Case Study: Top U.S. Retail Company achieves 40% reduction in COGS and 16% gross margin improvement with GEP

Leading Retailer Achieves 40% Reduction in Cost of Goods Sold and 16% Improvement in Gross Margins

A Fortune 500 U.S. retailer with 500+ stores faced rising direct material costs and shrinking gross margins in its glassware and flatware category due to inflation, while retail prices could not be raised. After a successful pilot, the retailer engaged GEP to reduce COGS, improve margins, increase price transparency and identify new vendor partnerships.

GEP used value engineering, market research, vendor portfolio collection, pricing/qualitative shortlisting and eAuctions to expand the supplier base into lower-cost regions and negotiate better terms. The initiative cut COGS by 40% and boosted category gross margins by 16%, onboarded 46% new higher-capability vendors, and introduced new SKUs and packaging/pack-size improvements to enhance product quality and promotional flexibility.