Sportsman’s Warehouse has taken a significant step in refining its inventory management by collaborating with Blue Yonder, a leader in supply chain software solutions. CEO Paul Stone highlighted the development of a new merchandising assortment and planning software system during an earnings call on April 3. This strategic move has already yielded improvements in inventory management capabilities, store planogramming, seasonal regional auto replenishment, and in-stock and productivity reporting.
Strategic Inventory Trends Alignment
The new technology is set to provide essential tools for merchants, aiming to align more closely with evolving inventory trends, according to Riley Timmer, VP of investor relations. Sportsman’s Warehouse is honing its focus on inventory management to reduce stock levels and enhance product assortment and allocation. This initiative is crucial for positioning the retailer to ensure products are available where and when they are needed, thereby increasing inventory efficiency and customer service.
Inventory Productivity and Omnichannel Expansion
In the fourth quarter, Sportsman’s Warehouse made significant SKU reductions and refined product assortments, which are part of the broader strategy to improve inventory productivity. The Blue Yonder system also supports the expansion of omnichannel capabilities, a key area of growth for the retailer. Further technological investments, such as workforce management software, are on the horizon to optimize staffing in alignment with customer traffic patterns.
Industry-Wide Inventory Management Shift
The retail sector has been actively working to manage inventory levels more effectively since the challenges of 2022. Many retailers have focused on enhancing demand planning to improve efficiency, declutter facilities, and reduce costs. The efforts have started to pay off, with the second half of the previous year showing retail and apparel growth surpassing inventory levels for the first time since the pandemic, marking a nearly 8% year-over-year inventory reduction across retail sectors.
