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Optimising Online and In-Store Synergy // Streamlining Inventory for Seamless Shopping

Achieving Harmony between Online and Physical Retail Channels
Today more than ever the online and offline worlds are merging. And fashion retailers must find ways to create a seamless shopping experience for their customers.

Balancing the stock between online and physical stores presents a significant challenge for retailers.

Everyone strives to avoid cannibalising sales from one channel while ensuring consistent inventory availability.

In this article, we will explore the importance of optimising online and in-store synergy and how you can deal with omni-channel stock optimisation.
The Challenge: Balancing Stock without Cannibalising Sales

In the dynamic landscape of fashion retail, striking a perfect balance between online and physical stores is a constant challenge.

The ultimate goal is to provide customers with a seamless shopping experience regardless of the channel they choose, while also avoiding any negative impact on sales.

This challenge requires fashion retailers to navigate several intricacies and find innovative solutions to optimise stock allocation between their online and brick-and-mortar locations.
Ensuring Consistent Inventory Availability

One of the central challenges faced by fashion retailers is ensuring consistent inventory availability. A retailer's nightmare scenario is a potential customer searching for a product only to find it out of stock in one channel but available in another.

Such situations not only frustrate customers but also risk pushing them towards competitors. It is essential to strike a delicate balance between both channels to prevent stockouts while maximising sales.
Preventing Excess Inventory and Markdowns

On the flip side, another challenge in optimising online and in-store synergy is minimising inventory excess.

Overstocking in one channel can lead to missed revenue opportunities and eventually result in markdowns, particularly as new collections are introduced.

Markdowns can be costly and impact profitability. Finding the optimal balance between stocking enough inventory to meet demand while avoiding excess stock is crucial to the success of any fashion retailer.
Minimising Product Cannibalisation

Ensuring that one channel does not cannibalise sales from another presents yet another challenge in achieving optimal synergy.

Retailers must carefully manage their assortment planning in each channel to offer a differentiated, yet complementary range of products.

Without this strategic differentiation, customers may have no incentive to choose one channel over the other, potentially resulting in lost sales.

Effective assortment planning requires a deep understanding of market trends, customer preferences, and the ability to customise offerings for each channel.

Maximising Profitability

Ultimately, fashion retailers need to drive profitability while creating a seamless shopping experience.

Achieving this delicate balance is not only essential for sustainable growth but also for maintaining a competitive edge in the market.

By minimising markdowns, optimising inventory allocation, and curating assortments that cater to the distinctive needs of each channel, retailers can maximise their sales potential and enhance their brand's reputation.
The Solution: Omni-Channel Stock Optimisation and Strategy Planning

Our expertise at KIVALUE lies in omni-channel stock optimisation and strategy planning. We have identified 4 major elements that every retailer should review and strategise upon - Advanced Demand Forecasting, Merchandise Planning, Assortment Planning, Pricing Management.

Once implemented, each part enables fashion retailers to achieve seamless shopping experience while maximising profitability.

Key elements of omni-channel optimisation:

Create forecasting models to leverage historical data and market trends. This helps predict demand accurately across online and physical channels, ensuring better stock allocation and replenishment.


Develop comprehensive merchandise plans that align inventory levels with market forecasts and channel-specific requirements. This enables you to optimise stock placement and minimise the risk of product cannibalisation.


Review assortment plans that cater to the distinct needs of each channel. By customising assortments for online and physical stores, you ensure an engaging and relevant shopping experience.

Pricing Management

Employ effective markdown optimisation strategies to minimise the negative impact of discounts on overall profitability. By analysing market trends and customer behaviour, you will be able to maximise margins in each channel.

Our Capability: Analysing Sales Trends and Creating a Stock Distribution Strategy

To address the challenge of optimising online and in-store synergy, we offer a 5-day workshop that provides retailers with actionable insights to enhance their stock allocation and distribution strategy.
Our workshop includes the following components:
Data Analysis
We conduct an in-depth analysis of sales trends across both online and physical channels. By examining historical data, we identify patterns and opportunities for improvement.
Inventory Assessment
Our experts analyse the current stock levels in each channel, considering demand forecasts and market trends. This assessment helps identify gaps and areas for optimisation.
Strategy Planning
Based on the analysis and assessment, we develop a custom stock distribution strategy for our clients. This strategy ensures the right products are available in the right quantities at the right locations, enhancing the shopping experience for customers.
Implementation Guidance
We provide guidance and support during the implementation phase, assisting retailers in executing the stock distribution strategy to achieve optimal results.
Unlock the potential of optimising Online and In-Store Synergy

Book your 5-day workshop
Benefits of Optimising Online and In-Store Synergy

By embracing our omni-channel stock optimisation and strategy planning services, fashion retailers can experience significant benefits:
  • Seamless Shopping Experience

    Optimising online and in-store synergy enables a cohesive and consistent shopping experience for customers, regardless of the channel they choose.
  • Maximised

    By strategically allocating stock and ensuring inventory availability in both channels, retailers can maximise sales potential and avoid missed revenue opportunities.
  • Reduced

    Comprehensive approach helps retailers minimise the negative impact of excess inventory and markdowns, improving overall profitability.
  • Enhanced Brand Reputation

    A seamless shopping experience, with well-stocked and relevant assortments, strengthens brand reputation and customer loyalty.
Optimising stock placement and distribution can lead to a potential 8% uplift in overall sales

For a retailer with $25M revenue, this translates to $2M revenue increase
About the Author

Giorgio Loiodice brings over 20 years of global supply chain expertise to fashion, luxury, and consumer goods industries.

He's a trusted advisor to leading retailers and fashion brands, shaping their omnichannel success.

Explore his insights in this article.

Giorgio Loiodice

Chief Innovation Officer

At KIVALUE we cover end-to-end
fashion retail processes
From connecting merchandising, buying, and planning processes to omnichannel inventory and markdown management

We offer FREE assessment of your current solution requirements.