Toy House, a 67-store toy retailer in Eastern Europe, increased like-for-like sales by 10% and improved SKU availability to 98% after implementing LEAFIO AI's inventory optimization and demand forecasting software. The company also cut overstock by 19% and reduced lost sales by 26%, while automating order generation for its entire distribution network. Over four years, LEAFIO AI helped Toy House shift from manual Excel-based ordering to a fully automated, AI-driven replenishment process managed by just two planners.
Results at a Glance
| Metric | Result |
|---|---|
| Like-for-like (LFL) sales | +10% |
| SKU availability | 98% |
| Lost sales | −26% |
| Overstock | −19% |
| Automated (auto-generated) reorder rate | 72.1% → 96.2% (2018 → 2019) |
| Inventory planning team | Full 67-store network now managed by just 2 planners (previously multiple managers, 5–7 stores each) |
The Challenge: Manual Excel-Based Ordering Across 67 Stores
Toy House's 67 stores generate a high volume of SKU-level demand, and staying efficient in this fast-moving retail vertical requires strong automation. To keep its inventory management effective, Toy House set out to automate as much of its operations as possible — including registers, its online store, and warehouse operations — with a specific focus on stock optimization. The objectives were clear:
- Identify and eliminate overstocks
- Optimize the purchasing process
- Automate forecasting and order placement
- Create a structured process for new item introduction
- Increase turnover while reducing out-of-stocks and lost sales
«Numerous retail locations that carry a high volume of products cost us a fortune. That's why we partnered up with LEAFIO and implemented their Inventory Optimization software. We've been using this software for about four years now, and we're delighted with the results», — said Vlad, Toy House Co-Founder.
Before LEAFIO, Toy House's inventory management ran entirely on Microsoft Excel: each planner handled 5–7 stores on average, manually maintaining order schedules, forming supplier and warehouse orders, and managing internal distribution across the network. The process was labor-intensive and left planners stretched thin — especially during the New Year season, when demand, sales, and assortment spike sharply. As the network grew, it quickly outgrew Excel's row limits, and Toy House needed a tool built for automated, high-volume replenishment.
The Solution: AI-Powered Demand Forecasting and Automated Replenishment
Toy House adopted a pull inventory management strategy — a model driven by real customer demand rather than fixed order schedules. At the center of this shift was a new Distribution Center (DC), which became the central regulator of the entire supply chain: the single point of contact and transfer for all orders and inventory deliveries between Toy House's online and offline sales channels.
To support the new model, Toy House integrated LEAFIO's AI-powered demand forecasting software, improving forecast accuracy and adjusting inventory levels automatically in a highly volatile, seasonal market. The rollout combined automated demand planning with a fully automated replenishment cycle, reducing the manual workload that previously required a much larger planning team.
For the past four years, LEAFIO's customer success team has worked directly with Toy House to configure the system, roll out new features, and adapt reporting to the business's evolving needs.
«Well, honestly, I have no idea how they manage their sleep since they are on the call 24/7. The guys are very involved in the process. Initially, they did an extensive discovery phase before the project began», — said Vlad, Toy House Co-Founder.
Results: 10% LFL Sales Growth and 19% Overstock Reduction
Toy House prioritized three core objectives for its inventory optimization initiative: improving service levels, increasing product turns, and eliminating overstock. All three have been met, and the impact carried through the rest of the supply chain:
- Full order generation automation
- Structured, transparent order scheduling
- Supplier reliability assessment and reporting
- Assortment management and optimization, including analog product management
- Seasonal demand fluctuation management
- End-to-end analytics and reporting across the supply chain
LEAFIO's demand forecasting software uses machine learning to automatically calculate and adjust safety stock levels across all 67 Toy House locations in real time, based on current demand, order frequency, and market trends — including the seasonal New Year peaks that previously strained the old Excel-based process. This has helped Toy House keep shelves stocked at 98% SKU availability and cut overstock by 19%.
Between 2018 and 2019, Toy House's rate of automatically generated reorders rose from 72.1% to 96.2% — a shift that now lets the company's full replenishment cycle run with just two planners managing all 67 stores.
«Our supply chain has become a solid foundation for our marketing and online retail to ensure steady revenue for the business. To conclude, it is very important to choose the right automation partner since the entire project can either make you or break you», — said Sergey Zveryaka, Head of Supply Chain, Toy House.
About Toy House
Founded in 1998, Toy House is one of the leading toy retailers in Eastern Europe, with a nationwide footprint of 67 stores and an online store spanning 18 regions and more than 50,000 SKUs. Toy House has partnered with LEAFIO AI since 2017, using LEAFIO Inventory Optimization to manage demand forecasting and automated replenishment across its entire distribution network.
FAQ
How did Toy House improve inventory management with LEAFIO?
Toy House implemented LEAFIO AI's demand forecasting and automated replenishment software, increasing its automated reorder rate from 72.1% to 96.2% between 2018 and 2019 and reducing overstock by 19%.
What LEAFIO product does Toy House use?
Toy House uses LEAFIO Inventory Optimization, which combines AI-powered demand forecasting, automated order generation, and a pull-based replenishment strategy managed through a central distribution center.
What results did LEAFIO deliver for toy retail?
For Toy House, a 67-store toy retailer with over 50,000 SKUs, LEAFIO delivered a 10% increase in like-for-like sales, 98% SKU availability, a 26% reduction in lost sales, and a 19% reduction in overstock.
What was Toy House's main challenge before LEAFIO?
Before LEAFIO, Toy House managed inventory manually in Excel, with each planner responsible for 5–7 stores, which limited scalability during seasonal peaks like the New Year holidays.
How long has Toy House been using LEAFIO?
Toy House has partnered with LEAFIO AI since 2017, using its inventory optimization software to manage demand forecasting and replenishment across its 67-store network.
