Reseller News

Kathmandu outlines ICT work program, eyes Dynamics ERP upgrade

Omni-channel retail requires ongoing systems investment, CEO says
Xavier Simonet (Kathmandu)

Xavier Simonet (Kathmandu)

ASX and NZX listed outdoors retailer Kathmandu is targeting significant ICT refreshes as part of its $21 million capex program for 2020.

Kathmandu managing director and CEO Xavier Simonet told investors on a call yesterday that the company's growth reflected the success of its omni-channel strategy.

For the first time, online accounted for 10 per cent of direct consumer sales during the year, up to nearly $50 million. Overall in 2019 Kathmandu's sales grew 9.7 per cent to $545.6 million.

"To achieve a successful omni channel strategy and enhance customer experience between all channels, we continue to have and invest year after year in new infrastructure and systems," Simonet told investors

CFO Chris Kinraid said the planned $21 million capex investment was "relatively even weighted" between the retail store network and systems. 

"As we mentioned earlier, there's some investment going on continuing with [warehouse management systems] WMS and a merchandise planning system and looking forward to ERP system opportunities as well," he told investors.

Kathmandu deployed Microsoft Dynamics AX five years ago and is now looking to upgrade the same system "to ensure on-going vendor support and maintenance", Kinraid told Reseller News.

"Firstly we are investing in our merchandise planning system in FY20 followed by a progressive ERP investment," he said.

Kathmandu's WMS is from Manhattan and is about to go live, Kinraid said. 

"For our online platform, Magento, we completed a major platform upgrade which went live in February 2019," he said. "This will enable improved online experience and distribution options going forward."