A retailer's new distribution channel pays off - Bain & Company

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Case Study

A retailer's new distribution channel pays off

A barely profitable retailer with significant declines in sales asked Bain for help. We worked with the company to develop a new distribution channel strategy that increased sales by 10% and profit margin by 11%.

  • min read

At a Glance

  • 10% sales increase
  • 11% profit margin increase

The Full Story

The Situation

TechnoStore*, an established national player, had been barely profitable for many years, and sales had dropped by more than 5 percent in the past four years.

Executives were worried, but believed the company had considerable untapped potential. They asked Bain to advise on a strategy that would help them close the performance gap.

Bain evaluated and prioritized several growth initiatives, including a new distribution channel strategy.

Our Approach

Bain analyzed TechnoStore's performance targets and identified the top strategic priority: enhance the current business.

The Recommendations

As part of the overall strategy, Bain recommended that TechnoStore develop selected channel opportunities.

The Results

After it implemented the new strategy, TechnoStore's sales increased 10 percent; its profit margin climbed 11 percent and the company's share price rose significantly.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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