LIDS' Journey To Endless Aisle Success

By Erin Harris, Editor-In-Chief, Cell & Gene
Follow Me On Twitter @ErinHarris_1

November 2015 Innovative Retail Technologies

A major technology upgrade helped LIDS Sports Group streamline POS operations and introduced true omni-channel inventory visibility.

Specialty omni-channel retailer LIDS Sports Group (LIDS) operates more than 1,300 North American stores as well as a thriving e-commerce site. The company has grown exponentially over the years; in addition to its direct-to-consumer business, LIDS operates Locker Room By LIDS, Clubhouse, and LIDS Team Sports. Like all retailers, inventory visibility is essential to top and bottom line improvement, and LIDS is no different. Because the retailer’s brick-and-mortar stores are regional in nature, each location is packed with products from that particular region’s beloved sports teams as well as national teams. As such, from store to store, as much as 65 percent of stock differs. Larry Havlik, VP of IT systems, and Kevin Thompson, director of applications at LIDS, explain why the company’s goal of making its entire inventory of team-specific sports apparel and memorabilia available in-store, online, or via a mobile device would require a much-needed technology upgrade.

HatWorld acquired LIDS back in 2001. Prior to the acquisition, LIDS used a POS solution that provided little flexibility and needed custom language development to accommodate its stores in the French-speaking regions of Canada. Custom code had to be written to the POS system’s base code, which became very time-consuming and costly. Further, LIDS needed real-time access to inventory data that would enable the retailer to meet customers’ anytime, anywhere needs. “Real-time inventory visibility was a real struggle for us,” laments Thompson. “We used to see only one store’s inventory, and we had to build a homegrown portal in order to have visibility into the warehouse. Our sales skyrocket during the holidays, March Madness, the Super Bowl, etc., and accurate inventory data is critical to accommodating customer demand.”

The POS and inventory visibility problems led LIDS’ executives to investigate other viable technology solutions. The retailer chose Oracle Retail Xstore (formerly Oracle’s MICROS Xstore), which allows for a wide range of customizations without code changes or help from the vendor. LIDS also rolled out Oracle Retail Order Broker (formerly Oracle’s MICROS Locate), which allows stores to view each other’s inventory in real time and also streamlines shipment. Indeed, Havlik states that e-commerce reaped almost instant rewards as a result of the Order Broker implementation. “As many as 800 stores became available online, and customers found that capability right away — the orders started piling in,” Havlik says. “We literally doubled the amount of available UPCs for a customer to order.”

Regardless of the origin of the order, Order Broker decides how to best fulfill it based on proximity to the customer and the most affordable operational cost. “We had to make many business decisions before we launched, as we turned almost 1,000 store locations into warehouses,” says Havlik. “Associates and customers alike now have real-time, chainwide inventory information regardless of the products’ location. Our aisles are officially endless, and we’re keenly aware of how this will improve customer loyalty.”

An Innovative, Comprehensive Mobile Strategy
LIDS’ technology road map includes a comprehensive mobile strategy. Thompson states, “If a customer walks by a 500-to-800-square-foot store and sees a tremendously long line, they’ll keep right on walking, which is why line-busting is critical for the business.” Further, Havlik explains that LIDS provides game-day concessions for both college and professional teams, and as such, LIDS will soon offer a service that allows fans to purchase products and personalized gear from their mobile devices — and the products will be delivered right to their seats before the end of the game.