Outstanding financial results achieved through programme of underperforming store closures.
Following a successful store-closure project for Wal-Mart, we were invited to propose a tailored programme for six loss-making Real stores. Management of Real, the hypermarket division of the Metro Group, saw our team at work when they took over the hypermarket operations of Wal-Mart in Germany, and as a result approached us. We provided an upfront payment, financial guarantee and upside-sharing scheme to ensure a no-risk solution for Real. With our local German team in place, consultants were allocated in each store to manage operations on the ground, covering all merchandise categories within food and non-food. We implemented a local advertising campaign to support the closures and ensure that brand values were protected so that no negative media interest would impact the ongoing stores. Our integral involvement also meant that Real management could focus on the ongoing operation of remaining stores. Financial results were so successful that the upside-sharing agreements based on over-achievement of initial targets were triggered. Subsequent to the initial project, we were retained as a strategic partner to continue managing inventory clearance projects and strategic store closures.