Nicolas improves on shelf availability improved by 30 per cent
Nicolas, the French wine retailer, has improved on-shelf availability by 30 per cent and boosted overall profit margins by 1.2 per cent.
The retailer’s goal was to streamline replenishment and forecasting processes, both in the store, and in the central distribution centre in France that serves the entire group. Nicolas decided to implement TXTDEMAND from TXT e-solutions in two stages: part one of the project targeted product range optimisation through more accurate replenishment planning for improved margins and on-shelf availability. Stage two enabled Nicolas to improve demand forecasting at its central distribution centre through the integration of point of sale, trends and seasonality data for a more demand-driven process and streamlined procurement.
Since going live, Nicolas has seen improved visibility of demand meaning store managers are accepting 80% of TXTDEMAND’s replenishment proposals made by head office (the solution makes replenishment proposals to the store managers between one and three times a week). Nicolas has been able to increase on-shelf availability from 65% to 95% on its “best” (never out of stock) products, which are important drivers for increasing foot traffic in store and delivering higher margins.
“TXT’s experience of implementing flexible and easy-to-use demand forecasting and replenishment solutions for retail meant we were confident in being able to provide Nicolas with the right tool for their requirements. This project further demonstrates TXT’s commitment to the retail sector and we are pleased to see the benefits Nicolas has achieved since going live,” says Gilles Alais, TXT e-solutions France, Sales Director.
“Nicolas is delighted with the partnership we have formed with TXT e-solutions. TXTDEMAND has supported our senior management’s commitment to re-define our processes by enabling us to have the right products on shelf with optimal margins. The solution has proven the value of centralised forecasting and replenishment processes in the eye of our store managers. The 30% jump in the on-shelf availability of our “best” products in store along with an overall 1.2% improvement of the group’s bottom line after only 12 months has been a fantastic output of the work done so far,” says Mr Christian Fouasse, CIO, Nicolas.
