See how turnover is dramatically related to your profits?! When turnover is properly focused on, it produces more sales by keeping a fresh flow of new merchandise coming into your store. As well as increasing margin dollars. Maximizing turnover reduces markdowns . When turnover is too slow, the results are excessive markdowns – poor cash flow – higher operating expenses – and even lost sales! Inventory and sales determine turnover. Improvements in payroll, rent markups, and freight are controlled by competitive or fixed expenses. But turnover is directly within your control! And should never be neglected. All of which helps explain why Michael Gould, when Chairman of Bloomingdales, so famously exclaimed to his buyers: 'No retailer ever went bankrupt because their turns were too high!' The ROI is wondering: If you really want to grow profits, are you focusing enough attention on your inventory turnover?