Nicolas improves on-shelf availability and overall profit margins

Nicolas, the French wine retailer, has improved on-shelf availability by 30% and boosted overall profit margins by 1.2% following the implementation of the demand forecasting and replenishment planning modules of TXTDemand, part of the TXTPerform supply chain management suite through TXT e-solutions.

Since starting out in 1882, Nicolas has become the largest wine retailer in France, with an annual turnover of 250 million, 430 stores in France and an international presence particularly strong in the United Kingdom, with 80 stores. Its a renowned destination for expert advice and premier wines with a selection of over 1200 wines from around the world.

The retailers 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 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 many benefits that are driving value into the organisation. Improved visibility of demand has meant store managers are accepting 80% of TXTDemands 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.

TXTs 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 TXTs 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 managements 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 groups bottom line after only 12 months has been a fantastic output of the work done so far, says Mr Christian Fouasse, CIO, Nicolas.

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