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Retail
Empowering a Well Known Retailer
Overcoming merchandising challenges and delivering £37m profit through increased availability, sales availability and margin
A renowned clothing, food and home retailer found themselves battling a downturn in sales, compounded by an inability to consistently meet customer demand. Popular fashion lines and core sizes were often sold out, while nearly 25% of stock was regularly pushed into markdowns.
Newton worked in close partnership with the brand and used deep expertise in transforming supply chain and procurement teams through a blend of innovative, co-designed digital toolsets and hands-on, structured training to support. Our approach focused on sustainably upskilling teams, driving real-time insights, and delivering tangible business results across operations.
“Partnering with Newton has been transformative for our business. Innovative tools and tailored training have revolutionised how our teams work, empowering us with data-driven insights that have already had a measurable impact”
Retail Director
Fighting Declining Sales & Inefficiency
Merchandisers, under immense pressure to “get it right,” were struggling to extract useful insights from overly complex systems. This lack of actionable data resulted in unprofitable decisions, operational chaos, and a loss of control across the board. Managers felt disconnected, unable to bring cohesion to teams or gain full visibility into stock movement. This created a perfect storm of mismatched stock levels, unsold items, and frustrated customers.
Building on our successful track record with the retailer’s food division, Newton was engaged by the clothing team to address these systemic issues through intelligent, data-driven merchandising.
Key Issues
Mastering complexities
With over £800 million of stock forced into sales annually due to poor buying decisions and stock control failures, the retailer needed a partner capable of delivering both insight and transformation. Key issues included:
01
Inconsistent size ratios, leading to overbuying in some categories and shortages in others.
02
Procurement teams were buying blind, unaware of real-time trends, leading to a disconnect between what customers wanted and what was available.
03
Lack of stock visibility and ineffective forecasting were causing a ripple effect of lost sales, excess inventory, and markdowns.
Key Innovations
After a detailed analysis, Newton developed a suite of intelligent tools to empower buyers and merchandisers, providing them with real-time insights that drove smarter, more accurate decision-making. We rapidly prototyped and tested these tools with selected teams, creating a fully integrated, data-driven merchandising system. Key innovations included:
01
An attribute-driven size ratio predictor, improving stock accuracy.
02
Algorithms that refined stock cover settings, balancing supply and demand.
03
Live dashboards that provided instant visibility into the effects of buying decisions, availability, and store-level performance.
Transforming Procurement Capabilities
Previously, buyers and merchandisers relied on complex Excel spreadsheets and personal estimates, leading to inefficient processes and poor decision-making. Newton revolutionised their approach by embedding intelligent, automated tools into their workflow, dramatically simplifying operations.
We collaborated with 250 buyers and merchandisers across multiple ‘lab’ departments to test and fine-tune these tools, ensuring they integrated seamlessly into daily tasks. The tools provided clarity, live visibility, and a data-driven decision-making framework that maximised the retailer’s existing systems.
Faced with the challenge of rolling out these changes across 31 teams and 4 departments, we implemented an innovative ‘Academy’ model. Instead of issuing bland SOPs or email instructions, the retailer piloted with a select few teams who then became champions of change, spreading adoption across the organisation.
This targeted, human-centred approach to training resulted in:
With data now at their fingertips, 91% of staff reported they would not revert to old ways of working. This lead to a significant reduction in stock markdowns, improved on-shelf availability, and empowered teams capable of making decisions that align with business objectives. Importantly, the collaboration between Newton and the retailer delivered an unprecedented £37m profit through sales availability and margin.
Newton didn’t just help fix their merchandising issues – the team empowered their people to think smarter, act faster, and create long-lasting operational success.
“We’re now more agile, efficient, and better equipped to meet customer demands. This collaboration not only solved our immediate challenges but has also set us up for long-term success in a highly competitive retail landscape.”
Merchandiser