Dive Brief:
- Sportsman’s Warehouse recently developed a merchandising assortment and planning software system with supply chain solutions software company Blue Yonder to strengthen its inventory management strategy, CEO Paul Stone said in an April 3 earnings call.
- Since implementing the tool, the retailer has improved its inventory management capabilities, store planogramming, seasonal regional auto replenishment and improved in-stock and productivity reporting, Stone said.
- The tech will offer “key” tools for merchants as the company looks to be “more in tune” with inventory trends, Riley Timmer, VP of investor relations, told analysts during the call.
Dive Insight:
The retailer has been focusing on its inventory management strategy as it looks to reduce stock levels. The partnership with Blue Yonder is part of that plan as it aims to put Sportsman’s Warehouse in a better position regarding product assortment and inventory allocation, Timmer said.
“While we made good progress during the fourth quarter, we will continue to closely manage our inventory levels and merch mix,” Stone said. “This will ensure we have the right products in the right location at the right time, creating inventory efficiency which allows us to better service our customers and improve our overall merchandise productivity.”
As part of those efforts, Sportsman’s Warehouse also made significant SKU cuts in Q4 and refined product assortments to improve inventory productivity.
Stone also noted that the Blue Yonder technology will help facilitate the expansion of the company’s omnichannel capabilities.
Sportsman’s Warehouse is eyeing further optimization through other tech investments, including a workforce management software, Stone added.
“This tool will allow us to officially staff our stores and be closer aligned with the peak hours of customer business,” the CEO said. The retailer did not further elaborate on the investment and did not immediately respond to a request for comment.
Retailers have been looking to tame their stock levels following 2022’s inventory tidal wave. Many companies worked to trim inventory levels and increase their demand planning capabilities last year as a way to enhance efficiency, unclutter facilities and lower costs.
Retailers finally saw the fruits of their labor in the second half of last year — Q3 2023 was the first time since the pandemic that retail and apparel growth outpaced inventory. That quarter, inventories across retail sectors were nearly 8% lower year over year.