MFP Successful Outcomes

Effective outcomes from the MFP methodology and associated disciples:


Major publicly listed retail group ( 200 plus stores)

This group embraced MFP and the disciplines some 18 months ago. The management and buying teams introduced changes to their information system that allowed all levels of the buying and management team to quickly facilitate improved interpretation of data gathered on the retail key performance indicators. The GM stated that this enabled them to look" outside of the square" across the business. MFP and the associated disciplines have resulted in improved gross profit margins, increased stock turn, improved stock management (increased sales on less stock required) and category focus. Buyers now have an acute understanding of how their actions impact on the well being of the company. They fully embraced MFP as a “living and breathing plan" that can bring about improved performance in their areas of responsibility. They can immediately “see" the outcomes from their buying decisions and inventory levels. The MD stated that "Tight inventory control enabled us to avoid the more aggressive discounting that took place leading up to Christmas, and this helped us increase our EBITDA margin to 11.6 per cent- a substaintial improvement on the 9.4 per cent margin in the first half...."

6 Store Unisex fashion group

This group started the MFP methodology in early 2000. The joint owner/buyer embraced the disciplines and drove the business increasing Gross Profit margins by 8% to sales, improved stock management and implementation of “a buying plan not a spending plan." The business was sold, after 30 years in the family, for several million dollars in late 2007. The other joint owner , a chartered accountant , has publicly stated “ that it was through the efforts of Ken Tickle and his retail methodology that we made more money in the 7 years we worked with him than any other period and it put us in a position that enable us to sell the business..."

18 store fashion group

The owner was a struggling four store business when introduced to Ken Tickle. Over the last 9 years this business has grown to 18 stores and is now in the top three retailers within the shopping centres fashion category in which they operate. The owner has fully engaged with MFP and now has the ability to interpret and implement data gathered from his management information systems. MFP has empowered the buying team to go into the market with a clear financial buying plan. Their culture is such that all members of the executive team sit through the monthly MFP review where issues are quickly identified in the KPI's and actioned immediately. Gross profit levels have lifted significantly to sales in this 9 year period. Stock turn is one of the highest in the industry. This has been achieved through the MFP buying planning process ingrained in the business. The owner and buying team now understands how to interpret financial and retail terminology and analyse the business ongoing.

6 Store international Jewellery group

The owners of the business embraced MFP 15 months ago. POS systems were “mined" for data and category structures implemented. The MFP process allowed the design team and owners to “see" that there was substantial improvement to be made in stock turn and profit margins. Within that 18 month time frame stock has been reduced by several hundred thousand dollars at cost and sales continue to exceed last year by double digit growth. The MFP disciplines have flowed onto the design area with product planning utmost in their mind and within the financial plans set by management. They fully understand that 80% of sales come from 20% of the stock. Basic items are now never out of stock.

5 Store Unisex fashion group

This group has been working with the MFP process for 3 years. Struggling to make a profit, gross profit margins have been lifted by 7% to sales turnover. Stock is well managed with a reduction being achieved without impacting on turnover. Category management is now first class in the business with resultant improvement in the ranging of product. For the first time the business is now paying its creditors in normal payment terms.

The owners have stated that they are still in business today due to the contribution of Ken Tickle.

Children's wear retail group

This group has embraced MFP with monthly review of all KPI's in the business. It has added confidence to the buying team with a focus on “less is more". Gross Profit has improved dramatically with less reliance on markdowns to clear wrong buys and over buys. The owners continue to manage the business at category level enabling quick proactive response to all retail KPI's.


The 6 : 1 : 5 Rule:

This rule demonstrates that you don't need to drive sales at the expense of margin. This is about working smarter in the business.

To double the net profit contribution of each store the retailer needs to achieve:

• A minimum of 6 % improvement in sales

• While achieving a minimum of 1 % in final achieved GP

• Addressing operating cost reduction of 5 %

The MFP program and retail inventory training manual will help facilitate these aims.