Strategy development for a retailer in CEE region

Facing the increase in the range of activities and development plans for international retail growth, our client decided to split retail and wholesale businesses, which were previously combined. The Management Board planned an expansion of retail network on the CEE markets.

The project conducted with Roland Berger Strategy Consultants was aimed at creating a complex development strategy for retail on both domestic and potential foreign markets. The scope included Polish market analysis and, on this basis, a recommendation for a long term retail development. In order to work out the strategy for development on the Polish market, we prepared a profitability analysis for current sales network and attractiveness of localization of retail POS. In order to plan international expansion, we analyzed the market situation in 10 countries and assessed which countries have the highest growth potential for our client. We recommended separating retail business as a legal and operational entity and designed a new organizational structure for it, including headcount. It was the basis for developing assumptions and forecasts included in financial model and valuation of the new enterprise in the next step.

The project resulted in recommending a model that assumed separating the retail part of the company, and valuation, which was a start for negotiation with potential investors. The client created a new company responsible only for retail.