It’s a Christmas miracle! Dillard’s, the troubled clothing retailer, has pulled a complete 180, returning to profitability after a few years of losses and doubts about its survival. In 2009, the company lost $241 million, but in 2010 it enjoyed a profit of $69 million, according to the Fortune Magazine article “How Dillard’s did it.”
What’s behind this turnaround? Inventory tracking!
“Dillard’s began shearing stores that didn’t put up good sales numbers, tracking its inventory better and buying higher quality products, all before the recession,” the article notes. They wouldn’t be able to know which stores were unprofitable and which products to focus on unless they used inventory tracking software to get the data they needed.
What exactly did Dillard’s do to turn its business around? The article notes, “The company’s sales strategy had been ‘stack it high, let it fly,’ but the cheap and plentiful sales model was flabby… Dillard’s tried to move more towards a boutique feel, and position itself somewhere between Macy’s and Bloomingdales instead of competing with discount outlets such as Kohl’s.”
Why is this important? Because your company can benefit from following Dillard’s example and using inventory tracking software to improve your financial stability.
“All department stores will need to initiate changes like the ones that Dillard’s made, says [Bill] Dreher, [a research analyst with Deutsche Bank,] to transform and survive. ‘Department store retailing … [has] evolved into much more of a science based on hard facts.’”
You can use inventory tracking software to gain hard facts to help your retail store save money and grow. Learn more about inventory software to see how it can help your business.
And have a Merry Christmas!