Case Study

Store Portfolio Optimization

National Multichannel Children’s Apparel Retailer Optimized Retail Footprint

A children’s apparel retailer was facing increasingly negative EBITDA in its retail and outlet store channel and required expertise to evaluate store portfolio projected future performance; implications for selling, general and administrative (SG&A) expenses; and landlord negotiation strategies.

The BRG team developed potential store-closure scenarios factoring SG&A, direct-to-consumer (DTC) knock-on sales, sales transfer, and loss of sales potential based on geographic clusters and cohorts. The team developed store-level performance dashboards with integrated go-forward scenario assumptions to be used in negotiation strategies.