Spend-less Shoes Case Study

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“OST delivered us one, fully integrated, end-to-end retail system that manages every aspect of retail operations ― from procurement right through to store sales. With full visibility, we understand our customers better, and everyone makes smarter decisions.”

Bruce Campbell, Chief Financial Officer, Spend-less Shoes.

Spend-less-Shoes OST case study

Retailer Profile

Founded in Adelaide in 1988, and approaching 200 national stores in 2015, Spend-less Shoes is an Australian retail icon, selling fashion footwear at highly competitive prices. To increase their 10 store per year expansion rate, executives wanted to unify merchandising and accounting systems, provide buyers with better stock data, and adapt faster to changing customer habits.

The Challenge

While other retailers were feeling the pinch of reduced customer spending, overseas competition and omni-channel pressures, Spend-less Shoes is determined to build on its past successes.

Previously, the company’s core legacy business system was manually intensive, and required a large amount of support and input from staff. Single store stock-take completion took four days. Single store delivery reporting took two days. Store sales ledgers were posted only monthly, and there were significant errors in distribution.

“We had come to the point where we had outgrown our old systems and required a platform which would set us up for the next 10 years of growth,” said Bruce Campbell, Chief Financial Officer, Spend-less Shoes.

In 2012, Spend-less Shoes rigorously analysed a selection of retail management solutions to manage its head office finance, warehousing, logistics, planning and allocation and point-of-sale (POS) operations.

The Solution

Spend-less Shoes chose OST as their trusted retail business consultant and solution provider, as they understand the consumer market trends, challenges and opportunites of fashion retailers.

OST delivered an end-to-end Retail solution built on Microsoft Dynamics AX with added capability specific to retail, for finance, assets, merchandising, warehousing, retail back office and point-of-sale (POS).

“OST’s Retail solution opens up endless opportunities in all areas of our business, including POS, multichannel management, store operations, merchandising and supply chain. Integrated on the one platform, we can now roll out new initiatives as required and as opportunities arise,” said Campbell.

The Impact

With the OST Retail system, merchandisers and store staff all work with up-to-date stock and sales data. Stock is managed more efficiently and customers get the shoes they want. “We can analyse product returns better, we have less unsold stock at the end of each season, and we have practically eliminated shrinkage,” said Campbell.

With full visibility over stock and finance, executives and managers have the data they need to react quickly. “We understand our customers better, and everyone makes smarter decisions, right across the business,” stated Campbell. “With a single version of the truth, we have eliminated manual data-transfer and reconciliation tasks, and we have excellent analytics that makes the business easier to manage.”

Merchandisers have full ‘size-by-style’ control and visibility and can proactively order stock in improved ratio packs, so the in-store stock matches customer size requirements across every location around the country. “Now, customers are more likely to find the shoes they want and fit first time,” said Campbell. “Our team members can also provide customers with a more informed service, because they have instant access to up-to-date stock information on their POS devices.”

In 2015, with a retail system that integrates with new technologies, OST is assisting the retailer to leverage their digital and mobile capabilities to provide more personalised customer experiences and connect with digital consumers as never before. “The OST Retail solution gives us the flexibility to link up our bricks and mortar business with our digital retail channels,” Campbell said. “Technology is sometimes a barrier to growth, but OST’s system is an enabler ― it will help us expand in Australia and internationally. We now have a solid platform for the next ten years of growth.”

“The OST Retail solution enables us to service our valued customers at the highest level across all our shopping channels. The system provides for the seamless delivery of an exciting and contemporary retail experience to each and every one of our customers that is both personal and enjoyable as we strive to consistently exceed their expectations.”

Bruce Campbell, Chief Financial Officer, Spend-less Shoes


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