Dirt Cheap Transforms Retail Operations with the ReStore for Retail Platform

Dirt Cheap, a leading discount retailer, was challenged with inconsistent in-store execution and issues related to stock allocation and assortment. Discover how the brand used Hilco Global’s ReStore for Retail virtual store management platform to transform its retail operations and achieve nearly 100% compliance of in-store execution across its chain.

Background 

For more than 30 years, Dirt Cheap has been working to give unsold products a second chance, offering exceptional value to consumers and keeping quality items out of landfills. However, with nearly 70 physical locations and a booming global wholesale business, the company struggled with cross-chain coordination when executing key operational strategies on a large scale. When operational leaders realized that in-store execution of new directives was only at a mere 25 to 30%, they decided to implement ReStore for Retail to drive in-store sales and store-wide compliance rates.

As a non-traditional retailer, Dirt Cheap sought an adaptive, versatile retail merchandising solution that optimized retail processes and significantly enhanced in-store performance. 

Challenges 

When Dirt Cheap brought in Michael Goldman as Vice President Head of Stores, he realized the company was underutilizing its existing technology stack. Worse, they were up against major challenges, all of which directly impacted store performance and profits. “When I got here eight months ago, stores were an abomination. We had issues within our chain of getting the right product. We've had merchandising issues, we've had allocation issues,” says Goldman. Additional issues he observed included:

• Inconsistent retail store management
• Lack of company-wide cohesion and consistent communication directives 
• Insufficient execution compliance rates 
• Mismanaged inventory to include product quantity, pricing, and assortment 
• Increasing customer complaints about store appearances and lack of on-shelf inventory 

These challenges negatively impacted both the chain and individual stores. This resulted in lost opportunities and a disconnect between operational goals and floor initiatives. Michael knew that something had to change if the brand was going to survive – and that’s where ReStore for Retail came in. 

Solution 

Implementing widespread change is difficult for any retailer, especially one as large as Dirt Cheap. With ReStore for Retail’s virtual store management platform, Dirt Cheap improved the six critical pillars of operational success with the goal of streamlining retail operations, boosting store performance, and closing the gaps between strategic directives and in-store execution.

Dirt Cheap optimized the retail store management software to meet their unique needs, challenges, and preferences. To facilitate and sustain the required change management, Dirt Cheap’s operational leaders implemented hands-on training sessions to ensure system familiarity and establish an open and constructive communication process.

Dirt Cheap store and district managers, along with retail experts from ReStore for Retail, partnered to ensure efficient knowledge transfer. 

Results 

In the words of Michael Goldman, “Right now, we are meeting close to 100% compliance every single week on store directives. That doesn't mean that the directives were done perfectly in every store. But since every leader is looking at the same consistent dashboard, as a team, we are getting nearly 100% compliance on all the initiatives that we are putting out.”

And that is not the only noticeable change. 

“Customers have also noticed a major change in the look and appeal of the store,” says Goldman. “And they comment they will buy more as we get more, high-quality products.” 

Luckily, ReStore for Retail has also helped the company better manage inventory across its chain. Operational leaders and retail store management have a direct line of sight on what products are coming into each store, how they should be priced, and where the product should be displayed on the floor. ReStore’s virtual store management platform enables Dirt Cheap’s execution teams to quickly approve or modify store plans, maintaining cross-chain consistency, and ensuring each store aligns with the defined company brand standards.

Effective use of the ReStore for Retail platform enabled Dirt Cheap to improve communication and achieve faster reaction times. With ongoing inventory management support, particularly in terms of product mix and allocation, the company expects to see a positive impact on sales as well. 

Key Takeaways 

A big retail shake-up requires a big commitment to how things are done. For Dirt Cheap, that meant tailoring the retail store management app to their unique needs and preferences so that they could better communicate with their teams across the southern U.S. and ensure that critical initiatives were appropriately executed.

Some notable insights from their experience: 

• To see real benefits, it’s essential that a company not just invest in the right technology but actively engage with it across all levels of their organization. 
• Achieving desired outcomes requires buy-in, which is achieved by training and empowering all teammates to be part of the solution in delivering desired results.  
• Integrating visual validation tools into the operational workflow can make all the difference in ensuring compliance and collaborating on store initiatives. 

Do some of Dirt Cheap’s challenges sound familiar? Consider how you might benefit from smarter, better retail store management solutions, and get in touch to discuss your own experiences or share what you’re looking for.