Problem Solving

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 Case Introduction:
Save-A-Penny
Welcome on board the Save-A-Penny team. The CEO of Save-A-Penny, Mr. R, has a
Board meeting tomorrow and needs to answer to his Board: “What is the future of
Save-A-Penny’s nonfood division?”

About Save-A-Penny
 Save-A-Penny used to be the market leader within ‘double-supermarkets’, which
Value 4U has taken over.
— A double-supermarket is defined as dedicating 50% of the space on food and
50% of nonfood.
 The Board of Save-A-Penny has been impressed by recent profit improvements in
the food department
 Mr. R is under heavy pressure - a clear recommendation on key nonfood initiatives
would be expected by the Board

Your goal is to help Mr. R resolve his problem!

McKinsey & Company 2

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 Revenue (indexed)

100 99 99 99 98 98 97 97 96
Exhibit A:
Save-a-Penny
revenue

2012 13 14 15 16 17 18 19 2020

McKinsey & Company 3

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 Exhibit B:
Market share

Value 4U
CAGR +2%

CAGR -1%
Save-A-Penny

2012 13 14 15 16 17 18 19 2020

McKinsey & Company 4

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 Exhibit C:
Customer interviews
“Service is better at the competitors”

“I can never find the things I’m looking for”

“Signs are very confusing and prices

are often wrong”

McKinsey & Company 5

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