Inventory Control | Buying Plans | Open-to-Buy

"Have enough inventory?"

Most retailers know their average inventory over the year. But the question is this: 

"Is that enough inventory for the sales you expect?"

"Or...is it too much?"

Here's how to find out. Use our "Inventory Gadget." Quickly compare your inventory productivity to the median performers in your retail segment. How do your sales compare?

Do your stores have higher sales volumes than the median retailer with the same levels of inventory? 

• That suggests that your inventory turns would be in the Top Quartile of retailers in your segment.

• It also is likely that you are very cash flow positive!

Wow! Nice to get some perspective, isn't it? 

To get even more perspective on your store's performance compared to others in your retail segment, see the Benchmarks here at The ROI.


But...what if, with the same amount of inventory, your sales are lower than the median performing retailer in your segment? 

• That likely means your inventory turns are lower than the median retailers. 

• It also suggests that a cash crunch may be looming.

Oops. Good to have a hint about that in advance, isn't it? 


So, Now What?!

For your stores to operate like the median performers, consider the two drivers: annual sales; inventory levels. Then decide: Is it better to try to grow sales?  Or focus on controlling inventory? 

Which is more plausible for your stores? More likely to be achieved? More controllable?


Every retailer will have different answers to those questions. Do not bog down at this stage! 

Make a choice, and make it happen. The goal: take advantage of the lead time!

 

Inventory Management Quiz

Take this online quick quiz for retailersJust ten questions. All online, all at your own pace. 

Just click the GO button, and you're on your way!

Test yourself as often as you wish. Immediate feedback, too, of how well you did. Get your overall score, and can review each question, see your answer, and the correct answer.

The ROI's Quick Quiz on the P&L

How ready are you to be a true merchant?

Take the quiz!

Specifically for Retail Situations | Practical, Proven, Timeless | Used and Loved by Thousands of Retailers

Merchandise Planning: Back to the Basics

Sound merchandise management is crucial for the survival and prosperity of your retail business. 

It’s not just another “paper exercise”—it can mean the difference between strong, positive cash flow or a constant battle to pay your bills. 

It can keep your operation profitable even in times of less-than-robust sales.

read more here

 

How to Shape Up Your Inventory? Manage Inventory Turns

If your store is like many other independent retailers, it’s probably overstocked much of the time. 

This excess inventory is like excess fat: 

  1. It looks bad
  2. Consumes energy the inventory “muscle” needs
  3. Threatens the financial health of your business.

If you’d like to time your inventory flow so you always have fresh merchandise and a healthy turnover rate, consider this shape-up plan. 

It will help trim away excess inventory without cutting into the muscle of your stock.

read more here


The Diamond of Doom

The High Costs of Excess Inventory

As a retail owner, one of your primary goals is to boost profit margins—right? 

You know that good inventory management is essential to producing top-notch profits. 

You also know that bad inventory management can cause big problems with profit. 

However, you may not know the actual cause-and-effect of bad inventory management. 

read more here

 

 

How to Cut Inventory – Fast!

Is excess inventory threatening your store's survival? 

Here are 10 tips to turn your inventory into cash – quickly!

Sometimes retailing doesn’t quite turn out as you had planned. 

Did last year fail to live up to what you predicted—and budgeted for? 

Did you overestimate the popularity of your generous order of a particular product?  

Are there areas of your inventory brimming with overstock? 

Relax! There is a way out of this mess!

If you find yourself long on inventory and short on profits—whether from overbuying, expanding lines too quickly, or overestimating sales, don’t panic. 

You still can whip your inventory back into shape before it devours your profits.

read more here



Getting Through the Retail Maze with GMROI

(Gross Margin Return on Inventory Investment)

One of the best tools for measuring and managing the productivity of your inventory investment is GMROI - Gross Margin Return on Inventory Investment. 

It's fast and easy to calculate. 

It is dynamic (some call it the "earn 'n turn" measure.)

Best of all, it provides powerful insights specifically for retailers.

That's why The ROI calls GMROI "the #1 measure of inventory productivity."

read more here

 


Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"



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