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Call us for a free FastStart Consultation: +1 888 918 2748

Call us for a free FastStart Consultation: +1 888 918 2748

by Justin Guinn,
Market Research Associate
Last Updated: January 6, 2017

Footwear is difficult inventory. A single shoe in three colors in standard sizes and widths could be as many as 108 different stock keeping units (SKUs). There may be matching accessories, which may also be in colors and sizes. Then there are special orders for the styles and sizes that are not in stock. There are even shoes that can be dyed to match the color of a particular outfit. Shoe sales are fiercely competitive; programs to encourage customer loyalty are common. Shoe stores are adopting electronic communications as part of maintaining customer relationship.

Because of the complexity of the inventory, order entry and inventory receiving are critical functions. Payroll is standard, although commissions sales are the rule. Accounts receivable, accounts payable and general ledger are also standard. While most systems are premises based, software as a service (SaaS) is a small but growing option for retail shoe store systems.

There are some interesting customer relationship management (CRM) issues. Usually, one of the benefits of being a supporting member of the organization, for example, a contributing member of a museum, is a discount at the gift shop. Another factor is subscription sales. Some gift stores sell limited-edition items; patrons can subscribe to the items and receive a notification when a new group is in stock.

Common Features of Footwear and Shoe Store POS Software 

In addition to the core accounting functions, footwear and shoe store operators should evaluate the following functions to meet their unique requirements:

Size, width and color matrix The key to a successful footwear inventory software system is a matrix of modifiers. The general description is entered once, and the sizes, widths and colors are listed as modifiers to the basic description. The inventory must track each item as a separate SKU, and maintain separate reorder point.
Accessory coordination Many shoe makers provide matching accessories, such as belts and handbags. In other cases, different manufacturers make accessories to “coordinate” with shoes. The inventory and POS system should list matching accessories on hand and available as special orders.
Customer relationship management Because of competition from online stores, warehouse stores, and department stores, shoe specialty 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.
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.
Prescription management If the shoe store offers orthopedic supplies, the system needs to track prescriptions for clients and doctor contact information. The system should also notify customers if prescriptions should be updated, for example, as children grow they need to have their prescriptions changed.
UPC database Because of the large number of shoes, other footwear and accessories from numerous vendors, the system needs to provide a catalog of products and UPCs. The catalog must be updated frequently or better yet, available online.
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.
Package sales The system should support combining different inventory items into a single package. The POS should treat the package as a single SKU, but correctly adjust the inventory level for each item.
Inventory images Since many shoes are similar, the inventory system should show pictures of the inventory. Advanced systems will be able to show the each item in the inventory in all available colors.

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