Maximizing Store Profitability: Optimizing Labor and Sales Efficiency Across 2,200 Stores

The largest auto care service center and tire retailer in the U.S. faced challenges in optimizing payroll utilization, sales patterns, and operational workload across its 2,200 stores. The organization struggled to balance labor costs with store performance, leading to inefficiencies and missed sales opportunities. Without a clear understanding of sales and operational workload patterns, the company was unable to optimize its payroll allocation and maximize store profitability.

A detailed assessment of payroll utilization, sales patterns, and operational workload was conducted to identify opportunities for improvement. The project team piloted solutions across three test districts, focusing on optimizing labor allocation, improving sales efficiency, and identifying technology utilization opportunities. The implementation of alternative technology enablers provided better visibility into store performance, enabling leadership to make data-driven decisions on payroll reallocation and sales strategy adjustments.

The retailer saw an 11.8% increase in sales and identified top-line sales improvement opportunities of 15% to 20%. Payroll reallocation opportunities exceeded 10%, resulting in more efficient labor usage across the 2,200 stores. The initiative improved store performance and provided the company with a clearer view of operational workload and sales patterns, driving better decision-making and profitability. The retailer is now better positioned to optimize labor costs and grow sales across its extensive store network.