CFO Case Study: Improving Margin Control in a £60m Retail Business

CFO Case Study: Improving Margin Control in a £60m Retail Business

Introduction

Harper May supported a £60m retail business in appointing a CFO, following a period of steady revenue growth but declining margin performance.

While sales remained strong, profitability was gradually eroding beneath the surface.

This case study highlights how a strategic CFO appointment strengthened margin control, improved commercial decision-making, and embedded financial discipline across the business.

Challenges in Margin Control for a Mid-Market Retail Business

The business was performing well commercially, with consistent revenue growth and a stable operating model.

However, underlying financial performance told a different story:

• Margins were gradually declining across product categories and channels
• Cost increases were being absorbed without sufficient challenge
• Pricing decisions were not consistently aligned to margin targets
• Finance reporting existed, but lacked influence on commercial decisions

This is a common challenge in retail businesses, where sales performance can mask underlying profitability issues.

Over time, margin drift can significantly impact long-term performance if not actively managed.

How Harper May Assessed the CFO Requirement

Harper May was engaged to support a CFO recruitment process for a retail business, with a focus on strengthening financial leadership and commercial oversight.

Rather than focusing solely on reporting capability, we assessed:

• Margin performance across product, channel, and cost base
• The level of financial challenge applied to commercial decisions
• Ownership of pricing strategy and cost control
• The role of finance in strategic and operational decision-making

This identified a clear gap:

👉 The issue was not visibility of margin
👉 It was a lack of accountability and challenge at leadership level

How Harper May Delivered the CFO Appointment

Harper May leveraged its network of CFOs within retail and consumer businesses to identify candidates with experience in margin-driven environments.

The search focused on passive CFO talent with a strong track record in commercial finance leadership.

This included:

• Targeted outreach to CFOs with retail and multi-channel experience
• Benchmarking candidates against both financial and commercial leadership capability
• Assessing experience in pricing strategy, cost management, and trading performance
• Aligning candidates to the business’s scale and operational complexity

This approach ensured the appointed CFO could deliver immediate impact on margin performance and commercial discipline.

Strategic CFO Appointment in a Retail Business

The appointed CFO brought a clear focus on margin ownership and commercial accountability.

Key areas of impact included:

• Establishing clear ownership of margin across product and sales channels
• Strengthening pricing strategy and alignment to profitability targets
• Introducing greater scrutiny over cost base and operational performance
• Embedding finance into day-to-day commercial decision-making

This reflects the evolving role of a retail CFO, where financial leadership is closely tied to trading performance and profitability.

Results: Stabilising Margin and Strengthening Commercial Performance

Following the appointment:

• Margin performance stabilised across key areas of the business
• Pricing and cost decisions became more aligned to profitability targets
• Financial accountability improved across commercial and operational teams
• Decision-making became more structured and data-driven

The business moved from revenue-led growth to profitability-led performance.

Rethinking CFO Recruitment in Retail Businesses

This case highlights a key point:

Strong sales do not guarantee strong profitability.

In many retail businesses, margin erosion occurs gradually — often without clear ownership or challenge at leadership level.

A strategic CFO appointment can address this by embedding financial discipline into commercial decision-making and ensuring margin performance is actively managed.

If your retail business is experiencing margin pressure or evaluating its finance leadership structure in London, Harper May supports both CFO recruitment and Finance Director recruitment across retail and consumer sectors.

To learn more, explore our Finance Recruitment services, and how we support organisations appointing senior finance leaders across London and the UK.