Founded in 1969, The Original Factory Shop (TOFS) currently operates more than 200 stores around the UK with a store format that includes thousands of products in a full range of styles, sizes, and colors. To keep prices low, TOFS must rely on careful inventory management and strict margin control.
In late 2014, TOFS recognized that their legacy merchandise management system was constraining their business by hindering their ability to react to changing market conditions and implement new ideas. The retailer needed a solution that would not only support the volume and diversity of inventory, but also would allow TOFS to gain a new level of insight into daily and monthly business transactions. Most importantly, the retailer needed a merchandising solution that could be implemented in months versus years in order to minimize the risk of disruption to the business.
TOFS selected the Mi9 Retail merchandising and business intelligence solution, Mi9 Merchant, to replace the legacy infrastructure. Implementation began in early 2015. The new merchandising system went live in less than 8 months, in time for the 2015 holiday season. A year later, TOFS has realized an 8% improvement in gross margin on SKUs being managed by the new system. The company also has seen the number of store departments with Stock Cover greater than the optimal number of days decrease by 44%.
Today, the team has access to real-time dashboards and compelling data visualizations that make the information informative and actionable. TOFS is now able to calculate Net Sales Retail, Net Sales Cost, and Closing Inventory at Cost, all by Store, SKU, and Day. The company is measuring Gross Margin Return on Inventory, Gross Margin Return on Footage, and even Gross Margin Return on Labor.
Excerpted from the fifth annual Store Operations Superstar Awards, published by Retail TouchPoints.
Congratulations to Mi9 Retail customer, TOFS (The Original Factory Shop) for being selected as a winner of the 2016 Store Operations Superstar Awards.
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