RPM Retail Takes Toyworld to “Infinity and Beyond”!
One of the major challenges for our business was obtaining useful data from a variety of Point-of-Sale (POS) systems. Establishing a centralised, networked system came at a high price, both to build and maintain. No matter how we cut it, the investment required put it out of reach.
RPM Retail gave us the ability to leverage our investment in our existing POS systems while giving us aggregated performance results and powerful insights. Prior to implementing RPM Retail our review meetings were full of guesswork and lacked hard data to support decisions about categories and products. There is nothing like a set of facts to spoil a good argument!
Shortly after implementing RPM Retail across our stores and head office, we engaged the support of our supplier partners. This not only helped to subsidise the investment in RPM Retail, but also gave suppliers a tool to reduce out-of-stocks, reduce the volume of dead stock, and support the drive for stronger gross margins.
The age-old retail adage “if you can’t measure, you can’t manage” certainly applied to our group. Since implementing RPM Retail we have seen a focus on our key performance indicators. All stores are well versed on what these are and there is a competition to get to the top of the RPM Retail scoreboard.
Since implementing RPM Retail our gross margin has improved +4%, the proportion of dead stock at each store has fallen by -$20K and the frequency of out-of-stocks on best-sellers has fallen dramatically. Implementing RPM Retail has been a key strategic initiative contributing to our success over the past two years in spite of a tough retailing climate.
Information is power, being able to measure not only sales, but all the KPI’s to the business has taken us light years ahead and, in the immortal words of Buzz Lightyear, “to infinity & beyond”.
- Geoff Moth, Operations Manager, Toyworld New Zealand