Lojas Renner Adopts Expandable Structure to Add More Than 30 Stores per Year and Increase Profit Margin
 
 

Lojas Renner Adopts Expandable Structure to Add More Than 30 Stores per Year and Increase Profit Margin

  • Oracle Customer:  Lojas Renner
    Location:  Porto Alegre, Brazil
    Industry:  Retail
    Employees:  10,500
    Annual Revenue:  $1 to $5 Billion

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Lojas Renner is one of the largest clothing department store chains in Brazil. It has 135 distribution centers across the country, mostly concentrated in the state of Rio Grande do Sul and Brazil’s Southeast region. Five years ago, Renner became the first company in the nation to have 100% of its capital open to the stock market.

 
 

 
 

Challenges

A word from Lojas Renner

  • “Adopting Oracle Retail in the software-as-a-service (Saas) model ensured our competitiveness in the rapidly-expanding Brazilian retail market.” – Leandro Fachin Balbinot , Technology and Management Director, Lojas Renner

  • Support the company’s more aggressive rates of growth, as the number of stores in the chain has risen from 95 to 135 in the last two years alone, representing an increase of 40%
  • Improve inventory control to ensure proper replenishment and correct pricing for its clothing and accessories
  • Better understand the demand for clothing products to maintain a competitive edge in the retail fashion market

Solutions

Oracle Product and Services

  • Worked with Oracle Consulting to adopt Oracle Business Intelligence Suite Enterprise Edition Plus On Demand and Oracle Hyperion Planning, using the cloud computing model, fora flexible, standardized and scalable solution to keep up with opening more than 30 clothing and accessories stores per year
  • Increased the company’s profit margin with Oracle Retail by eliminating running out of merchandise, as the system monitors sales in real time and generates inventory alerts when needed
  • Reduced price markdowns by 20%, using Oracle Retail Markdown Optimization, which enabled Renner’s executive team to tailor each store’s stock to local customers’ tastes and behaviors
  • Integrated all systems--from the legacy system, to Oracle Business Intelligence Suite, to Oracle Retail—with Oracle SOA Suite, ensuring the integrity of the retail system’s information
  • Obtained accurate sales forecasts for each product and store by combining Oracle Retail Demand Forecasting and Oracle Hyperion Planning, leading to a significant improvement in product replacement and pricing
  • Strengthened relationships with suppliers using Oracle iSupplier Portal, making the company’s demand system transparent to nearly 800 partners of all sizes

Resources