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European retailers in the food industry are confronted with a "price war" that has been putting prices under intense pressure over the past few years. So they are permanently forced to enhance store performance by cutting down costs in each element of the supply chain. Furthermore, increasing customer requirements in terms of availability and freshness of products puts enormous pressure on a store's service performance. Stefan Mohr analyzes the product portfolios of several food retailers in a regional market using regression models and hypothesis testing. On this basis, he develops a store performance optimization model that enables store managers to understand the key drivers of supply chain costs and provides a concept allowing to enhance the performance of their portfolio in a hybrid way, i.e. reduce costs and increase sales.
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