How AI-driven inventory optimization streamlined retail inventory for a major shoe retailer

Background

A leading European shoe retailer sought to enhance its operational efficiency and boost sales revenue for its core offering of shoes and diverse range of bags and accessories. With a large brick-and-mortar store network and over 90 e-commerce platforms, the company had a strong presence but faced significant operational complexity in its supply chain and inventory management system.

Challenge 

The shoe retailer heavily relied on manual inventory management systems, as no existing tool could meet its complex business needs. However, this labor-intensive and inflexible approach led to lost sales due to poor product availability, causing a direct increase in gross sales and income generated. When managing store replenishment and inventory transfers, the retailer struggled with shipment constraints, package prioritization and balancing costs of goods sold with sorter capacity.

These challenges drove the retailer to seek an advanced, customized solution that would improve effective inventory management, enhance sales forecasting and decrease lost sales. Additionally, the company aimed to improve workforce efficiency through automated store replenishment and inter-store transfer procedures, ultimately optimizing its working capital.

Solution

Both solutions were deployed within six months, and the retailer achieved immediate improvements. AI-driven streamlined inventory management enhanced on-shelf availability by 8.8%, resulting in an 11.95% reduction in lost sales and a boost in cash flow. Optimized transfers generated a 4% increase in additional sales rep unit ratio, contributing to total additional sales revenue of $21.4M. Furthermore, automated processes significantly improved workforce efficiency, enhancing the company’s bottom line.

By leveraging technology tailored to its unique operational landscape, the retailer completely transformed retail inventory management within a short timeframe—highlighting how intelligent automation and strategic collaboration can drive measurable success in the competitive retail industry.

Today, the leading shoe retailer continues to benefit from real-time solutions that evolve in sync with its needs and industry changes, ensuring ongoing success in managing its product line and sales data.