Page 14 - test peak booklet.indd

MERCHANDISE REPLENISHMENT – “PUSH VS. PULL”

What is it? During non-peak times, we can afford to be choosy about what items get selected to be pulled to the
floor based on size, colour, need for replenishment. During peak times, we simply need to flood the sales floor with all
available merchandise to keep pace with sales. While there is a need to be strategic with how, when and what to push,
replenishment sense of urgency, time to get merchandise from the backroom to the sales floor and pace need to be
ramped up.

PULL /

Generally speaking, most stores do replenishment on a “pull” basis today. That means items are pulled from the
backroom or off site based on a particular need. That may include:

Replenish the leaseline based on sell through.
Replenish missing sizes on the floor.
Go to the backroom to pick up a size or two for a customer based on a customer request.
“Pulling” merchandise is generally taking about 5-10 specific items from the backroom onto the floor.

While there will still be a need for “pulling” merchandise as we do today, we will be introducing a more aggressive “push”
model for forcing merchandise from the backroom to the floor in a more deliberate and forceful way.

Doing big merchandise pushes will be assigned to a member of the management team (refer to your DOR Overview).
It will require a vision for floor capacity; a confidence to adjust the floor to accommodate more and the understanding
that what is in the backroom is not sellable to the customer.

Our merchandise flow will look like this:

New Collection
Arrivals

Additional Sell Down Initial Sales
or

PMD Markdown

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