Moss Bros pins hopes on stock management system

Menswear retailer Moss Bros Group has installed a stock management system and point-of-sale (Epos) system to keep track of inventory and trim costs. The implementation is in tandem with the retailer's new central distribution centre becoming fully operational.

The news comes as the retailer announced a reduction in pre-tax profits for the year ending 27 January to £5.1m, from £6.2m last year .

Like-for-like sales were also down 1.3 per cent over the period.

Moss Bros chief executive Philip Mountford admitted the restructuring of the business - of which the new systems and distribution centre are a part - had impacted on the retailer's performance.

He said in a statement: "A number of steps have been taken during the year to strengthen the business, which also negatively affected performance in the period, although they will be positive in the longer term."

The Epos system was supplied by South African company UCS and installation was already underway when financial director Michael Hitchcock assumed the role six months ago.

Speaking to silicon, he said: "The new Epos system will improve transparency of stock as it passes through the business and will give us better data-mining to identify [product] winners and losers."

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The retailer relocated its distribution centre and introduced a stock management system that will allow improved stock control and should lead to fewer unplanned price reductions - and subsequent improvement in gross margins. The new supply-chain infrastructure will allow the retailer to turn lines around more flexibly.

Hitchcock said: "We are moving from a model of storing stock in a five-storey warehouse in Stratford to one where stock moves continuously through a new 100,000 square foot national distribution centre in Barking."

The new systems underpin the retailer's strategy of improving store portfolio, including a refit programme of its 150-plus store portfolio and an expansion of its concept store strategy.

Hitchcock said: "We expect the new systems and the national distribution centre to have a positive impact on trading by Q4 this year, with the full effect being felt by early next year."