Global expansion boosts supermarket earnings and growth
A leading European supermarket chain asked Bain to develop a framework for international expansion. Bain evaluated multiple options and developed a phased seven-year international growth plan based on the highest potential value. The result: a significant increase in local market share and potential return on sales.
SuperFoodCo is a leading European supermarket chain and owner of a regional supermarket chain in the US. The company anticipated a significant earnings gap in years 4-10 in its 10-year plan and hypothesized that further international expansion could close this gap.
Other food retailers had already begun to expand internationally both organically and through alliances with local players. And increasingly, foreign markets and consolidation are key to continued growth in the food retail market.
The company asked Bain to develop a framework for international expansion, including a vision and action steps, to reach growth targets.
After evaluating various options for expansion, key action steps were defined for the highest-potential models.
Bain developed a phased seven-year international growth plan based on the higher potential value creation of local consolidation and competence transfer.
Based on Bain's recommendations, SuperFoodCo purchased a US retailer. This combination increased local market share significantly and raised potential return on sales.
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