Raley’s is implementing Itasca’s Magic computer-generated ordering and inventory optimization and DSD-receiving solution to all of its locations after a successful pilot in a few stores that saw a decrease in out-of-stocks and a reduction in excess inventory, leading to in an increase in sales.
“Better management of inventory is of critical importance, providing better accuracy, less out-of-stocks and higher-quality products,” said Kevin Konkel, Raley's COO. “Since implementing Itasca Magic, we have seen significant improvements in on-shelf availability, resulting in same-store sales increases and reductions in overall inventory in our early store implementations.”
The Itasca Magic system forecasts consumer demand along with sales, and in return uses sophisticated algorithms to order the right quantity of the right products. Magic is a field-proven software solution that optimizes the replenishment and management of store-level inventory for all departments.
Raley’s operates 129 stores under five banners: Raley’s, Bel Air Markets, Nob Hill Foods, Food Source, and Market 5-ONE-5. The West Sacramento, Calif.-based grocer is No. 26 on Progressive Grocer's 2018 Super 50 list of the top grocers in the United States.