Following successful results from a pilot test, Raley’s is rolling out Itasca Magic, a computer-generated ordering and inventory optimization and direct-store delivery receiving solution from Itasca Retail Information Systems, to all of its nearly 130 store locations.
Raley’s officials said early results of the Itasca test resulted in a decrease of out-of-stocks, a reduction in excess inventory and, in turn, an increase in sales.
“Better management of inventory is of critical importance, providing better accuracy, less out-of-stocks and higher quality products,” Kevin Konkel, chief operating officer for the West Sacramento, Calif.-based retailer said in a statement. “Since implementing Itasca Magic, we have seen significant improvements in on-shelf availability, resulting in same-store sales increases and reductions in overall inventory in our early store implementations.”
Once the Itasca system is in place across all of its stores, Konkel expects Raley’s to “have the products our customers want and more, creating an even better shopping experience.”
Sophisticated algorithms, he noted, allow Raley’s to order the right quantity of the right products while accurately forecasting consumer demand and optimizing the replenishment and management of store-level inventory for all departments.
“Raley’s dedication and involvement with the pilot implementation has helped make this project a success on many levels,” Jeff Kennedy, president and CEO of the West Des Moines, Iowa-based Itasca, said in a release. “Combined with our machine learning technology, we anticipate Raley’s continued success as we expand to more stores and more product categories.”
Earlier this year, Buffalo, N.Y.-based Tops Friendly Markets implemented Itasca Magic’s computer-generated ordering, inventory optimization and direct-store delivery receiving solution to all of its 159 stores in New York, northern Pennsylvania and Vermont.