Nordstrom Selects Oracle® Retail Size Profile Optimization

Nordstrom Inc. has selected Oracle® Retail Size Profile Optimization to help align merchandise in the right sizes to meet customer demand. The retailer expects the new system to help maximize assortment productivity and improve customer service. Oracle Retail Size Profile Optimization helps retailers optimize size distribution by merchandise category and by store.

Nordstrom plans to use the Oracle Retail planning application to more effectively analyze historical sales data to create unique store size profiles for its apparel merchandise. These analytically determined size profiles are expected to help the retailer better align purchase order quantity details with customer demand.

"We have always viewed our technology efforts as customer service initiatives to improve our merchandise offering and the way we serve customers," said Jan Walsh, vice president and business information officer for Nordstrom. "We believe the Oracle Retail Size Profile Optimization application will help us improve how we assort merchandise for our customers, helping to ensure we have the right merchandise at the right time for customers."

For example, when establishing order quantities, Nordstrom will have improved insight into the right amount of each size to order and the optimal amount needed in each store location. By helping to ensure that inventory is aligned to customer demand using appropriate size profiles, the Oracle Retail application is also expected to help Nordstrom achieve cost savings through reduced markdowns and inventory levels.

The profiles that Oracle Retail Size Profile Optimization creates can also be used to inform assortment planning and allocation systems, helping to boost sales and profitability. Retailers also use the application to reduce stock-outs and end-of-season markdowns due to size limitations.

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