Case Study: How one mid-size Canadian grocer is improving profitability and cash flow

A Canadian mid-size grocer has always made freshness a top priority — and its commitment to local farmers, high-quality products, and exceptional service has been at the heart of its business for over 40 years.

However, when faced with ongoing income losses and unclear operational issues, the business turned to MNP for insight.

The challenge  

This mid-size grocer was experiencing sustained operating income losses that threatened long-term viability. While the symptoms were apparent, the primary drivers were buried in day-to-day operations:

• Procurement mismatches: High-demand items frequently stocked out, while underperforming products took up shelf space and tied up capital.
• Untracked spoilage: A lack of oversight resulted in excessive waste, further eroding already thin margins.
• Below-market pricing: Some key items were priced too low, leaving money on the table and increasing cash flow pressure.

Together, these issues weakened profitability, created operational complexity, and limited the business’s ability to respond with confidence.  

The solution

MNP’s Performance Improvement team applied a data-driven approach to identify the core issues and implement practical, measurable solutions:

• More innovative procurement: We analyzed product-level sales performance to identify what moved and what didn’t. The grocer reduced purchases of underperforming items and prioritized high-turnover stock, unlocking working capital and minimizing waste.
• Waste reduction: We mapped out where and how profit was lost due to spoilage and overstocking. Adjusting ordering practices helped recover lost margin and reduce shrink.
• Strategic pricing adjustments: Our competitive review flagged pricing gaps. Select product prices were realigned to reflect market norms, protecting margins while maintaining customer satisfaction.

This data-driven work gave them the clarity and tools they needed to take fast, informed action.

The result

 With changes implemented across three stores, the mid-size grocer saw meaningful, trackable results:

• Millions in savings were uncovered through more strategic procurement and waste reduction
• Healthier margins from smarter pricing and inventory control
• Improved cash flow visibility and stronger financial decision-making across departments

By applying operational findings through effective execution, they overcame today’s hurdles and strengthened their long-term resilience.

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