Blue Yonder > Case Studies > On a Winning Streak

On a Winning Streak

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Company Size
1,000+
Region
  • America
Country
  • United States
Product
  • JDA Advanced Store Replenishment
  • JDA Advanced Warehouse Replenishment
  • JDA Allocation
  • JDA Assortment Planning
  • JDA Channel Clustering
  • JDA Demand
  • JDA Enterprise Planning
  • JDA Markdown Optimization
  • JDA Merchandise Management System
  • JDA Performance Analysis
  • JDA Merchandise Performance Analysis
  • JDA Size Scaling
Tech Stack
  • Retail Planning solution
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Productivity Improvements
  • Revenue Growth
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
About The 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.
The 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.
The 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.
Operational Impact
  • Increased quarterly sales by 25 percent, year over year, during the JDA Markdown Optimization pilot.
  • Improved inventory turns by almost 21 percent during the pilot.
  • Grew gross margin ROI by more than 25 percent during the pilot.
  • Enhanced productivity of buying team.
Quantitative Benefit
  • Sales improvement of 25 percent over last year in 20 product subclasses.
  • Inventory turn improvement of almost 21 percent.
  • Gross Margin Return on Investment improvement of more than 25 percent.

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