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Customer Story

Hickory Farms transforms for growth

Leading specialty food retailer achieves expansion for both retail and online sales

Results

Automated tax calculation

Increased reliability

Reduced manual intervention

Company Overview

Since 1951, Hickory Farms has been a leading retailer of food gifts and specialty foods online, in catalogs, with mass merchants and supermarkets, and in more than 200 seasonal, retail shopping locations.

Tax challenges

The company needed a scalable, cloud-based infrastructure to support expansion, along with reliable, real-time tax calculation across both in-store and shipped orders. It also required a way to manage differing taxability rules for food and non-food items, as well as better visibility and control over exemption documentation.

 

Hickory Farms sells a wide assortment of specialty foods and gift boxes, often combining food and non-food products in a single transaction. Because taxability rules vary by jurisdiction and product type, determining the correct tax treatment can be complex. The company’s omnichannel model — which includes retail stores, ecommerce shipments, catalog sales, and partner transactions — further increased this complexity, as each channel introduces distinct tax calculation and reporting requirements.

 

As the business modernized its systems and deployed Microsoft Dynamics 365 Finance on Microsoft Azure, transaction volumes grew and customer expectations for seamless experiences increased. Manual processes and legacy tax workflows created inefficiencies and heightened the risk of inconsistent tax calculation, particularly during high-volume holiday seasons. Hickory Farms needed a scalable, cloud-aligned solution capable of delivering real-time, reliable tax calculation across channels while reducing administrative burden on internal teams.

Why Avalara?

As part of its cloud transformation, Hickory Farms selected Avalara to automate sales tax compliance within its Microsoft Azure environment. Avalara AvaTax, available on Microsoft Azure and through Microsoft Marketplace, aligned with the company’s modernization strategy by embedding automated tax determination directly into its ERP workflows.

 

With AvaTax integrated into its Dynamics 365 Finance system, tax calculation occurs in real time as transactions are processed, improving consistency and reducing reliance on manual intervention. Avalara Exemption Certificate Management further strengthens compliance by helping the company collect, store, and manage exemption documentation more efficiently.

 

"We wanted one system that could do everything well — a few things very well — and we wanted it to be cloud-based. The teams involved with our tax compliance upgrade have been incredibly responsive, and they work great together," says Jason Byrnes, Controller at Hickory Farms. By leveraging Avalara cloud-based solutions, Hickory Farms gained a tax compliance framework designed to scale alongside its expanding business while maintaining dependable performance during peak demand.

"Moving our systems to the cloud gave us the flexibility we needed to support growth.  With AvaTax on Azure integrated into Dynamics 365 Finance, we have more confidence in the consistency and reliability of our tax processes across channels."

  • — Jason Byrnes,
  • Controller

 

Results

With Avalara in place, Hickory Farms has strengthened tax accuracy and operational consistency across all sales channels while reducing manual intervention. Automated processes reduce manual effort and minimize risk, allowing internal teams to focus on strategic initiatives rather than tax administration.

 

The company is now better positioned to support expanding product offerings, new sales scenarios, and increasing transaction volumes without adding tax complexity. By combining Microsoft Azure, Dynamics 365 Finance, and Avalara automated tax solutions, Hickory Farms has built a scalable compliance foundation that supports continued modernization and long-term growth.

Ready to see what Avalara can do?

Schedule a demo to see our solution.