training on digital tools and equipment, improving efficiency and problem solving capabilities.
Cost Management Improvements
Expenses were monitored more closely, and preventative maintenance strategies were implemented to control costs related to supplies, wages and equipment.
Fostering Independent Leadership
Ownership and accountability at all levels, reducing codependency through cross training and clear delegation of responsibilities.
Daily Department Meetings:
Short, structured meetings were introduced to align teams, set expectations, review performance and address operational challenges.
RESULTS
$10M Revenue Increase due to improved efficiency, restocking levels and customer experience.
$700K saved from Shrinkage Reduction through loss prevention and leadership accountability.
80% of Operations ran profitably without managers, thanks to leadership empowerment and independent decision making.
40% Improvement in Stock availability through better inventory management.
$123K Saved in Injury Prevention by implementing safer workplace practices.
11.7% Increase in CSAT due to improved associate training and support.
$81K in Wage Savings through optimized scheduling and cost control.
$400K in Gross Profit (26% Growth) achieved through profit first merchandising and proper ordering.
15% Productivity Increase in Month 1, 30% in Month 2 as teams gained confidence in new processes.