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Optimization of sales in fashion retail by warehouse integration in multichannels

Ek, Malin LU and Karlsson Streijffert, Amanda (2015) In Master Thesis in Technology Management FEKP02 20151
Department of Business Administration
Lund University School of Economics and Management, LUSEM
Abstract
Issue of study:
The thesis studies the optimization of sales in fashion retail by integrating multichannels. The multichannel integration relates to reallocation of articles between brick and mortar store warehouses and online warehouses.

Purpose:
The purpose of the thesis is to investigate how increased multichannel integration, in terms of reallocating articles between online store warehouses and brick and mortar store warehouses, affect sales for retailers within the fashion industry. The thesis investigates the potential in increasing the sales by increasing the availability online and by decreasing the share of reductions in price, by reallocating articles to the most suitable channel.

Method:
The research was... (More)
Issue of study:
The thesis studies the optimization of sales in fashion retail by integrating multichannels. The multichannel integration relates to reallocation of articles between brick and mortar store warehouses and online warehouses.

Purpose:
The purpose of the thesis is to investigate how increased multichannel integration, in terms of reallocating articles between online store warehouses and brick and mortar store warehouses, affect sales for retailers within the fashion industry. The thesis investigates the potential in increasing the sales by increasing the availability online and by decreasing the share of reductions in price, by reallocating articles to the most suitable channel.

Method:
The research was conducted as an embedded single case study with one subunit studying the effects of increasing availability online and the other subunit studying the effects of decreasing price reductions. Data was gathered from four main sources: archival records, documentation, interviews, and observations. The analysis was performed by estimating sales figures if the reallocations had not been performed and compare it to the sales figures after the reallocations.

Conclusions:
By reallocating articles to the online warehouse, the sales on the reallocated articles increased on average by 67 percent, and had the potential of contributing to an overall increase of 1.2 percent. The sales potential can be further increased by a larger share of the additional store stock a larger share of comparable articles between the channels. The reallocation with the purpose of reducing price reductions contributed to a decrease of 19 percent of the reallocated articles, and an overall decrease in the total price reductions in the online store by 0.4 percent. Reallocating articles between channels with the purpose of reducing price reductions is considered to be less risky in terms of the likelihood of sending the wrong article, than the reallocation purpose of increasing sales, which can be explained by the impact of the short life cycles of the articles in fashion retail and thus the impact of timing. (Less)
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author
Ek, Malin LU and Karlsson Streijffert, Amanda
supervisor
organization
course
FEKP02 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Multichannel integration, Availability, Warehouse Management, Fashion Retail, Customer Satisfaction, Optimization of sales, Reductions, Deletions, Best value supply chains: agility, adaptability, alignment
publication/series
Master Thesis in Technology Management
report number
293
ISSN
1651-0100
language
English
id
5463361
date added to LUP
2015-08-12 10:57:15
date last changed
2015-08-12 10:57:15
@misc{5463361,
  abstract     = {Issue of study: 	
The thesis studies the optimization of sales in fashion retail by integrating multichannels. The multichannel integration relates to reallocation of articles between brick and mortar store warehouses and online warehouses. 

Purpose:	
The purpose of the thesis is to investigate how increased multichannel integration, in terms of reallocating articles between online store warehouses and brick and mortar store warehouses, affect sales for retailers within the fashion industry. The thesis investigates the potential in increasing the sales by increasing the availability online and by decreasing the share of reductions in price, by reallocating articles to the most suitable channel. 

Method: 	
The research was conducted as an embedded single case study with one subunit studying the effects of increasing availability online and the other subunit studying the effects of decreasing price reductions. Data was gathered from four main sources: archival records, documentation, interviews, and observations. The analysis was performed by estimating sales figures if the reallocations had not been performed and compare it to the sales figures after the reallocations. 

Conclusions: 	
By reallocating articles to the online warehouse, the sales on the reallocated articles increased on average by 67 percent, and had the potential of contributing to an overall increase of 1.2 percent. The sales potential can be further increased by a larger share of the additional store stock a larger share of comparable articles between the channels. The reallocation with the purpose of reducing price reductions contributed to a decrease of 19 percent of the reallocated articles, and an overall decrease in the total price reductions in the online store by 0.4 percent. Reallocating articles between channels with the purpose of reducing price reductions is considered to be less risky in terms of the likelihood of sending the wrong article, than the reallocation purpose of increasing sales, which can be explained by the impact of the short life cycles of the articles in fashion retail and thus the impact of timing.},
  author       = {Ek, Malin and Karlsson Streijffert, Amanda},
  issn         = {1651-0100},
  keyword      = {Multichannel integration,Availability,Warehouse Management,Fashion Retail,Customer Satisfaction,Optimization of sales,Reductions,Deletions,Best value supply chains: agility,adaptability,alignment},
  language     = {eng},
  note         = {Student Paper},
  series       = {Master Thesis in Technology Management},
  title        = {Optimization of sales in fashion retail by warehouse integration in multichannels},
  year         = {2015},
}