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SAS® Business Analytics keep spirits high at midsize wine retailerThe Wine House squeezes out excess inventory, earns back investment in less than six monthsNRF 98th Annual Convention and EXPO, NEW YORK (Jan. 12, 2009) – Less than six months after deploying its inventory management application, The Wine House is toasting returns greater than its investment in SAS® Enterprise BI for Midsize Business. Using the solution from Business Analytics leader SAS, the brick-and-mortar and Internet retailer discovered nearly $400,000 in “lost” inventory sitting on warehouse shelves. “The first day the SAS application was live, we identified approximately 1,000 cases of wine that had not moved in over a year. That’s significant cash tied up in inventory,” said Bill Knight, owner of The Wine House. The 30-year-old firm counts on fully turning over inventory seven times yearly. “We had a huge sale to blow it out, and just in time, because in today’s economy, we would be choking on that inventory.” A midsize business with annual sales of $20 million and 38 employees, The Wine House has no IT department and limited resources. Knight’s point-of-sale system could provide neither inventory query and reporting nor management by price points. He knew that business analytics could provide answers. “I learned what SAS could do for me at a retailing conference, but I needed help installing and managing it. That’s where SAS’ channel partner came in,” said Knight. “SAS Alliance member Modern Analytics built an Internet portal where our buyers can log on and see what price points are turning over,” he explained. “We can also see which suppliers are the most effective. Today, for example, $20 bottles sell a lot better than $100 bottles.” Knight and Modern Analytics now plan to exploit the extensive customer data accumulated by The Wine House, using SAS Business Analytics to understand customer behavior and drive sales and profitability. The first step: track changes in customer sales and visits to better target marketing and advertising programs. “Business analytics provide solid value for organizations of many sizes,” said Jim Davis, Senior Vice President and Chief Marketing Officer of SAS. “The Wine House has quickly benefited from SAS and clearly sees more value to come by applying business analytics to customer-facing applications.” For more information about SAS® Retail Intelligence Solutions, visit http://www.sas.com/industry/retail/. SAS is demonstrating its retail intelligence solutions at the NRF 98th Annual Show and EXPO in Booth 1337. About The Wine House The Wine House has been serving customers from around the world for more than 30 years from its 25,000 square foot facility in Los Angeles, providing a unique, exciting shopping environment for clients ranging in wine experience from the complete novice to the connoisseur. The vast selection of more than 7,000 domestic and imported labels is one of the largest and most discerning in the country. For more information, please go to www.winehouse.com.
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