Start Now! 
Follow these 5 steps.  Drive your inventory to a targeted, well-conceived ENDING INVENTORY level at the end of each month.

1. Determine the targeted annual inventory turnover rate your store(s) should have to be profitable and provide an adequate cash flow. (For free guidance, find your segment under the "Retail Benchmarks" tab.)
   
   
2. Next, convert that turnover rate into "days of supply"; i.e., 4.3 turns divided into 365 days in a year equals 85 selling days (of supply) or "one turn's worth of inventory".
   
   
3. Now, simply guesstimate your reasonably expected sales volume for an up-coming 85-day period.  (For example, 85 days from May 1st would be July 24.) What are the total retail sales you're expecting for that time frame?  That represents the "one turn's worth" of inventory (at retail) that you need to have on hand at any point in time.
   
   
4. That number - "one turn's worth" - now becomes your targeted inventory level (at retail, not cost) for the end of April.  Now you've got a goal, a definitive number to shoot for which is based on going forward safely.
   
   
5. But it's only as good as your ability to hit that target. Starting now, you can - and must! - drive down your inventory to hit that ending inventory goal.  Reduce prices, cut orders, give spiffs to your staff...whatever it takes. Now that you know what to do, we know you can do it.

And remember: Survival, without profit, through this recession is like halitosis; it's better than no breath at all!

Start Now! 
Follow these 5 steps.  Drive your inventory to a targeted, well-conceived ENDING INVENTORY level at the end of each month.

1. Determine the targeted annual inventory turnover rate your store(s) should have to be profitable and provide an adequate cash flow. (For free guidance, find your segment under the "Retail Benchmarks" tab.)
   
   
2. Next, convert that turnover rate into "days of supply"; i.e., 4.3 turns divided into 365 days in a year equals 85 selling days (of supply) or "one turn's worth of inventory".
   
   
3. Now, simply guesstimate your reasonably expected sales volume for an up-coming 85-day period.  (For example, 85 days from May 1st would be July 24.) What are the total retail sales you're expecting for that time frame?  That represents the "one turn's worth" of inventory (at retail) that you need to have on hand at any point in time.
   
   
4. That number - "one turn's worth" - now becomes your targeted inventory level (at retail, not cost) for the end of April.  Now you've got a goal, a definitive number to shoot for which is based on going forward safely.
   
   
5. But it's only as good as your ability to hit that target. Starting now, you can - and must! - drive down your inventory to hit that ending inventory goal.  Reduce prices, cut orders, give spiffs to your staff...whatever it takes. Now that you know what to do, we know you can do it.

And remember: Survival, without profit, through this recession is like halitosis; it's better than no breath at all!