01

Case study · PRV-012

EBITDA margin widened by 5.4 points in eleven months

Store-level economics replaced store counts as the board's measure; 11 stores closed, 6 reformatted.

Client

PE-backed specialty retailer

$310M revenue · 84 stores

Industry

Retail

Service

Strategy & Growth

Length

11 months

Year

2024

Statement of result · EBITDA margin

Sample data

Before

8.2%

+5.4 pts

After

13.6%

Change

+5.4 pts

Relative

+65.9%

Timeline

11 months

Baseline 8.2

Source

Audited management accounts, FY2023 vs FY2024.

Retail store interior with lit shelving

Fig. · Client site — PE-backed specialty retailer

Sample image

Retail store interior with lit shelving

Fig. · Client site — PE-backed specialty retailer

Sample image

01 · The question

The board measured success in store openings. Which stores actually earn their capital?

02 · What we found

—

—

Eleven of 84 stores lost money once central costs were allocated.

Eleven of 84 stores lost money once central costs were allocated.

—

—

Local rent and staffing model explained more of profitability than store size.

Local rent and staffing model explained more of profitability than store size.

—

—

Six stores were profitable formats in units that were too large.

Six stores were profitable formats in units that were too large.

03 · What we did

We built store-level P&Ls the board could read, closed eleven stores, reformatted six into smaller units, and moved capital approval from store count to payback.

Deliverable · Store economics book

Sample · PRV-012

Store economics book

Measure

Result

Result

Note

Stores closed

Stores closed

11

11

Of 84

Of 84

Stores reformatted

Stores reformatted

6

6

Smaller units

Smaller units

Capital approval rule

Capital approval rule

Payback

Payback

Replaced store count

Replaced store count

PE-backed specialty retailer

Strategy & Growth ·

2024

04 · What happened

EBITDA margin widened from 8.2% to 13.6% in eleven months, on audited management accounts.

Before

8.2%

+5.4 pts

After

13.6%

Before

8.2%

After

13.6%

Timeline

11 months

Source

Audited management accounts, FY2023 vs FY2024.

Illustrative sample data. Provan, its people, clients, figures and sources are fictional and shown for demonstration only.

03

Client voice

“

The board stopped debating store counts and started debating store economics. That shift paid for the engagement inside the first quarter.”

James Whitcombe

Operating Partner, majority shareholder

PE-backed specialty retailer,

$310M revenue · 84 stores

Stmt.

Baseline vs result

Before

8.2%

+5.4 pts

After

13.6%

Source

Audited management accounts, FY2023 vs FY2024.

Back to the result

05

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Book a call

View Strategy & Growth

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

05

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Book a call

View Strategy & Growth

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

05

Next step

Facing something similar?

Talk to Helena.

Helena Marsh leads Strategy & Growth. A 30-minute call is enough to tell whether a result like this is within reach for you.

Book a call

View Strategy & Growth

Your request

≤ 1 working day

A partner replies

We’ll respond within one working day.

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