A “strategic” alliance: Nixdorf and Montgomery Ward

In the early 1980s Montgomery Ward, one of the most renowned names in American retailing, was showing large losses. Its historic emphasis on mail order had long since failed and its merchandising policy had become unfocussed. In 1985 they set about “revamping” the entire group. Mail order was abandoned, and instead of a disorganised range of merchandise they sharpened the mix into clearly defined product groups — big ticket lines, garden furniture, children's wear all featured. In order to develop this strategy they needed, above all, rapid and comprehensive management information so as to get the inventory under control. The solution? An EPoS system supplied — not by one of the American giant suppliers on the doorstep — but by a leading European company, Nixdorf. Peter Newman went to Chicago to assess the nature of Montgomery Ward's radical change.