Chico’s takes steps to better manage inventory

Ft. Myers, Fla. Hoping to gain better control over inventory across its three retail brands, Chico’s is adding software that will manage merchandise planning and allocation.

The chain is using Enterprise Planning, Assortment Planning and Allocation solutions from JDA Software, Scottsdale, Ariz. The applications all work together to support attribute-based planning for products, location, and time -- factors that retailers need when pursuing consumer-centric strategies.

The chain was originally developing similar systems with SAP America, Newtown Square, Pa., “but our new management team has decided that JDA’s best-of-breed software better serves this portion of our business,” said Robert Atkinson, VP investor relations, Chico’s.

By discontinuing development with SAP, Chico’s will write-off between $5 million and $6 million in costs associated with this previous investment in its fiscal first quarter financial results, ended May, 2, according to accounting principles, he reported.