Case Study: Leading Department Store Chain achieves $90M in lost sales prevention with Mu Sigma

Identified lost sales opportunities due to Out of Stock (OOS) Scenarios for a leading department store chain

Leading Department Store Chain, a major U.S. department store operator with more than 1,000 locations and a separate e-retail channel, was struggling with out-of-stock inventory issues across fashion and basic products. Mu Sigma was brought in to help identify which products were staying OOS too long and causing lost sales opportunities, while also improving visibility into how inventory shortages affected other business groups.

Mu Sigma implemented a self-service dashboard using its AoPS, muPDNA™, muIDATM, and muUniverse™ frameworks to analyze demand, seasonality, lost sales, and product performance across the hierarchy. The solution helped prioritize inventory reallocations, identify the top 15 categories driving 70% of lost sales, improve online customer experience, and reduce churn, ultimately enabling the client to avert lost sales worth $90 million.