With consumers’ shopping preferences becoming more digital oriented, it has become critically important for companies to strengthen their technological capabilities.
Bed Bath & Beyond Inc.’s ( BBBY Quick Quote BBBY - Free Report) latest move to bolster its inventory management technology upholds such a viewpoint. Markedly, this renowned home furnishing products company is partnering with RELEX Solutions. The company expects to make use of RELEX Solutions’ expert technological offerings for modernizing and enhancing efficiencies in its inventory management system. Let’s delve deeper. Technological Supremacy is Key to Growth
Bed Bath & Beyond is striving to bolster its omni-channel capabilities to meet rising online demand. In this context, the company’s move to strengthen technological capabilities in managing inventory looks quite prudent. Markedly, the company’s partnership with RELEX Solutions forms a part of its $250-million worth technology transformation efforts.
RELEX Solutions will provide access to a cloud-based technology platform, which will deliver automated forecasting, replenishment and allocation planning. This will improve the company's in-stock position and inventory turnover. Through such supply-chain automation, the company expects to drive customer’s shopping experience alongside being able to achieve operational efficiency that can help build on margins. The company is also likely to drive growth across stores and distribution centers by achieving enhanced technical expertise in inventory management. Technology transformation is an important part of the company’s efforts to modernize enterprise resource planning (ERP). Last month, the company partnered with Oracle Corporation ( ORCL Quick Quote ORCL - Free Report) as its Enterprise Resource Planning (ERP) technology provider. Apart from ERP deployment and boosting inventory management, the company’s technology investments roadmap includes strategic efforts such as product life cycle management, retail space planning and optimization, the launch of an array of exciting Owned Brands as well as real-time tracking of merchandise fulfillment within the supply chain among others. The support gained from the right technology platforms empowers Bed Bath & Beyond to cater to its growing digital wing. Markedly, digital sales surged nearly 75% in the third quarter of fiscal 2020. Several omni-channel services, such as Buy-Online-Pick-Up-In-Store (BOPIS) and Curbside Pickup, contributed toward the company’s digital sales growth. Driven by its strong omni-channel capabilities, Bed Bath & Beyond witnessed new customer acquisition to the tune of more than 2 million in the third quarter. In its other moves to bolster digital capabilities, we note that the company introduced same-day delivery services on bedbathbeyond.com and buybuybaby.com during the third quarter. Also, it partnered with Shipt and Instacart to provide such services. Additionally, we note that the company upgraded and re-launched its buybuy BABY app in November 2020. Apart from these, the company is focused on boosting private-label brands and Owned Brands portfolio. It is also progressing well with its cost-cutting actions as well as simplifying supply chain operations. We hope that such well-chalked plans are likely to keep the company poised for growth in the near term. In the past three months, this Zacks Rank #3 (Hold) stock surged 53.5% compared with the industry’s growth of 5%. Check These Retail Picks Five Below, Inc. ( FIVE Quick Quote FIVE - Free Report) , carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 32.8%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Tapestry, Inc. ( TPR Quick Quote TPR - Free Report) , holding a Zacks Rank #2, has a long-term earnings growth rate of 10%. These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
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