A Dutch shoe retailer, aiming to achieve scale expansion and profitability improvement through a merger of multiple brands, asked us to assess its continuity perspective. The expected positive effects of the merger did not materialize, partly due to the shift to online sales and the temporary closure of physical stores during the COVID-19 pandemic. The company faced the challenge of rethinking its business model and closing unprofitable stores.
Solution:
Beaufort analyzed the contribution of each store to the company’s results and validated the plan for store closures. Based on this assessment, we developed a restructuring plan, including the accelerated closure of unprofitable stores, cost-saving measures such as rent reductions, and securing additional GO-C financing to support the transition. This plan stabilized the company’s operations, and it has since returned to profitability.
