Norwich-based retailer QD Stores Group is planning a 35% expansion in the number of stores to 50 across the UK in 2010 and an IT-refresh based on SAP systems.
"The business needs to be more proactive and agile in an increasingly competitive value retail market," said Justin Farrington-Smith, managing director of QD Stores.
The retailer chose SAP to replace a bespoke system mainly because of the established SAP user community in the retail sector.
"We plan to piggy back of the experience of that community of users," Farrington-Smith told Computer Weekly.
Other important reasons for choosing SAP out of a final group of three contenders included scalability, integrated business intelligence and forecasting capability.
The retailer plans to use the SAP system to improve the efficiency of its distribution centre, increase visibility of stock levels and make the best purchasing decisions using information gathered from its new electronic point of sales system.
"We need to be able to make the best possible use of the information going into the Epos system to meet demand and grow the business," said Farrington-Smith.
"The importance of understanding which products will sell in which locations and gaining real-time intelligence on stock levels will become even more critical as the business grows," he said.
The business will also be able to analyse the effects of actions such as price reductions and shelf space allocations to see what works well and what does not.
The SAP system will enable QD Stores to link to suppliers in future to improve the efficiency of its supply chain.
"Past experience has shown that linking directly to suppliers works very well and this is in our long-term plan, although it is not part of the initial phase," said Farrington-Smith.
The SAP implementation, done in consultation with Wincor Nixdorf, is due to go live at the end of April.
"This is not something we could have done with in-house skills and we are planning a long-term relationship with Wincor Nixdorf to help get the most out of the investment," said Farrington-Smith.
The consultancy-driven approach ensures that the project will be completed as quickly as possible and at a fixed price, he said.