Confidential · RIDBS Store Profit Audit · Report v1.0
Store Profit Audit
Full Diagnostic Report — Sample Independent Supermarket
61
/ 100
Est. Monthly Recovery
R71K+
Once actions implemented
PG 1–2
Executive Summary
Key Finding
This store is operating at approximately 61% of its margin potential. The primary leakage points are concentrated in three areas: dead shelf space in Household and Confectionery (–R18K/month), shrinkage running 1.3pp above target (–R22K/month), and unclaimed trading terms from the top 8 suppliers (–R180K/year). All are recoverable within 90 days with the actions outlined in this report.
| Audit Module | Key Finding | Est. Annual Impact | Priority |
|---|---|---|---|
| Space Efficiency | Sales per m² –18% below format benchmark. Household aisle performing at R620/m² vs R1,400 benchmark. | –R216K/yr | Critical |
| GP% Leakage | Shrinkage at 2.8% vs 1.5% target. Promotional execution loss costing –1.2pp GP on average. | –R264K/yr | Critical |
| Layout & Planogram | 11% dead shelf space identified. 7 category adjacency errors. Impulse zone at 34% utilisation. | –R96K/yr | Medium |
| Trading Terms | Rebate income at 1.8% vs 3.0–3.5% potential. R28.4K in unclaimed promotional co-op. | –R228K/yr | Medium |
| Supply Chain | Stock turn on Dry Grocery at 14×/yr vs 18× benchmark. Ordering frequency too low on fast turns. | –R72K/yr | Low |
PG 3–4
Sales Efficiency by Department
Household
R620/m²
Benchmark: R1,400/m²
Confectionery
R890/m²
Benchmark: R1,280/m²
Dry Grocery
R1,240/m²
Benchmark: R1,510/m²
Personal Care
R1,680/m²
Benchmark: R1,750/m²
Chilled & Dairy
R2,850/m²
Benchmark: R2,550/m²
Beverages
R3,120/m²
Benchmark: R2,520/m²
Recommendation
Reduce Household floor allocation by 18m² and reallocate to Beverages and Chilled extension. This single change is estimated to recover R18,000/month in incremental revenue based on current productivity differentials.
PG 5–6
GP% Leakage Analysis
01
Shrinkage Rate — Above Target by 1.3pp
Declared shrinkage at 2.8% vs 1.5% target. Highest in Confectionery (4.1%) and Personal Care (3.6%). Root cause: no systematic receiving checks, unlocked stock room access.
–R22K/mth
02
Promotional Execution — GP Erosion
Promotional GP% averaging 3.1pp below everyday GP%. Price changes delayed by average 2.3 days post-promotion end. Supplier credit notes not being claimed systematically.
–R14K/mth
03
Cost Price Creep — Not Fully Passed Through
Supplier cost prices up average 4.1% over 12 months. Retail prices adjusted on approximately 60% of affected lines. 40% of cost increases absorbed rather than passed through.
–R8K/mth
04
Markdown Waste — Perishables
Average R14,200/month in end-of-life markdowns. Ordering quantities on short-life products 18% above optimal. Markdown decisions taken too late (24–36 hours before expiry).
–R14K/mth
PG 11–14
Priority Action Plan — 90-Day Roadmap
Phase 1 — Weeks 1–4: Immediate Actions (Zero or Low Cost)
1
Fix Dead Space — Household Aisle Reallocation
Reduce Household by 3 bays. Replace with Beverage line extensions (craft, premium water, sports). Reposition slow-movers to secondary positions.
+R18K/mth
Week 1–2
2
Claim Outstanding Promotional Co-Op
Submit credit note requests to 6 identified suppliers for Q4 2025 and Q1 2026 promotional activity. Template and contact list provided in appendix.
+R28.4K
Week 2
3
Implement Receiving SOP — Shrinkage Reduction
Lock stock room access. Introduce two-person receiving checks. Implement daily shrinkage log by department. Target: reduce from 2.8% to 2.0% within 30 days.
+R12K/mth
Week 3
Phase 2 — Month 2: Structural Changes
4
Renegotiate Trading Terms — Top 8 Suppliers
Volume-based rebate renegotiation with Supplier A, B, C, D, E, F, G, H. Target: +1.2pp rebate income on combined R14M annual procurement. Negotiation brief in appendix.
+R168K/yr
Month 2
5
Range Rationalisation — Dry Grocery
Remove 47 identified slow-movers with <4× annual stock turn and <0.8% category contribution. Replace with 3 new lines identified in category analysis (see Appendix C).
+R31K/mth
Month 2
Phase 3 — Month 3: Strategic Repositioning
6
Ordering System Overhaul — Stock Turn Improvement
Implement auto-replenishment triggers on fast-turn categories. Set minimum stock turn targets by category. Review supplier delivery frequencies with 4 key FMCG suppliers.
+R18K/mth
Month 3
Month 1 Recovery
R58K
Month 2 Recovery
R85K
Annualised Recovery
R852K