- A major supermarket player in a fragmented market
- The company is in critical situation, mainly due to a deterioration in the country’s economic situation, investment policy in recent years, and excessive operating spending.
- The annual debt service is several times EBITDA.
- The client seeks the help of EREA to improve their P&L
Improve the company’s sales; renegotiate trade terms with CPG suppliers. Implement a plan to reduce operating expenses, which together with the improvement of sales will allow the company to improve its EBITDA
- EREA focused on supplier negotiations, promotional campaigns to bring back traffic to the stores, an optimization of operational expenses at both Corporate and store level.
- EREA’s interim management team, collaborated shoulder to shoulder with client executives to accelerate results of the P&L
- Payment terms are renegotiated with suppliers and the average credit terms accepted by suppliers are increased by 11 days
- Sales grew by +3.2% (compared to -2.0%) in the first half of the year.
- Market share rose 0.7%
- Trade Terms with CPG suppliers were renegotiated. An average improvement of 1.03 percentage points was achieved
- A Plan to save several millions in operating costs was designed, submitted to the Board, and approved
- Company is finally sold to new retail operator