The Holt Case relates to the company’s snapshot, case situation and key management issues pertaining to the Holt Renfrew which was being operated in Canada. Company Snapshot Holt Renfrew was constituted as a hat and fur shop in Quebec City in 1837. The company is recognized as one of the elite high-end retailers of Canada. Almost 10 stores were operated by the company in seven cities of Canada in which cosmetics and designer fashions were being sold such as Oscar de la Renta, Gucci, Prada, Dolce & Gabbana and Armani.
These products were usually imported from Asia, Europe and the United States. The top quality was the base of Holt Renfrew brand which included private-label and branded assortments and designers that were exclusively for men and women. The Holt Renfrew was then owned by Galen Weston who is a Canadian business leader heading The Wittington Group. Case Situation During the observation of case situation, it was revealed that the staff used to spend much of the time in telephonic communication for adjusting and confirming previous orders.
The stock of merchandise was quite high due to which staff remains busy on phone lines for orders tracking, delivery status, confirmation and shipment with transportation service providers and suppliers. The goods were delivered to the distribution centre by suppliers without prior intimation which used to cause inconvenience in scheduling routine tasks. Even it was not possible to determine whether right quality and quantity is being received.
Warehouses were so much loaded that only in DC; inventory was stored around $40 million worth which created a hindrance in tracking the shipment in a timely manner. Even the complaint was lodged by store managers regarding overstocks of merchandises which prove the worse condition of warehouses. Key Management Issues The key management issues could be the closure of secondary warehouse and the consolidation of operational warehouse into DC.
It would be useful for DC if the addition of mezzanine floor up to 20,000 square feet with a cost of $1 million could be practiced. Additionally, the warehouse problems arose due to overloaded stock. The reason behind this fact was the less sales target being accomplished and improper system involving excessive merchandises which was ordered without prior requisition or sanction and the same was too seriously complained by the store managers.