How Melissa & Doug Grew Sales and In-Stocks with POS Analytics in Alloy.ai
For nearly four decades, Melissa & Doug has been a leader in educational and imaginative play, known for its high-quality wooden toys and games. However, as the brand expanded its presence across major retailers, the company faced increasing challenges in managing and leveraging point-of-sale (POS) data to drive business decisions.
To stay ahead, Melissa & Doug turned to Alloy.ai — a move that transformed their approach to data analytics and unlocked new growth opportunities.
David Henderson
Chief Commercial Officer (Former)
The Challenge: Navigating Complex Retail Data
Like many growing brands, as Melissa & Doug continued to scale, its sales and commercial teams found themselves drowning in fragmented POS data from multiple retail partners. Data latency, inconsistent reporting formats, and a lack of real-time insights made it difficult to respond to shifts in demand or identify emerging trends.
“Before Alloy.ai, we were spending so much time just gathering and cleaning data that by the time we had something actionable, the moment had passed,” said David Henderson, former Chief Commercial Officer at Melissa & Doug. “We knew we needed a better way to access and use our retail data.”
Without a centralized, real-time view of sales performance across retailers, Melissa & Doug struggled with:
- Poor on-shelf availability as some popular products had in-stock percentages around 70-percent at major
retailers - Slow response times to changes in demand, leading to missed opportunities
Inconsistent data formats making it difficult to analyze trends efficiently
Limited visibility into store-level performance, impacting inventory planning
The Solution: A Unified View of Sales & Inventory
Melissa & Doug implemented Alloy.ai to unify, analyze, and act on its POS data in real time. The platform aggregated data from multiple retail partners into a single, intuitive dashboard, providing:
Automated data integration across retailers, eliminating manual data processing
Real-time visibility into store-level and SKU-level performance
AI-powered insights to optimize inventory allocation and prevent stockouts
“Alloy.ai turned our data into a competitive advantage,” Henderson noted. “Instead of reacting to problems, we’re now proactively identifying opportunities and making decisions with confidence.”
The Results: Faster Decision-Making, Increased Sales, and Improved Retail Execution
Since implementing Alloy.ai, Melissa & Doug has seen measurable improvements in operational efficiency and sales performance. Key benefits include:
Faster insights: The sales team now has immediate access to up-to-date POS data, cutting decision-making time from weeks to hours.
Optimized inventory planning: By identifying demand shifts early, Melissa & Doug has reduced stockouts and improved on-shelf availability.
Sales growth opportunities uncovered: With clearer visibility into retailer performance, the company has capitalized on new opportunities to drive incremental sales.
“The impact has been tremendous. We’ve not only streamlined our internal processes but have also strengthened our retail partnerships by delivering data-driven recommendations that benefit both sides,” Henderson added.
Conclusion
For brands like Melissa & Doug, having a clear, real-time view of retail sales data is no longer optional—it’s essential. Alloy.ai provided the tools to transform data into actionable insights, allowing Melissa & Doug to grow smarter and faster in an increasingly competitive market.
If your sales and commercial teams are struggling with POS data challenges, Alloy.ai can help you gain the clarity and agility needed to drive success. Schedule a demo today to see how Alloy.ai can revolutionize your approach to retail data analytics.