Blue Yonder Case Studies On a Winning Streak

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	On a Winning Streak Blue Yonder

On a Winning Streak

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Retail
Applicable Functions	Sales & Marketing Warehouse & Inventory Management
Use Cases	Inventory Management Warehouse Automation
Challenge	Hibbett Sports, a sporting goods retailer, has grown from a single store in Birmingham, Alabama, to more than 890 stores across the U.S. The company sells sports equipment and apparel from brand leaders such as Nike, Under Armour, adidas, The North Face, and Oakley, as well as fan apparel for college and professional teams that is specific to its local markets. With an average store size of approximately 5,000 square feet, it is critical for the retailer to target its merchandise very carefully to ensure that consumers in every market will find exactly what they’re looking for. To support this localized market strategy, Hibbett Sports has relied on JDA Software’s Retail Planning solution since 2006. As the company expanded into new regions, it realized there were some new challenges it needed to address. The company wanted to gain a better understanding of its regional selling seasons, as well as the differences in merchandise seasonality, in order to move products in and out of the stores quicker. Read More
About Customer	Hibbett Sports is a sporting goods retailer that has grown from a single store in Birmingham, Alabama, to more than 890 stores across the U.S. The company sells sports equipment and apparel from brand leaders such as Nike, Under Armour, adidas, The North Face, and Oakley, as well as fan apparel for college and professional teams that is specific to its local markets. With an average store size of approximately 5,000 square feet, it is critical for the retailer to target its merchandise very carefully to ensure that consumers in every market will find exactly what they’re looking for. As the company expanded into new regions, it realized there were some new challenges it needed to address. The company wanted to gain a better understanding of its regional selling seasons, as well as the differences in merchandise seasonality, in order to move products in and out of the stores quicker. Read More
Solution	Hibbett Sports implemented JDA Markdown Optimization to improve its ability to anticipate changing seasons in different areas of the U.S. and price its products for optimal movement and margin protection. The solution is helping the retailer be much more efficient in its markdowns. As part of its price-zone level pricing strategy, the retailer has taken its store footprint in 31 states and segmented it into four groups. Buyers can now take different price actions in these four areas of the country, whereas in the past the company had one pricing strategy for the whole country. Hibbett Sports is also able to respond appropriately to local demand surges or drops when popular teams are winning and losing during the selling season. The solution has also greatly enhanced the productivity of the Hibbett Sports purchasing team. The solution has also enabled Hibbett Sports to test and verify its pricing plans, proving the sustainability of its expansion strategy. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Retail

Applicable Functions

Sales & Marketing

Warehouse & Inventory Management

Use Cases

Inventory Management

Warehouse Automation

Challenge

Hibbett Sports, a sporting goods retailer, has grown from a single store in Birmingham, Alabama, to more than 890 stores across the U.S. The company sells sports equipment and apparel from brand leaders such as Nike, Under Armour, adidas, The North Face, and Oakley, as well as fan apparel for college and professional teams that is specific to its local markets. With an average store size of approximately 5,000 square feet, it is critical for the retailer to target its merchandise very carefully to ensure that consumers in every market will find exactly what they’re looking for. To support this localized market strategy, Hibbett Sports has relied on JDA Software’s Retail Planning solution since 2006. As the company expanded into new regions, it realized there were some new challenges it needed to address. The company wanted to gain a better understanding of its regional selling seasons, as well as the differences in merchandise seasonality, in order to move products in and out of the stores quicker.

About Customer

Hibbett Sports is a sporting goods retailer that has grown from a single store in Birmingham, Alabama, to more than 890 stores across the U.S. The company sells sports equipment and apparel from brand leaders such as Nike, Under Armour, adidas, The North Face, and Oakley, as well as fan apparel for college and professional teams that is specific to its local markets. With an average store size of approximately 5,000 square feet, it is critical for the retailer to target its merchandise very carefully to ensure that consumers in every market will find exactly what they’re looking for. As the company expanded into new regions, it realized there were some new challenges it needed to address. The company wanted to gain a better understanding of its regional selling seasons, as well as the differences in merchandise seasonality, in order to move products in and out of the stores quicker.

Solution

Hibbett Sports implemented JDA Markdown Optimization to improve its ability to anticipate changing seasons in different areas of the U.S. and price its products for optimal movement and margin protection. The solution is helping the retailer be much more efficient in its markdowns. As part of its price-zone level pricing strategy, the retailer has taken its store footprint in 31 states and segmented it into four groups. Buyers can now take different price actions in these four areas of the country, whereas in the past the company had one pricing strategy for the whole country. Hibbett Sports is also able to respond appropriately to local demand surges or drops when popular teams are winning and losing during the selling season. The solution has also greatly enhanced the productivity of the Hibbett Sports purchasing team. The solution has also enabled Hibbett Sports to test and verify its pricing plans, proving the sustainability of its expansion strategy.

Impact #1	Increased quarterly sales by 25 percent, year over year, during the JDA Markdown Optimization pilot.
Impact #2	Improved inventory turns by almost 21 percent during the pilot.
Impact #3	Grew gross margin ROI by more than 25 percent during the pilot.

Impact #1

Increased quarterly sales by 25 percent, year over year, during the JDA Markdown Optimization pilot.

Impact #2

Improved inventory turns by almost 21 percent during the pilot.

Impact #3

Grew gross margin ROI by more than 25 percent during the pilot.

Benefit #1	Sales improvement of 25 percent over last year in 20 product subclasses.
Benefit #2	Inventory turn improvement of almost 21 percent.
Benefit #3	Gross Margin Return on Investment improvement of more than 25 percent.

Benefit #1

Sales improvement of 25 percent over last year in 20 product subclasses.

Benefit #2

Inventory turn improvement of almost 21 percent.

Benefit #3

Gross Margin Return on Investment improvement of more than 25 percent.

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Overview

On a Winning Streak

Operational Impact

Quantitative Benefit