Project Description
Wholesale reorganization and re-training of a retail merchandising and planning organization based on cutting edge merchandising practices.
The Client
A $3 billion nationally recognized, multi-channel (catalog, retail store, internet and B2B) retailer of softlines and hardlines products with a loyal customer base.
The Challenge
The merchandising organization was faced with declining margins, rising inventory and flat sales. The process was hindered by misalignment of inventory and planning functions with the merchandising counterparts and therefore, slow response to trends and opportunities.
The executive team wanted to improve the organization structure and processes to drive sales, margin and “big ideas.”
The Parker Avery Solution
The Parker Avery Group designed a merchant-centric organizational model and consolidated planning and inventory functions. As part of the retail merchandising transformation, Parker Avery also designed roles and role-based training to implement a more efficient and productive process.
The rollout included training more than 300 individuals to perform new jobs with more efficient and productive processes.
The processes designed and trained included:
- Category Strategy
- Assortment Planning
- Product Development
- Purchasing
- Price Management
- Allocation
- Replenishment
- Vendor Management
With Parker Avery’s help, over the course of 10 months the organization was completely transformed.
The Result
Results of the client’s merchandising transformation were recognized within the first 90 days. The client has experienced the following published benefits (most recent quarter):
- Revenue increase of 2.4% comps
- Margin increase of 250bps
- Inventory Turn improvement by 50bps
- Reduction in excess inventory by 15%
