SAS® Business Analytics Keep Spirits High at Midsize Wine Retailer

The Wine House Squeezes out Excess Inventory, Earns Back Investment in Less Than
Six Months
NEW YORK--(Business Wire)--
Less than six months after deploying its inventory management application, The
Wine House is toasting returns greater than its investment in SAS® Enterprise BI
for Midsize Business.

Using the solution from Business Analytics leader SAS, the brick-and-mortar and
Internet retailer discovered nearly $400,000 in "lost" inventory sitting on
warehouse shelves.

"The first day the SAS application was live, we identified approximately 1,000
cases of wine that had not moved in over a year. That`s significant cash tied up
in inventory," said Bill Knight, owner of The Wine House. The 30-year-old firm
counts on fully turning over inventory seven times yearly. "We had a huge sale
to blow it out, and just in time, because in today`s economy, we would be
choking on that inventory."

A midsize business with annual sales of $20 million and 38 employees, The Wine
House has no IT department and limited resources. Knight`s point-of-sale system
could provide neither inventory query and reporting nor management by price
points. He knew that business analytics could provide answers.

"I learned what SAS could do for me at a retailing conference, but I needed help
installing and managing it. That`s where SAS` channel partner came in," said
Knight.

"SAS Alliance member Modern Analytics built an Internet portal where our buyers
can log on and see what price points are turning over," he explained. "We can
also see which suppliers are the most effective. Today, for example, $20 bottles
sell a lot better than $100 bottles."

Knight and Modern Analytics now plan to exploit the extensive customer data
accumulated by The Wine House, using SAS Business Analytics to understand
customer behavior and drive sales and profitability. The first step: track
changes in customer sales and visits to better target marketing and advertising
programs.

"Business analytics provide solid value for organizations of many sizes," said
Jim Davis, Senior Vice President and Chief Marketing Officer of SAS. "The Wine
House has quickly benefited from SAS and clearly sees more value to come by
applying business analytics to customer-facing applications."

For more information about SAS® Retail Intelligence Solutions, visit
http://www.sas.com/industry/retail/. SAS is demonstrating its retail
intelligence solutions at the NRF 98th Annual Show and EXPO in Booth 1337.

About The Wine House

The Wine House has been serving customers from around the world for more than 30
years from its 25,000 square foot facility in Los Angeles, providing a unique,
exciting shopping environment for clients ranging in wine experience from the
complete novice to the connoisseur. The vast selection of more than 7,000
domestic and imported labels is one of the largest and most discerning in the
country. For more information, please go to www.winehouse.com.

About SAS

SAS is the leader in business analytics software and services, and the largest
independent vendor in the business intelligence market. Through innovative
solutions delivered within an integrated framework, SAS helps customers at more
than 45,000 sites improve performance and deliver value by making better
decisions faster. Since 1976, SAS has been giving customers around the world THE
POWER TO KNOW®.

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indicates USA registration. Other brand and product names are trademarks of
their respective companies.Copyright © 2009 SAS Institute Inc. All rights
reserved.

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