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Additionally, they oversee promotional strategies, ensuring that discounts and marketing initiatives align with both retailer objectives and supplier funding. Without clear visibility into market dynamics, they risk misaligning pricing strategies, missing gaps in assortment, and failing to optimize category-wide profitability.
It is not enough to keep filling up your stores, as it can only result in heavy markdowns, slow inventoryturnover, higher operating costs, and disruptions to cash flow. 4 Monitor your operating expenses You can have a strong marketing strategy, yet this will be ineffective if your operating expenses are above the roof.
Indicators you’re managing bad inventory. You may be dealing with a bad inventory if you are continuously having one or more of the following issues: 1. Drastic Markdowns. Last minute markdowns that offload stock at a loss. A low rate of inventoryturnover. No room for in-demand inventory .
Challenges in Demand Forecasting Leading to Lost Market Share. Retailers who rely on approximated demand disappoint customers, bleed profits, and lose market share to more tuned-in competitors. Planning inventory based on sales history depends on a logical approximation. Reduced markdowns. Increased inventoryturnover.
A small mistake, such as misplacing a decimal point or linking to the wrong cell, can lead to inaccurate sales forecasts, incorrect inventory allocations, or miscalculated markdowns. Lack of real-time data Traditional methods dont provide real-time insights, making it difficult to adjust strategies based on current market trends.
Jump Ahead Most Important KPIs for the Retail Industry in 2020 Examples of Retail KPIs that Maximize Inventory ROI 1. InventoryTurnover Ratio 3. Retailers must maintain a healthy In-Stock Percentage for every product at every store, in order to avoid out-of-stocks, lost sales, failed promotions, and costly markdowns.
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