Greengrocers in Kent

GOALS: To improve the profitability levels of the business to move it from loss making to profit making

BUSINESS IN PROFILE: A retail greengrocers, coffee bar, market outlet and delivered greengrocer’s business.

THE CHALLENGES:  The business faced the challenges of several major multiple supermarkets in the immediate geographic area which had eroded the volume of sales from the High Street and considerably reduced profit margins across all areas of the business.

THE STRATEGIES: Following a mystery shop of their various competitors, a full review of their cost and selling prices was undertaken. Sales prices were moved up in line with the results of this mystery shop. The cash flow within the business was assessed and, although all areas have been improved, key attention was focussed on the supplier terms which have been lengthened thus helping the cash flow in the business. Management reports were produced to provide transparency on the financial performance of the various operations within the business enabling decisions to be made based off their individual profitability. A new client process has also been successfully implemented, which has delivered new customers boosting the turnover.

THE OUTCOMES: Overall gross profit margin in the business has been increased by around 20 %. Sales which had been falling have been stabilised and are starting to grow and the business which had made material losses during 2010 will now make profits in 2011. The owners, who had been subsidising their business are no longer having to pump their own money into supporting it. 

“Without Smart Support we were facing closing our business, but now we can see a way forward”

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