Hitting the “trifecta” of retail success: Mason Brothers
With expert, informed planning guidance, this family-owned footwear and apparel store was able to eliminate the burden of bloated inventory, increase sales by 31% since their post-COVID reopening, and achieve the long-awaited goal of opening a new location.
Learn how Mason Brothers hit the trifecta with increased sales, higher profit margins, and improved cash flow with Management One and veteran Retail Expert Ritchie Sayner.
The store was founded in 1982 by John and Pat Mason in the town of Lancaster, Kentucky. In 2015, sons Todd and Greg purchased the store with the main focus on selling leading footwear brands and offering the best service possible. Mason Brothers is truly a family-owned and operated business.
In order to maximize efficiency, the brothers implemented the RICS point-of-sale system in 2015, which increased their profitability by providing key data, with sales margins improving from mid-30% to over 42%. However, they found that they were still burdened by bloated inventory and decided to look for outside resources to help them overcome their retail obstacles. Todd Mason recalls, “We discovered Ritchie Sayner through an article he had written for one of our trade publications and after speaking with him, it became clear that he was that ideal specialist, and Management One planning was the ideal tool.”
Tackling inefficiency
The main challenge they wanted to tackle was inefficient inventory management and turnover. As they put it, “We were overstocked with cash tied up in dead and slow-moving inventory. Our turns were well below any industry averages. We knew we had a problem, but we needed a plan and process to get us through.” That is where Ritchie stepped in.
His first step was to review the RICS Sales Analysis report to study the store’s class structure, sales, markdowns, ROI, and inventory turnover. With that information, he devised a class structure proposal that would best serve the Mason Brothers store, and he created an analysis that compared the store’s merchandising metrics to those of similar stores he had helped in order to set a goal. Using Management One’s Retail ORBIT® software, a plan was developed for each category, and they finally “had a road map that provided not only a sales and inventory forecast, but a markdown plan, and an open-to-buy plan by category.” Positive results came quickly, according to the brothers: “It did not take long to start seeing results and the sky opened.”
“We couldn’t believe the upside improvement that he thought possible….We do now, however.” - Todd Mason
“Deeply-rooted opinions on money tied up in inventory was keeping us from doing what was needed.”
All stats as of January 2021
Now, the Mason brothers have a regular monthly meeting with Ritchie to review performance and continue to adapt the established strategy for each category. The strong and trusting relationship that Todd and Greg have developed with Ritchie and the clarity they get from the Management One reports and forecasts allow them to feel confident in their ability to streamline their business and reach all their goals.
“M1 / Ritchie Sayner has done an incredible job in coaching us through the steps with a detailed monthly update.” - Greg Mason
Realizing the dream
These remarkable improvements have allowed the brothers to realize their dream of investing in another store. With Ritchie’s help, the Mason brothers have enough cash to begin the process of opening another location in early 2021 without the burden of debt (with plans of more locations to come).
Sales are up significantly since re-opening after COVID with an increase of 31% .
Learn more about retail expert Ritchie Sayner
A veteran retail expert, Ritchie has spent nearly four decades helping independent retailers improve profitability. In addition to speaking to retail groups at educational programs nationwide, he contributes articles regularly, to industry publications, on a wealth of retail topics.
His newly updated book, Retail Revelations-Strategies for Improving Sales, Margins, and Turnover, 2nd Edition is also available on Amazon.com.