Introduction
Recruit Retail Services plc have been providing nationwide merchandising support to Homebase for over fifteen years. Large teams of skilled merchandisers are provided over a period of four weeks for new stores and up to 12 weeks for refurbishments. They replenish and merchandise stock, allowing Homebase staff to focus on their customers and continue business as usual.
Situation
One area of new store delivery that was not outsourced was the initial receiving and replenishment of all stock – known as “stockfest”. Taking place over a four-day period, stock arrives within the first 24 hours and is replenished and merchandised by existing store staff and colleagues from other stores, one week prior to the store opening.
In 2006 Homebase evaluated the stockfest procedure and found there was a threefold detrimental impact on the business:
- The secondment of staff from other stores affected the operation of the providing stores, compromising their offer and service
- The host store incurred high transport, accommodation and overtime costs of the staff being provided
- The new store staff responsibilities to assist in replenishment and merchandising, meant their familiarisation in the new store and outstanding training would be overridden
In summary Homebase required a solution to ensure the new store openings could be delivered fully merchandised and stocked in a short space of time, at a reduced cost without impacting other stores.
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Solution
Homebase decided to use an increased number of outsourced skilled personnel to cover the four-day stockfest. This consists of day and night shifts, with co-ordinators responsible for small teams of people, who in turn work within specific areas of the store allocated to them. This negates the need to bring in any Homebase staff from other stores, together with the logistics and costs associated with it. This also allows the ‘home’ store staff to complete their training and familiarisation with the new store environment.
Having trialled the stockfest function in two stores this is now standard procedure for all new store openings.
Result
Working together, Homebase and Recruit Retail Services plc have achieved new store openings with an efficient turnaround of stock. This has proved a financially viable solution for Homebase, as stock can be ordered and available to the customer within a very short space of time, providing a quick return on the store’s investment.
A Homebase spokesperson said, “The outsourcing of the stockfest function allows Homebase to deliver first class store openings with little impact on the rest of the business. We now have the flexibility and volume of skilled resource to enable us to stock the store in a reduced period of time, shortening the on-site time and allowing us to open stores quicker and more efficiently”.