Integrated portfolio companies for profitable cross-border commerce

Case study:

Integrated portfolio companies for profitable cross-border commerce

  • Multiple banners within one international retail group operated as separate companies across countries, serving similar customer segments
  • All banners faced heavy profitability pressure and cash drain, leaving no headroom for urgently needed modernization investment in logistics, IT and digital touchpoints
  • No synergies were captured across assortment, marketing, IT and logistics, with each unit running its own setup
  • Defined a unified commercial concept with clear assortment, pricing and campaign logic, then localized only where brand awareness, product preferences or local regulation required it
  • Designed an operating model with shared services and a central supply chain, keeping buying centralized while dedicating marketing to each commercial concept
  • Prepared warehouse and supplier consolidation and migration to joint IT systems to enable cross-border commerce and eliminate duplicate costs
  • Prepared the migration roadmap, including legal entity consolidation, asset and customer file transfer and organization redesign, and initiated the first integration measures
  • The client subsequently led operational implementation and introduced a harmonized multi-brand customer offering, lean and standardized where possible and localized where required
  • Operations were consolidated into one central company serving all countries with shared services across back office and front office, reducing structural costs by 50%
  • Restructuring was completed within nine months and led to positive EBIT, with a €6m increase in the following year

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