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Friday, December 14, 2018

From The Co-Founders

Ready to step up?

It's mid-December. This is the moment an “enforcer” steps up. No, this time we’re not referring to sales or customer service or better displays.

It’s that the march toward your 12/31 targeted ending inventory level has begun.
  • Ahh yes. Inventory at 12/31 is a vital, critical touchstone. It prepares your store for the months ahead.
  • But, it’s most useful for using Holiday traffic to get rid of any and all excess any markdowns it takes!!!
And here's a quick and easy – and free! – way to know what that target ending inventory number should be. By department. It's all based on your turnover rate for each department. 

Here's how it works:
  • For each department, convert the turnover rate into months of supply. 
    For example, 4 turns divided into 12 months in a year equals 3 "months of supply of inventory @retail", what we call "one turn's worth".
  • Add up "one turn's worth" of sales.
    For example, at 4 turns: add up your expected sales volume for the up-coming 3 months: January plus February plus March for that department. 
That represents the "one turn's worth" of inventory (@retail) that you need to have on hand on December 31.
  • Do this for each department.
    Now you have a targeted inventory level @retail for December 31 for each department.
  • Next, total it up.
    Compare that target with your inventory on hand @retail right now, plus all on-orders, minus  realistic sales.
And now, the crucial test:
  • Are you on track to hit the year-end inventory target?
  • Or, are there some adjustments you need to make? Like much sharper markdowns? Or canceling or delaying orders? Or...??
Nice to know that now, right? 

A worthy enforcer (ahem, that would be YOU!) will monitor this process two/three times a week through December.

Customers are available! But time is running out. Tick tock. Tick tock. Do not miss out on this golden opportunity!

Latest Monthly Sales Trends

You know your monthly sales versus last year, right?

Now, compare your trends to other retailers in your segment 
MONTHLY Sales Trends

The ROI's "Nine Stepper" for Do-It-Yourself Forecasting

There are 3 kinds of retailers:
  1. Those who MAKE things happen
  2. Those who WATCH things happen
  3. Those who say, "Um, what happened?!"
Why are those who are in the first group - the retailers who make things happen - able to be so purposeful? Where does their confidence come from?

Their ability to look ahead. To preview the outcome. To understand, in advance, "What would happen if I...?"  

Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute, have developed a clear, step-by-step process to accomplish all that, specifically for busy retailers. They call this powerful projecting approach – wait for it – The Nine Stepper.

In their lively style, Pat and Dick share this unique process in this week's TOPICAL TUESDAYS Webinar of the Week.

While this is an advanced retail financial management technique, like all the TOPICAL TUESDAYS sessions, it is packed with empowering consulting tips as well.
Sophisticated? Actually, yes it is. 
Complicated? Not anymore! 
Powerful and empowering? Absolutely!
Free Access Now

Retail Business Insights

What DO customers really want?

Consider this: people don’t go to a hardware store because they want a 3/4” drill. They want a 3/4” hole! 

Like that, your customers aren’t coming to you for products; they’re coming for solutions.
  • What are the benefits you can provide them?
  • What problem are they trying to solve, and how can you help them do so better, faster, more effectively?
As an executive at Revlon once said, “In the factory, we make cosmetics. In the stores, we sell hope!”

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