Cost merging/consolidation is the process of combining and streamlining operations, resources, and procurement across multiple retail entities to achieve cost savings and operational efficiencies. It involves merging various aspects such as purchasing, distribution, logistics, and administrative functions.
This strategy aims to reduce overall costs, increase profitability, and improve competitiveness. Cost merging/consolidation can lead to centralization of operations, standardization of processes, and the integration of technologies to enhance productivity and achieve cost synergies.
Ultimately, it allows retailers to allocate resources more effectively and deliver value to customers while remaining competitive in the marketplace.