Photo: © RetailTrends.nl
How Kilo Kilo Makes Resale Retail Scalable
Recommerce is on the rise, but selling vintage items also presents retailers with operational challenges. Every item is unique, and inventory is unpredictable. Kilo Kilo also operates on a per-kilo pricing model. Yet the chain has cracked the code and is scaling up quickly. Read on or skip straight to the highlights.
Challenge
- Each item is unique and sold by the kilo: there was no standard approach to this concept in the apparel industry.
- Rapid expansion to eleven stores called for a standardized and financially sound retail model.
- Decisions such as when to stock new merchandise followed industry standards, not the company’s own figures.
Solution
- A Tilroy point-of-sale system with a scale, set up by Kilo Kilo itself with configurable action buttons, without any customization.
- A single cloud platform where the point-of-sale system, inventory management, and the complete customer history come together in real time, across all locations.
- A custom Kilo Kilo dashboard built on top of the Tilroy data, and an automated cash flow from the POS to accounting.
Benefit
- See in real time, by location and by category, what’s being sold, where, and when.
- Focus on sales per square meter and the ratio of visitors to sales, and choose the best time to stock the shelves yourself.
- A new store is ready to go after just one phone call, with a platform that scales as you expand into Europe.
Vintage as the Norm
Vintage clothing is increasingly shedding its stuffy image. A growing number of people are choosing this generally more affordable and sustainable alternative to new clothing. And that is precisely Kilo Kilo’s mission: “We want vintage to become the standard and are trying to make it accessible to as wide an audience as possible,” says national retail manager Rijk Versluijs. “We do this by offering an inspiring shopping experience and by setting up shop in prime locations, right next to fast-fashion brands. That way, we also hope to reach people who might not otherwise be so quick to step into this type of store.”
Whether it’s a grandmother who finds the blouse she once wore herself or her granddaughter looking for a pearl to express her own identity—everyone is welcome at Kilo Kilo. “Customers will find a wide selection of both American and European vintage clothing, as well as various styles and influences from different eras, all at competitive prices,” Versluijs continues. In keeping with the concept, clothing sells for 35 euros per kilo. “In addition, we now offer a curated clothing section—a special selection of pieces that we source separately and for which customers pay a fixed price.”
Scaling Up to 11
The fact that Kilo Kilo operates only brick-and-mortar stores is, in a sense, a logical choice. Especially for the passionate treasure hunter, nothing beats browsing the racks in person. “We also believe you should be able to feel the fabric and try on clothes right in the store—with personalized advice from our staff, who are just as passionate as our customers and fully support our mission,” says Versluijs.
According to the retail manager, there’s a lot of excitement whenever a new Kilo Kilo store opens. This was also the case recently, when the chain opened the doors to its 11th location in Utrecht, the city where it all began for the retailer during the COVID-19 pandemic. Since its launch in 2020, the company has expanded rapidly, and its stores can now be found throughout the country.
Still, scaling up was no easy feat. “The apparel industry has been around for a long time, but there was no concrete plan for our approach with unique items and a price-per-kilogram model. Precisely because of all the variables, standardization is essential, because only then can you figure out which combination results in a financially healthy store,” Versluijs continues. “In practice, that was mainly a matter of testing. We investigated how many kilograms need to be sold, how many square meters we need for this, and what the best locations are. Among other things, we discovered that we benefit from having more square meters so that the selection is broad enough to maximize sales. Now we have a model that works.”
Data-Driven Decision-Making
An important part of that standardization is a data-driven approach. These days, Kilo Kilo also has a crystal-clear understanding of which product categories are selling better in Amsterdam than in Nijmegen and which items are performing better in Maastricht than in Utrecht. According to Versluijs, by using sales data, the retailer can much more effectively manage performance indicators such as sales per square meter and visitor numbers in relation to sales patterns.
At the heart of this new way of working is a new software platform where data streams from the point-of-sale system, inventory management, and the complete customer history converge and are integrated. All data is viewable in real time, across all locations. The solution was developed by Tilroy, which provides cloud-based software solutions to retailers in the non-food sector. Kilo Kilo then developed its own dashboard based on this solution.
A checkout counter with a scale
The starting point at Kilo Kilo was a cash register with a scale, says Vincent Gaillard van Tilroy. “That’s not common in non-food retail, but it’s crucial for this concept. Thanks to the configurable action buttons in the register, Kilo Kilo was able to set up the concept entirely on its own; nothing had to be developed from scratch. Our platform serves as the foundation for all of the chain’s store, product, and customer data. The scale adds an extra layer to that, so to speak, enabling Kilo Kilo to manage and report on its own concept across all locations."
Better insight
In day-to-day retail operations, this means that Kilo Kilo can always see how much clothing is being sold in specific categories, where that’s happening, and when. How is this different from before? “We make business decisions based on numbers and data that weren’t readily available before,” says Versluijs. “At the end of the day, we see exactly where the peaks and troughs are so we can make operational decisions based on that. The apparel industry is seasonal. In the past, we followed the industry’s lead when it came to stocking the shelves. Based on our data, we now make those kinds of decisions ourselves and choose the moment that yields the best results. With data, you can substantiate certain considerations and also motivate each other to strive for better performance.”
Ready for Further Growth
Thanks in part to Tilroy, Kilo Kilo operates entirely digitally; not only does it provide real-time reporting for each location, but the stores are also completely cashless, and there is an automated cash flow from the register to accounting. This enhances efficiency and supports the company’s growth ambitions. Because, according to Versluijs, this is by no means the last we’ll be hearing from Kilo Kilo. “We’ve gained a foothold, but we still see plenty of opportunities for expansion. Eventually, we also want to enter the European market. Our latest store was ready to go after just one phone call. It’s great to work with a partner who thinks along with you and who you know has no limits.”
This article was previously published on RetailTrends.
About Kilo Kilo
Kilo Kilo is a Dutch vintage chain that launched in Utrecht in 2020 and now has eleven stores spread across the country. The stores are located in prime locations and sell American and European vintage clothing for 35 euros per kilo, complemented by a curated section with fixed prices. Their mission: to make vintage the norm for as wide an audience as possible. Find out more at kilokilovintage.nl.
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Photos: © RetailTrends.nl
