Target - caramel apples Buying
Target - caramel apples Buying
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Situation
Situation
Reintroduced caramel apples last year in Super Targets within pop up shippers.
We had good sales, but poor profitability, a lot of spoiled product, and as a result negative gross margin.
This year we were were increasing the store footprint from 200 Super Targets to all 1,500 stores.
task
task
I needed to understand last year's challenges to make sure we wouldn't repeat them on a larger scale.
My tasks were to 1: interview the team who worked on the program last year, 2: identify the main KPI that are priorities, and 3: develop strategies for areas of opportunity.
action
action
Item Mark Up
Split the country into two regions, using competitive bids between vendors to improve overall costing.
Used the larger volume compared to last year as an additional incentive to improve costing.
Spoiled Product
Main region that had high spoilage was Florida since the distribution facility is far from the point of origin. I negotiated with the vendor to increase delivery frequency for our Florida guests, to make sure they have fresh product.
Developed a clearance program to push excess inventory during the final week, reducing waste and managing stock levels efficiently.
Created an in-season dashboard for the inventory team to monitor stock levels in real time and make necessary adjustments throughout the season.
Gross Margin
Expanded the store footprint, contributing to increased sales.
Increased Gross Margin by adding higher retail items, 3-pack, to the product assortment
result
result
Item Markup = +400bps compared to LY
Spoiled Product: 15% compared to 34% LY
GM% range: +13% compared to -11.8% LY
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