Retail performance measures for seasonal fashion

Abstract

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“…The more advanced models are costly, implemented for short-term and best at datasets with constraints. Forecast accuracy is recognized as a success factor in operations management [20]. In the scale of Nike, a small increase in accuracy can have a big impact.…”

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“…While there is some research on the significance of fashion logistics and agile supply chains [7,24,25], little has been written about the fashion logistics effects of complete garment technology combined with MC.…”

“…"High gross margins and customer service levels with as little inventory as possible" are essential for profitable retail fashion companies, according to the article by Matilla, King and Ojala [7]. King and Hunter, [30] propose retail performance ratios that can measure the success of sourcing and how well the range of products offered by a store meets customer demand.…”

“…The sell-through factor is defined as the percentage of products sold at full price in the store and an important factor for a high sell-through factor is the lead time, demand fulfillment time, from design to the point when the customer buys the garment. This time should be as short as possible [7,30]. Lost sales refer to how many customers visit a store but do not purchase anything.…”

“…A study of Finnish retailing companies' shows that the financial performance of traditional retailers with up-front buying is far poorer compared to retailers with in-season replenishment purchasing [7]. Time is an important factor from demand to fulfilment, that is, from the moment customer request is identified until the customer buys the product.…”