With a turnover of 1.1 billion, HMV UK is the leading specialist retailer in the UK and Ireland for music, DVD/video, computer games and related products. Today, the retail chain has 200+ stores that equates to over one million square feet of trading space. The project is driven by the need for HMV to reduce inventory of its 140,000+ SKUs whilst at the same time improving on shelf availability across of all of its product categories. The window of opportunity to generate revenue from newly released products can be as small as a couple of weeks, TXT's demand forecasting and replenishment capabilities will maximise opportunities across all product categories.
Like many companies in the entertainment industry, HMV faces the challenge of selling very short life cycle products without sales history thereby making predicting demand difficult. Ensuring the initial forecast and then the ongoing replenishment is as accurate as possible - which is paramount in the first 2 weeks of a launch is a core strength for TXT's demand management solution. Once the initial implementation is complete the TXT solution will facilitate a deeper collaboration with HMV UK's suppliers, with them now being able to take a much more proactive role ensuring products successfully hit the shelf. Ultimately, this new partnership with TXT will help HMV UK and its suppliers to have the right products on shelf and at the right time.
Keith Noble, GM TXT e-solutions UK, said: "HMV UK's selection of TXT e-solutions' Demand Forecasting & Replenishment solution is further recognition of our expertise in the UK retail space and in the entertainment industry in general. We have spent considerable time and effort in further developing a solution based on widespread Microsoft technology and stack which provides end to end coverage for the entertainment Value Chain. This is key in a market challenged by consumer loyalty, to reduce stocks, increase on the shelf availability for the right products and keep making profits. We are therefore delighted with the opportunity to deliver real business value to HMV UK and look forward to building a strong long term partnership."
Shaun Carney, Finance Director, HMV UK, commented: "TXT was able to demonstrate a deep level of expertise in managing entertainment products with very short life cycles, their understanding of our business challenges was further reinforced by the fact that they are already working with two of our biggest suppliers in the music industry. I am confident the project will have many benefits for HMV UK including most significantly, reduced inventory and an increase in sell through leading to a boost in profitability."
About TXT Group
TXT e-solutions is an international software products and solutions vendor and leader in 'Strategic Enterprise Solutions' in the industrial and media sectors. The principal business areas in which it operates are Demand & Supply Chain Management (DSCM) with TXTPerform offer and Media & Channel Integration with TXT Polymedia company (100% subsidiary); advanced software systems for the Aerospace & Defence and Banking & Finance industries with the TXT Next offer. The company is listed on the Star segment of the Italian Stock Exchange (TXT IM). TXT has approximately 600 employees. It has headquarters in Milan, with offices throughout Italy, in France (Paris, Lyon), Spain (Barcelona), Germany (Chemnitz, Halle), UK (London, Wynyard).