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EmpowerWFM MODELL S SPORTING GOODS Retail Case Study

2 Modell s Sporting Goods THE CLIENT Modell's Sporting Goods is America's oldest, family-owned and operated retailer of sporting goods, athletic footwear, active apparel, and fan gear, committed to providing a convenient and compelling shopping experience for the athlete and fan in all of us. Founded in 1889 by Morris A. Modell, the first Modell's store was located on Cortlandt Street in lower Manhattan, NYC. Four generations of the Modell family have developed the business into a chain of over 150 stores in New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Massachusetts, New Hampshire, Delaware, Maryland, Virginia, and the District of Columbia. We can call or email customer support at Empower about any issue and a response is only a matter of seconds or minutes away, while solutions are regularly found in the same day. This allows us to stay focused on improving sales and customer service, spending less time on administrative functions. Richard Givens Operations Development Engineer

Retail Case Study 3 THE CHALLENGE As Modell s experienced continued growth in the United States throughout the last decade, a number of business needs were identified that couldn t be satisfied with their existing workforce management solution. Visibility was nonexistent, in terms of how stores were spending their payroll, and there was also no capability to calculate the ratio of sales to non-sales related activity in stores. In terms of scheduling, visibility was also limited. Corporate wanted to analyze and improve how stores were scheduling, to explore whether associates were simply being scheduled by department or if sales per hour (SPH) was properly being used to help schedule in terms of demand needs. An ability to explore whether stores were compliant with operations directives was also needed, as no compliance records for individual stores were available at the time, and SPH was gauged only with stores in mind and not departments, so the right associates weren t being scheduled in the right places. In addition, time and attendance tracking needed to be centralized. Schedules were being copied from week to week, with preconceived requirements, and were far from optimized in terms of labor.

4 Modell s Sporting Goods THE SOLUTION The goal was to find a solution that would provide centralization in workforce management processes and high visibility from corporate down to the store level. After considering five different solutions to improve control, Modell s chose to run a pilot demonstration with EmpowerWFM to experience the full capabilities of the solution. Even before finishing the pilot to calculate possible ROI, Modell s had identified Empower as the best option moving forward. The decision was based on a number of solution-specific features in EmpowerWFM that aligned directly with business challenges and goals. This included a web-based solution, dynamic forecasting, expanded reporting capability, high configurability options, and not the least, the establishment of a relationship and partnership with the Empower team that would carry on through the implementation and support stages. Empower s renowned PowerUp Implementation process began with developing a complete understanding of the Modell s business. During this time, Empower identified complexities from different store locations, pinpointed the types of tasks that associates were occupied with, and analyzed what was impacting productivity. Working alongside store managers and corporate, thorough documentation and training opportunities supplemented the implementation process for a complete buy in from the corporate level all the way to store associates. 77% With the help of EmpowerWFM s Auto Scheduler, the time it takes to create a store schedule has been reduced by 77 percent. This additional time is then dedicated to other tasks such as running stores more efficiently, assisting customers, and other activities that have a direct impact on increasing sales.

Retail Case Study 5 THE RESULTS Following implementation, the high level visibility that was missing with the previous solution is now a mainstay of their workforce management process, as real-time views into payroll costs, sales projections, and scheduling tendencies are all being utilized. As a result of these capabilities, custom reporting has allowed stores to be staffed more efficiently and managers are able to be coached to maximize scheduling efficiency. This gives management more focus on running the store, with less time spent on schedule development and administration of time and attendance processes. Throughout and after the process of implementation, Modell s continued to realize the positive impact that EmpowerWFM was having on their processes and potential. The total power of the scheduling engine was a welcome surprise, as schedules can now be patterned in multiple ways to their needs and preferences, all while ensuring complete efficiency in terms of who is being scheduled and when. Modell s is continuing to focus on training to help maximize the impact of EmpowerWFM s scheduling tool. As a result, stores have been increasing conversion rates with the help of a better understanding on business patterns and improved allocation of individual store payroll. The relationship between Empower and Modell s was much more than just results and numbers, as Richard Givens, Operations Development Engineer for Modell s stated. This is a partnership, and much more than just a simple business relationship. Every step of the process from implementation to the resulting ROI has revealed that Empower has the same goals in mind as we do and they are equally invested in our success.