In tough times, retailers are always looking to increase operational efficiency and reduce costs. But there’s one place they seldom look hard enough: Goods Not For Resale (GNFR). GNFR typically represents around 25% of a retailer’s total operating cost, meaning that it accounts for 6% to 8% of revenues. Despite its importance, GNFR is rarely scrutinised in the same way as other costs such as instore labour – making it a major source of untapped savings.
Contributors: Oliver WymanCategories: Whitepaper