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Apparel & Fashion Retail Software
Apparel shops have a unique problem with inventory. Stock is not only segmented by item and color, but by size as well. If a dress is stocked in all sizes from 0 to 16 and in four colors, that is 32 different versions of the same item. Even a men’s shirt in small, medium, and large in white, ecru, and blue is nine stock keeping units (SKUs). To further complicate the issue, many fashions have accessories, for example, a hat and gloves that match a coat. Apparel inventory software needs to not only track what is in stock and in which color and size, but the matching accessories. All of this information must be available to the point of sale (POS) system. For a chain store, in-system transfers is an important feature.
Customer relationship management (CRM) is a primary concern. In addition to names, phone numbers, and email addresses, the CRM system should track favorite designers and important dates such as weddings, mitzvahs, and proms. Combined with sales history, the CRM should also provide a loyalty program using email, text messages, and Facebook.
Accounts receivable is standard but should include layaway. Payroll is standard except that some stores have commissions, sales quotas, or both. General ledger and accounts payable are standard. Most stores use on-premises systems, but cloud-based software as a service (SaaS) options are available and offer an attractive alternative accounting platform for apparel and fashion stores.
Key Requirements for Apparel/Fashion Retailers
In addition to core business functions, apparel/fashion retailers should evaluate the following functions to meet their unique requirements of a clothing POS solution:
| Layaway | The POS system should allow customers to put products on layaway and identify the item as such in the inventory system. The layaway payments should be treated as deposits in the general ledger. |
| Holds | The POS system should allow merchandise to be placed on hold, and identify it as such in the inventory. The hold should automatically expire after a defined time if the item is not purchased or placed on layaway by the customer. |
| Store transfer | If the store is part of a chain, the inventory system should have up-to-date information on inventory in all of the stores. If a customer needs an item that is not in stock at a particular store, the system should check all other stores. The customer should have the option hold the item for pick up at another store or have it transferred to a store of the customer’s choice. |
| Inventory matrix | The key to a successful apparel inventory system is a matrix of modifiers. The general description is entered once, and the sizes and colors are listed as modifiers to the basic description. The inventory must track each item as a separate SKU, and maintain a separate reorder point. |
| Customer relationship management | Because of competition from online stores, warehouse stores, and department stores, apparel stores have aggressively adopted CRM. In particular, they are adopting social networking by establishing Facebook pages and tweeting coupons to registered customers. The system should also track color, style, and designer preferences to notify customers when new shipments are due. It is important to track special dates for targeted, personalized sale opportunities. |
| Customer loyalty program | As part of CRM and to further solidify customer relations, many shoe stores have customer loyalty programs. The store system should track sales history and monitor loyalty program points awarded and redeemed. |
| Seasonal planning | Fashions and accessories change from season to season. The inventory should make recommendations for new orders. In addition, it should track existing inventory and make sales-versus-storage recommendations. |
| Accessory coordination | Many apparel manufactures provide matching accessories, such as belts. In other cases, different manufacturers make accessories to “coordinate” with outfits. The inventory and POS system should list matching accessories on hand and available as special orders. |
| Split Tender | The system must be able to accept payment over several different methods. For example, a customer may want to pay with cash and two different credit cards. The system must properly apply the split payments to the correct ledger accounts. |
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FashionSense
We recommend FashionSense for both single-store and medium-sized apparel retailers. The style matrix is one of this point-of-sale application’s strongest features, allowing both inventory and reporting within the matrix.
Vision Suite
Jesta I. S.’s Vision Suite supplies apparel retailers with a wide range of tools to manage their business, including warehouse management, financial reporting, merchandising, and web-store integration.
CounterPoint by Radiant Systems
Includes an inventory matrix, inventory management, purchase order management, loss prevention, and layaway program management to assist apparel retailers manage the point of sale, reduce shrink, and maintain peak inventory.
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Visual Retail Plus
This POS system includes an advanced matrix for complex size, color, and style SKUs, as well as QuickBooks integration for additional accounting needs. Visual Retail Plus also contains CRM and supply chain functionality.
LightSpeed
Multiple stores and inventories can be organized and consolidated using the stock features within LightSpeed POS. Additionally supports store transfers, item lookups, intra-store reporting, and returns on an OS X platform.
Retail Anywhere
The business intelligence and inventory modules found in Retail Anywhere are great tools for apparel retailers. Includes scorecarding, sales recording, as well as marketing campaign management within the main POS application.
Retail STAR
Clothing-specific features such as a style/color/size inventory matrix, as well as internal/external clothing transfer capabilities are great assets for apparel retailers looking for an integrated POS and inventory solution.
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