Kirkland’s: The Value of a Vanilla Implementation

Bob Kagenski

Director of Business Systems

Kirkland’s

What About Bob?

• Bob Kagenski – Director of Business Systems

• 12 years

• Application Areas Supported• Merchandise

• Planning & Optimization

• Oracle

Safe Harbor Statement Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Kirkland’s believes that the forward-looking statements in this release involve reasonable expectations, it can give no assurance that such expectations will prove to be correct and such statements of expectation should not be unduly relied upon. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Kirkland's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties include, among other things, the competitive environment in the home décor industry in general and in Kirkland's specific market areas, inflation, product availability and growth opportunities, seasonal fluctuations, and economic conditions in general. Those and other risks are more fully described in Kirkland's filings with the Securities and Exchange Commission. Kirkland’s disclaims any obligation to update any forward-looking statements or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

About Us

• Founded in 1966 by Carl Kirkland

• Headquartered in the Nashville, TN area

• 594.3 million in sales in fiscal 2016

• 395+ stores in 35 states

• 7,000+ employees

• 9-12,000 active products across web and store channels

• Multi-channel specialty retailer of home décor and gifts

The Kirkland’s Stores Be part of a different kind of store: one that values creativity, collaboration,

and above all-fun

Merchandising Principles

• Unique merchandising strategy

• Emphasis on key items

• Product reflects current styles, but not a trend leader

• Strong value proposition

• Collaborative product development

• Constant flow of fresh and unique merchandise

• Ever-changing mix

Merchandising Principles

• Approx. 3,500 to 4,000 SKUs per store

• Traditional style

• Significant selling space devoted to gifts and seasonal merchandise

Art

Holiday

Wall Décor

FurnitureDecorative

AccessoriesFragrance

Lamps

Mirrors

Floral

Textiles

Frames

HousewaresImpulse

Outdoor Living

ClocksAccessories

The Store Experience

• Convenient: off-mall

• Inviting: visually inspiring, “escape”

• Fun: new products, exciting promotions

• Empowered associates

Supporting Omnichannel

• Launched in November 2010

• Direct-to-customer delivery and in-store pickup

• Managing inventory for all channels

Scope of Implementation

• Oracle Retail Merchandising System

• Oracle Retail Sales Audit

• Oracle Retail Price Management

• Oracle Retail Merchandise Financial Planning

• Oracle Retail Assortment Planning

• Oracle Retail Item Planning

• Model Stock

People and the Program

Bob Kagenski Director of

Business Systems

Senior Business Analyst

Senior Business Analyst Quickborn

Oracle Support

Project Specific Consultants

How many have never done an Oracle upgrade?

How many have done more than one Oracle upgrade?

By a Show of Hands

• How many Pre Version 10

• Version 10- 12

• Version 13 – 14

• Above Version 14

Phase I - Merchandise

• Go Live - Oct 1, 2012

• Retail Merchandising Systems

• Retail Sales Audit

• Retail Price Management

• Over 75 interfaces developed

• No Changes to UI

• Installed 2 triggers on Oracle RMS tables

• Several New Indexes on tables

• 3 Bolt-on’s

Phase II- Planning & Replenishment

• Start February 2013

• July 2013- Merchandise Financial Planning /LP

• August 2013 -Replenishment

• September 2013- Assortment Planning /Item Planning

13.1.7 Upgrade

• Delivered 3/17/2013

• 3/20 Upgrade Dev

• 4/1 Smoke test and tested 51 SR

• 4/4 Upgraded TST

• 4/11 Smoke test and tested 51SR

• 4/15 Started UAT

• 4/29 Completed UAT

• 5/25 Upgraded Production

• Upgrade finished 11 hours

• Currently have 5 SR

• Very Successful

14.1 Upgrade

• Dec 15 Upgrade Dev

• Jan 16 Dev Smoke test and tested 51 SR

• Mar 16 Upgraded TST

• May 2016 Started UAT

• June 2016 Completed UAT

• June 2016 Upgraded Production

• Upgrade finished 4 days

• Currently have 5 SR

• Upgrade Database 13.2, 13.26, 14, 14.1

• First test – 1 week to upgrade database

• Allocation Security

Business Benefits of Vanilla

• The ability take advantage of the investment Oracle is making in the product.

• Kirklands plans to use a current system for 20- 30 years for the small cost of upgrade cost and maintenance fee

• New Features

• New Technology

• IT staff is a smaller foot print.

Recommendations

• Set expectation from Selection

• Ensure management understand the value of Vanilla

• Have the support from the top

• 80/20 Rule – throw out the exceptions

• Is there a “Real” Benefit

• Partner with your Oracle Support liaison

• Become Involved – ORUG and CABs

Questions?