Retail & Consumer Goods Cases: Industry Interview Guide

Retail and consumer goods cases test whether you can think like an operator — not just a strategist. Based on our analysis of 800+ consulting interview cases, this industry appears in roughly 20% of first-round interviews at MBB and Big Four firms, making it one of the most frequently tested sectors alongside financial services and technology.

Why Interviewers Love Retail Cases

Retail is concrete. Every candidate has been a consumer, which means interviewers can quickly assess whether you move beyond surface-level observations into structural analysis. The real differentiator is demonstrating that you understand the unit economics driving retail businesses rather than just describing trends you’ve read in the news.

Three characteristics make retail cases distinct from other industries:

The Five Retail Case Archetypes

Based on our experience coaching candidates, retail and consumer goods cases cluster into five recurring patterns. Recognizing which archetype you’re facing within the first two minutes lets you deploy a targeted framework rather than a generic one.

flowchart TD
    A[Retail Case Prompt] --> B{What's the core issue?}
    B -->|Revenue declining| C[Store Performance / Traffic]
    B -->|Margins shrinking| D[Pricing & Promotion Mix]
    B -->|New market/channel| E[Market Entry / Expansion]
    B -->|Cost pressure| F[Supply Chain & Operations]
    B -->|Portfolio question| G[Brand / Category Strategy]
    C --> H[Decompose: Traffic × Conversion × Basket]
    D --> I[Analyze: Promo depth, frequency, cannibalization]
    E --> J[Assess: Market sizing + channel economics]
    F --> K[Map: End-to-end cost drivers]
    G --> L[Evaluate: Growth vs. margin contribution]

Archetype 1: Store Performance Decline

The most common retail case type. You’ll hear prompts like “same-store sales have declined 8% over two years” or “our client’s flagship stores are underperforming.”

Key decomposition: Revenue = Traffic × Conversion Rate × Average Basket Size × Purchase Frequency

Metrics to request: Same-store sales (comp sales), revenue per square foot, footfall trends, conversion rate by daypart, basket composition changes.

Archetype 2: Pricing and Promotional Strategy

CPG and grocery cases often center on promotional effectiveness. A typical prompt: “The client spends 25% of revenue on promotions but isn’t sure they’re driving incremental volume.”

Key decomposition: Promotional ROI = Incremental Volume × (Margin per Unit − Promo Cost per Unit) − Cannibalization Effect

Watch for: Forward buying (consumers stockpiling during promos), brand switching vs. category expansion, and the “promo trap” where baseline sales erode over time.

Archetype 3: Market Entry or Channel Expansion

E-commerce entry, international expansion, or new format launches (dark stores, pop-ups). The framework here blends market entry analysis with retail-specific channel economics.

Key question: What’s the incremental margin after accounting for cannibalization of existing channels?

Archetype 4: Supply Chain and Operations

Inventory optimization, last-mile delivery economics, or sourcing strategy. These cases test quantitative reasoning more heavily — expect to calculate holding costs, stockout rates, or delivery cost per order.

Key decomposition: Total Supply Chain Cost = Procurement + Warehousing + Transportation + Last-Mile + Returns

Archetype 5: Brand and Category Management

Portfolio rationalization, private label strategy, or category captain decisions. Common in CPG-focused cases where the client is a manufacturer selling through retail partners.

Key question: Which brands/SKUs create disproportionate complexity relative to their margin contribution?

Essential Metrics You Must Know

Walking into a retail case without these metrics immediately signals inexperience. In our experience working with successful candidates, the top performers reference 3-4 of these metrics unprompted within the first five minutes.

Structuring Your Approach: A Retail-Specific Framework

Generic profitability frameworks miss retail-specific dynamics. Here’s how to adapt your structure based on the case archetype:

mindmap
  root((Retail Profitability))
    Revenue Drivers
      Traffic / Footfall
        Location quality
        Marketing effectiveness
        Cannibalization from own stores
      Conversion
        Assortment relevance
        In-stock rate
        Staff capability
      Basket Size
        Cross-sell effectiveness
        Pricing architecture
        Bundle / promo strategy
    Cost Drivers
      COGS / Procurement
        Supplier negotiation
        Private label mix
        Shrinkage / waste
      Store Operations
        Labor scheduling
        Rent / occupancy
        Utilities
      Supply Chain
        Warehouse efficiency
        Transportation
        Last-mile delivery
    Channel Mix
      Physical stores
      E-commerce (own)
      Marketplace (3P)
      Wholesale / B2B

Sample Drill: Grocery Chain Profitability

Prompt: “Your client is a mid-size grocery chain with 200 stores. Profit margins have dropped from 4.2% to 2.8% over three years despite revenue growing 6% annually. What’s going on?”

Strong opening: “Revenue is growing but margins are compressing — that tells me the issue is likely cost-driven or mix-driven rather than a demand problem. I’d like to decompose the margin decline into three buckets: gross margin changes (COGS pressure or promotional depth), operating cost increases (labor, rent, logistics), and channel mix shifts (if online is growing faster but at lower margins). Can I start by asking about the gross margin trend?”

This opening demonstrates:

1. You immediately identified the revenue-vs-margin disconnect
2. You proposed a structured decomposition
3. You prioritized where to dig first
4. You asked a targeted question rather than requesting “more information”

Common Mistakes in Retail Cases

Based on our analysis of candidate performance across 200+ mock interviews:

1. Treating retail as simple: Candidates assume “everyone understands retail” and skip industry-specific analysis. The interviewer expects you to go deeper than general business intuition.
2. Ignoring the competitive context: Retail is intensely competitive. A declining client may be losing share to a specific competitor — always ask about relative performance.
3. Overlooking the physical constraint: Unlike tech companies, retailers face real estate constraints, lease terms, and location-specific dynamics that limit strategic flexibility.
4. Applying manufacturing logic to retail: Retailers don’t “produce” — they curate, merchandise, and move inventory. Efficiency here means speed and relevance, not production optimization.

Preparing for Retail Cases: A Focused Plan

Key Takeaways

• Retail cases appear in approximately 20% of consulting first-round interviews — expect at least one during your process
• Decompose store performance into Traffic × Conversion × Basket Size before reaching for generic frameworks
• The five archetypes (store performance, pricing, market entry, supply chain, brand management) cover 90%+ of retail cases you’ll encounter
• Demonstrate industry fluency by referencing specific metrics (same-store sales, revenue per sq ft, inventory turnover) unprompted
• Channel mix dynamics and cannibalization effects are the most commonly missed analytical dimensions
• Physical constraints (real estate, logistics, inventory) differentiate retail strategy from other industries

Ready to practice? Browse our retail industry cases for real interview scenarios, or test your skills with an AI Mock Interview that simulates consulting case discussions in real time.