Case Study: a major national retailer achieves higher margins and better labor productivity with Point B

Labor Optimization that Works

A major national retailer faced a challenge with labor scheduling that was hurting productivity and customer service, as its stores were often understaffed during peak hours and overstaffed during slower periods. The company engaged the management consulting firm Point B to optimize its workforce planning using an analytical approach.

Point B developed a labor optimization model based on the retailer's store data, which included customer traffic and productivity metrics. Following an iterative process and field tests, the solution identified significant opportunities for improvement. Point B's model revealed a potential fleet-wide margin lift of over 5%, representing a profit opportunity of $75-$100 million, and found that cutting unprofitable store hours would boost net margins.