3 Ways to Strategically Reduce Costs and Enhance Profitability
For all retailers, a challenge in the current recession is how to maintain profitability by reducing costs in the face of declining overall sales and price pressures — all without sacrificing the customer experience. Although challenging, effective cost reductions can be achieved.
Companies should start by gaining a new understanding of costs and profitability at both a granular level (SKU) and throughout all their key business dimensions: vendor, customer segment, product category, channel, distribution center, etc. Marketers intrinsically understand the need for quality data and analytics to drive strategy and execution. The same need exists when examining how to strategically reduce costs and enhance profitability. Here are three tips to help you get started on this process: