The Secret to Higher Sell-Through
How a multi-brand retailer brought online data to offline retail
+13%
MoM Sales Increase
in Stores
-63%
Reduction in
Stock Turnover Time
+15%
Sell-Through Increase
+13%
MoM Sales Increase
in Stores
-63%
Reduction in
Stock Turnover Time
+15%
Sell-Through Increase
Background
FACTORY54 is the premier provider of luxury retail in Israel, offering a unique multi-brand concept for over 150 of the world’s leading brands. With hundreds of stores and brands such as Valentino, Burberry, and Giorgio Armani, Factory 54 has become synonymous with premium luxury fashion in Israel.
FACTORY54 is the premier provider of luxury retail in Israel, offering a unique multi-brand concept for over 150 of the world’s leading brands. With hundreds of stores and brands such as Valentino, Burberry, and Giorgio Armani, Factory 54 has become synonymous with premium luxury fashion in Israel.
The challenge: increasing in-store sales
In a time of growing competition and uncertain consumer spending, Factory 54 needed to understand the behavior of customers in their stores in order to create localized assortments that keep shoppers coming back for more.
The retailer wanted:
– More accurate store targets that take week-on-week fashion trends into account
– Data that reflects what’s happening in the store in days, not weeks
– Actionable ways to use that data to increase full-price sell-through
None of this could be done with the retailer’s historical sales and inventory data.
Factory 54 was using an RFID solution to increase inventory visibility and accuracy. While the solution gave them operational benefits, it didn’t significantly reduce store staff workload. The stock counts with manual scanners alone took hours of store associates’ time each week and shelf replenishment was still done manually by walking the store.
The retailer knew they were missing the full sales funnel of what happens between the time a customer walks into a store and the moment they walk out, with or without a purchase. This made it hard to pinpoint the products with the potential to drive more sales, or localize store inventory to have the right products in the right place.
The solution: Nexite's Connected Retail Platform
Factory 54 implemented Nexite’s Connected Retail platform in their stores to go beyond inventory efficiency and digitize their entire physical retail organization, helping them create more customer-centric merchandising tactics, better support store staff, and improve sales both in real time and in the planning stages with optimized assortment and allocation planning. Nexite’s NanoBT (Bluetooth) technology and AI-led platform revealed how customers were interacting with the items in the store – from the moment a customer walks in and picks a product up, to when they try it on, to checking out or walking out without making a purchase – data that sales reports just can’t provide.
Nexite’s Connected Merchandise solution calculated exactly where each style was ‘stuck’ along the sales funnel and provided automatic recommendations for on-shelf replenishment, transfers, promotions and displays that increased sell-through during the season. The new sales funnel data empowered the retailer to create better and more localized visual merchandising, buying and pricing strategies.
Factory54 also used Nexite’s Connected Operations and Connected Stores solutions to reduce overhead costs by eliminating excess stock, freed up store staff to focus on clienteling, and provided valuable business intelligence to decision-makers and planning roles across the organization. Having high inventory accuracy in real time – as well as accurate inventory forecasts for how much will be sold, and how quickly – made it easy for Factory 54 to know exactly which items needed to be transferred out, and to which store. The tight inventory count also gave the retailer the confidence to reduce safety stock in store and make more in-store stock available for sale online.
13% MoM sales increase in stores
with Nexite’s localized customer behavior insights
Using Nexite’s Connected Retail platform, the retailer reduced cases of excess stock and understocks by matching the right inventory to each store. The platform spotted when the store was at risk of missing potential sales and sent automatic replenish or transfer tasks to store staff in real time.
These and other automated recommendations from the platform, which prioritizes optimization that will have the highest potential impact on overall sales, helped the retailer achieve a 13% MoM increase in sales. Localizing assortments became easy with a bird’s eye view of the entire in-store sales funnel that told retailers what customers were really interested in, where.
3x SALES INCREASE
with optimized visual merchandising
Normally, Factory 54 staff choose items for mannequins and highlighted fixtures based on a mix of sales data and ‘gut feeling’. Nexite’s advanced machine learning algorithms translate merchandise performance within the store into a money map that displays the zones where items will sell best.
Using Nexite’s recommendations for mannequin displays, the retailer saw a 64% rise in sales on displayed items and a 3x sales increase compared to items put on display by the store staff.
Moving from RFID (and manual Tasks) to
complete automation with NanoBT
Nexite matched the inventory accuracy that the retailer had experienced with RFID. But automatically getting real-time inventory location took operational efficiency to a new level, with massively reduced gap investigation and receiving time and no need for manual stock counts.
Using the Connected Stores app, employees quickly and easily locate items in the store – down to the specific style, color and size – to speed up inventory tasks and give customers a frictionless, enjoyable experience.
Store employees were freed from the tasks they disliked, and had time to do what they loved: helping Factory 54’s customers find exactly what they were looking for.
By applying automation to real-time insights, Nexite’s solutions also helped Factory 54 increase sell-through with automatic alerts to the store teams to transfer out broken sizes, replenish popular styles on the sales floor, and improve visual merchandising performance per store.
