18 | Orgill Case Study • Merchandising and inventory – This team worked through the store’s current inventory and product mix to determine where there were holes and opportunities to expand product offerings. They also evaluated brands and worked through inventory optimization and SKU rationalization. • Marketing – This team evaluated the Germantown Hardware brand position, determined marketing strategies and advertising tactics and focused on customer loyalty and retention. • Technology – This team evaluated technology needs for the location, examined POS capabilities and updates and transitioned any database information from legacy systems. • Supply chain – This team coordinated relationships with vendors and suppliers and worked together with the merchandising and inventory teams to ensure Germantown Hardware could meet the needs of its customers. • Business advisory and analytics – This team both provided oversight for any business issues, due diligence, legal issues, etc. but also worked to provide the analytical information the entire team needed to make informed decisions. “We also knew these different disciplines had the ability to call in other people from throughout the organization as needed throughout the process,” Walker says. “Everyone had their areas of expertise, but that didn’t mean that when one team finished their main area of planning they would just pass the baton to the next team and say ‘good luck.’ Everyone was in this from beginning to end.” Working the Plan After several initial meetings and input from the various teams, a plan, timeline and areas of responsibility were clearly defined. While a project of this size and scope might seem daunting to an individual retailer, the Orgill team leads were confident in their ability to execute. “We communicate a lot,” says Chris Freader, Orgill senior vice president of retail services. “This was the first time we worked on a project together for Germantown Hardware, but elements of this team work together regularly on other projects, so we are accustomed to the process. It’s a very collaborative environment. We might be talking about something product specific, but anyone can weigh in with their thoughts, and that’s what makes the entire project better.” Because the different representatives and teams working on the strategic planning for Germantown Hardware all brought a wealth of experience to the effort, they were also able to manage the inevitable twists and turns that occur in an effort of this magnitude. One of the early “curveballs” the planning team had to face came when the scope of the acquisition changed multiple times. The original plan for Germantown Hardware had CNRG acquiring the existing hardware store footprint, which had about 14,000 square feet of salesfloor space. However, shortly after signing off on that acquisition, the former owners offered up additional space in the same shopping complex. “When this became available, it changed our plans in a variety of ways,” Walker says. “We knew we wanted as much square footage as we could get, so we just had to adjust on the fly.” Then, shortly after understanding they would have access to additional square footage, the owner came back and offered up even more space—the entirety of the shopping complex. “This required us to go back and adjust again,” Walker says. Making these kinds of changes on the fly, while not ideal, were also not out of the ordinary for the planning team. “We specialize in pivoting,” Freader says. “That’s the nature of a lot of the projects we work on, and again, while an individual retailer might only work on a project like this once or twice in their entire careers, our team handles these kinds of projects all the time. It’s hard to faze us.” Orgill Team Meets in Germantown Hardware's Eagle's Nest
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