Holt Renfrew Case
Analysis:Nausherwan Saleem (11020035)
Rukunuddin Aslam (11020163)
1) Company Profile:
a. High-end retailer in Canada with ten stores in seven Canadian cities b. Sells top quality, branded and private-label designer fashions as well as cosmetics c. Owned by the Wittington Group headed by Galen Weston
d. Peak sales occurred in March/April, July/August and November/December e. Publicity campaigns used throughout the year for promotional purposes f. 21,500 orders a year at the company’s flagship store on Bloor Street, Toronto g. 1000 suppliers approximately used in a year out of a total of 3000 h.500,000 SKUs out of which 50% were active at any given time i. New introductions accounted for 40 to 50% of SKUs ordered
2) The Logistics Function at Holt Renfrew:
a. Primary Distribution Center (DC)
i. A primary 80,000 square-foot Distribution Center (DC) in Mississauga,Ontario where all merchandise ordered by Holt Renfrew’s buyers was shipped. ii. The DC was designed as a flow-through warehouse. All merchandise coming in has to be processed immediately and subsequently, shipped to the stores. iii. Primary activities in the DC were lot picking, ticketing and tagging merchandise. iv. 55 hourly, full-time staff worked at the DC over two shifts. v. DC received on average about 40$ million of inventory every month (136,000 cartons and 32,000 sets of hanging merchandise every year). vi. 3.3 million units of merchandise shipped from DC to stores every year.
b. Secondary Warehouse
i. A secondary 60,000 square-foot facility was also located in Mississauga ii. This held inventory that was not sold in the stores and which was subsequently sent to the Last Call, the stores located in Winnipeg and Toronto where they were sold at a substantial discount. iii. If the merchandise was not sold at the Last Call, it was returned by the stores to this secondary warehouse and kept there until disposed. Currently, there was $1 million of such...
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