Merchandising Transformation

Merchandising Transformation

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 with a loyal customer of softlines and hardlines product.


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 responsiveness 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

Merchandising Team

The Parker Avery Group designed a merchant-centric organizational model and consolidated planning and inventory functions. As part of the solution, PAG also designed roles and role-based training to implement a more efficient and productive process. The roll-out 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

Over the course of 10 months, the organization was transformed. Results were recognized within the first 90 days.


The Result

As a result of the PAG project, the client has experienced the following published benefits (most recent quarter),
- Revenue increase of 2.4% comps
- Margin increase 250 bps
- Inventory Turn improvement by 50 bps
- Reduction in excess inventory by 15%


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