Achieving culture shift

Capgemini’s Accelerated Solutions Environment (ASE) helped supercenter operator Meijer reduce its SG&A costs and create a “culture of thrift” that increased competitiveness and enabled expansion.

Meijer reduces SG&A costs and creates a “culture of thrift” 

 
Meijer is a large retailer operating more than 160 supercenters across the Midwestern United States. The stores feature a supermarket, health and beauty care and pharmacy, plus more than 40 hardline and softline departments, including fashion, automotive, home decor, pet care, and electronics.
 
Facing increasing margin pressure due to the expansion of national discount retailers into its region, Meijer needed significant and sustained reduction in its cost of business to enable future growth.

Validate, quantify, and consolidate

The project began with a six-week diagnostic and ASE session designed to validate, quantify, and consolidate transformation opportunities into an integrated program. After achieving two-thirds of the projected savings, a second ASE was conducted at month 15. The follow-up ASE was conducted to reinforce the capture of the remaining first-ASE savings and to add the required transformation line items, which would ensure the achievement of the SG&A goal.

Transformation methodology accelerates time to benefit

ASE sessions drive collaborative solutions and ensure buy-in within a compressed time frame.

Our goal was to take costs out of the company. With Capgemini’s help we are succeeding in doing this. But the actual company benefits go beyond the results linked to the program. The transformation has created a ‘culture of thrift,’ which affects day-to-day decision-making and prioritization around spending.

Jim Postma, Senior Vice President, Meijer Inc.

Transforming organisations to go further, faster; together.

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