Recovering $4.2M of Hidden Margin in Retail Supply Chain
The Engagement
Stellar Retail Group, a 240-store specialty retailer, suspected margin leakage in its supply chain but couldn't pinpoint it. Polance ran a six-week analytics-led diagnostic that combined SKU-level profitability, vendor terms, and demand forecasting — surfacing $4.2M of structural margin two larger firms had missed.
Profit Diagnostic
Stood up a unified profit dataset across SKU, vendor, store, and channel — then layered in vendor terms and inbound logistics costs to see true landed margin for the first time.
Operating Changes
Renegotiated three vendor agreements, rationalized 9% of the assortment, and shifted the demand forecast to a daily cadence — locking in the margin recovery as ongoing operating model, not a one-time win.
The Outcomes
The numbers we agreed to move — and where they landed.
$4.2M
Margin Recovered
Annualized — from vendor terms, assortment, and demand-planning changes.
9%
Assortment Rationalized
Removed without revenue loss, freeing shelf space for higher-margin SKUs.
4x
ROI on Diagnostic
Six-week diagnostic paid back four times over inside the first year.
Engagement Facts
- Client Lead
- James Carter, CFO
- Organization
- Stellar Retail Group
- Location
- Chicago, USA
- Engagement Type
- Profit Diagnostic & Implementation
- Program
- Recovering $4.2M of Hidden Margin in Retail Supply Chain
Outcome
$4.2M of annualized margin recovered — through changes the team now runs as standard operating practice. The diagnostic alone paid for the entire engagement four times over.
Let's talk about the outcome
you're trying to move.
Tell us where you're stuck — strategy, digital, data, or all three. We'll bring a senior partner to the first call, share an honest perspective, and only propose work if we genuinely believe we can move the number.
Typical response within one business day · NDA on request · No obligation