Retail Merchandise Management Tip

Tip #404 - Get Fit and Trim

 

 

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Consumer confidence is slowly picking up, but months of meager spending by your customers may have left your inventory levels a bit... bloated.

Here are 5 things you can do today to take corrective action and get your stock levels fit and trim.

Cancel Orders
Nobody's favorite, but if you've got merchandise on order that you don't need or can't afford, you should cancel those orders.

Trim Orders
Sometimes it's enough just to trim orders by completely deleting a few items on the PO or by decreasing quantities on all items across the board. Need 20% less merchandise? Trim your orders by 20%.

Adjust Ship Dates
If you've got merchandise on order that you don't need right now, but could use in a couple of months, push back your ship dates.  This technique works well for basic best-sellers, but not well on seasonal stuff or fashion merchandise that you either take when the vendor ships - or you don't get it.

Take Markdowns
Markdown the stuff that's clogging up your inventory and turn it into cash! There are lots of ways to make markdowns effective - read my Top Ten Markdown Tips in this article.

Increase Sales
This is probably the best (and most often overlooked) way to lower your inventory levels.  Increase your marketing efforts this month - watch your sales go up and your stock levels go down.

Individually, each one of these techniques can help you get your stock levels under control.  But if you use, two, or three, or all five at the same time your results will be quick and nearly painless!

It's like trying to lose weight by exercising VS. exercising, and eating less, and eating lower calories foods. The techniques work better and faster in combination.

Also like managing your weight, staying thin in the first place is better than having to shed the pounds later. Run a tight Open to Buy plan and you won’t order or own more merchandise than you need in the first place.

Do you have an Open to Buy plan in place? If not, this article is a start...

 

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Learn how you can:

  • Increase Your Sales
  • Lower Your Expenses
  • Reduce Stress
  • Have the Store You've Dreamed Of

 

Check out The Retail Mastery System

 

 

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