The performance improvement services provided by Practus assisted the Middle-Eastern chain of hypermarkets in reducing the current shrinkage of inventory reported (2%) of sales to between 0.5% to 1%, in line with the industry benchmark of 0.5%.

Client NameROIIndustryOwnershipManagementNo. of EmployeesSizeProject Duration
A Chain Of Hypermarkets & Supermarkets5xFMCGFamily OwnedFamily Managed~700$80 million24 Months

About The Company

MAAL Group is a family-owned and operated hypermarket and supermarket network established in the United Arab Emirates. Last year, the company’s yearly sales income was over $110 million. MAAL employs over 1,000 people from international and multicultural backgrounds and operates 27 retail and two C&C outlets across Abu Dhabi, Sharjah, and Dubai.​

Practus’ Role in Performance Improvement

  • A detailed review of the data revealed faults and inefficiencies. Analysis of top SKUs and imported SKUs revealed that $20 million in valued SKUs were overstocked, resulting in $1 million in additional expected financial expenses.​
  • Identified and assessed chances for additional improvement and cost reduction in areas such as logistics, labor expenses, and DMD function.​
  • Best practices were used, and approval hierarchies and charts of accounts were reorganized, as well as vendor masters and location masters.​
  • For visibility, created a complete MIS pack and dashboards, as well as a formal review procedure to identify important gaps or issues.

Impact Delivered in Performance Improvement

  • Allow for sufficient lead time for all SKUs to avoid over-and under-stocking. The average margin of the 23 distinct categories is currently 15%, but it may rise to 16% to 16.50% in the future.​
  • The results of the analysis revealed that optimizing vehicle maintenance, standardizing labor at stores, and offshore DMD duties will save more than $30 thousand per year.​
  • Current inventory shrinkage was reported to be between 0.5 and 1% of sales, which is in line with the industry average of 0.5 percent.​
  • To see if there has been a year-over-year growth in debt, a first draught of a three-year military plan was made  to reduce long-term obligations to annualized EBIDA in 3.5 years.​
  • Assistance with providing PL Visibilities to divisional heads and identifying several cost-cutting opportunities—implementation is still ongoing.​

See how Practus can assist you in improving your organization’s Performance