Fashion and Seasonal Retailing: Unlocking Opportunities to Improve Gross Margins and Reduce Inventory Risk

Virtually all fashion and seasonal retailers inevitably end their fiscal years feeling that no matter how successful they were, they left money on the table. Certainly, the degree to which a retailer's assortment resonates with the consumer is a key driver of earnings. However, retailers can reduce the impact of missing ever-changing consumer tastes by very clearly differentiating their merchandising assortment strategy and ensuring goods are presented effectively in their stores.

After much hype, new technologies for key functions such as markdown pricing, assortment and merchandise planning, and allocation have matured. As a result, retailers have significant opportunities to generate higher margins and comparable-store sales and reduce inventory risk. Despite these advancements, retailers cannot expect to simply buy a new system and receive improved process and earnings as a "gift with purchase". Given trend-right assortments, retailers can boost gross margins by:

• Applying best-practice processes in merchandise and assortment planning, allocation, replenishment and markdowns
• Designing organization roles to support these new processes
• Creating cross-functional teams to improve processes and align their activities through key performance metrics
• Leveraging existing software tools and available analytics to measure performance
• Purchasing advanced analytical and planning software to improve decision making and cross-functional collaboration

Some retailers believe it is impossible to boost in-stock rates, inventory turnover and gross margin at the same time. Karabus Management has the extensive experience to make the dream of achieving simultaneous improvement a reality.

Most other consulting firms rely on new information systems to improve performance. In contrast, Karabus Management focuses on designing and executing the operational changes needed to increase gross margins - not just new technology. We treat technology as just a key enabler. We do not allow "the tail to wag the dog." We are the only retail consulting firm with deep expertise in the entire range of functions that can boost merchandise gross margins.