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Total sales up 8 percent, but are the stores healthy?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
An illustrative grocery chain had 100 stores and sales of EUR 500 million last year. This year it has 110 stores and sales of EUR 540 million. The 10 new stores sold EUR 45 million. What is total growth, and what is like-for-like growth?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Split total growth into new stores and existing stores
- Total growth = this year versus last year, all stores
- LFL growth = existing stores only
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Total growth
What a strong candidate does: From 500 to 540.
Total sales growth (percent): (540 - 500) ÷ 500 × 100 = 8
Step 2: Sales of existing stores
What a strong candidate does: Remove the new stores.
Existing store sales (EUR millions): 540 - 45 = 495
Step 3: Like-for-like growth
What a strong candidate does: Existing stores this year against the same stores last year.
LFL growth (percent): (495 - 500) ÷ 500 × 100 = -1
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The chain should not treat 8 percent growth as healthy, because its existing stores shrank 1 percent like for like, from EUR 500 million to EUR 495 million. First, the 10 new stores added EUR 45 million, which hides the decline. Second, opening stores cannot go on forever, so the chain must fix the base. The risk is that new stores are taking sales from nearby existing ones. As a next step, split like-for-like sales into transactions and basket size to see which fell.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.