Groupe Dynamite is a Montréal-based fast-fashion retailer with two brands at the heart of its success, Garage and Dynamite. It operates more than 380 stores employing more than 5,500 people in Canada, the United States and the Middle East, plus an e-commerce site.
Groupe Dynamite needed to transform its manual processes for forecasting, allocation, and replenishment to meet growing business needs and support rapid growth as the brands expanded in American and international markets.
Unique challenges of fast fashion
Frequent seasons, localized assortments and regional size preferences meant Groupe Dynamite needed a solution that could support specific locational requirements.
Manual forecasting, allocation and replenishment processes could not scale
to align with business growth.
Rapidly changing trends
Groupe Dynamite established goals to to sell through its inventory in six to eight weeks, boost inventory flexibility, improve service levels, and automate processes where possible to free its internal resources to be more strategic.
Groupe Dynamite’s Retail Optimization Journey
Logility Allocation™ and Logility Merchandise Planning™ enable Groupe Dynamite to see the seasonality of each store in advance, predict trends, replenish inventory ahead of sales, and improve the size curves and efficiencies all during a time of rapid growth. “Our implementation of the Logility Retail Optimization solutions has enabled us to improve our sell through, reduce our markdowns and increase profitability as we position merchandise in the optimal location to delight our customers. We have become a more sophisticated organization and have automated nearly 80% of our store replenishments to meet our growing business needs,” says Isabelle Rousseau, allocation director of Groupe Dynamite. In addition to automating 80% of store replenishment, Groupe Dynamite has decreased initial merchandise distribution across its network of stores from 70% to 50%, giving the business greater flexibility and better margins.
Allocation and merchandise planning have helped Groupe Dynamite transform its forecasting and replenishment process. The company is now able to proactively plan based on a combination of historic data and real-time sales input to strategically place the right inventory in the right location at the right time.
With Logility, Groupe Dynamite is accelerating growth by maximizing sell through, boosting retail service levels and automating retail allocation and replenishment.
With Logility, Groupe Dynamite has increased auto-replenishment to 80% and decreased initial merchandise distribution from 70% to 50%, giving the business greater flexibility and better margins. It has also reduced size variance by at least 3% at the store level. As a more proactive versus reactive organization, it is now better able to predict trends and take advantage of replenishing inventory priorities based on individual store need.