Case Study: a leading retailer achieves 40% lower COGS and 16% higher gross margins with GEP

a leading retailer reduces cost of goods sold by 40% with GEP

A top U.S. retail company with over 500 outlets, a leading retailer, faced rising direct material costs and declining gross margins in a competitive environment where raising prices was not an option. The retailer engaged GEP, following a successful pilot, to address these procurement and profitability challenges.

GEP implemented a strategic category management solution focused on the glassware and flatware category. The strategy involved applying value engineering principles and expanding and diversifying the supplier base through leveraged negotiations. With GEP's help, the retailer achieved a 40% reduction in the cost of goods sold and a 16% improvement in gross margins for that category.