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It’s very common for retailers to have their fiscal year end be January 31. It’s after the Holiday season, and inventories are generally low.
Likewise, it’s also very common that retailers are taking (or having a service take) physical inventory this weekend or soon thereafter.
As we all know, counting inventory by hand is tedious, boring, expensive and, frankly, no fun at all. However, whether by hand, by barcode, by any method of technology, the inventory count matters, and it matters a lot!
Let’s review the Big Picture for this business doing $700,000 in revenue, with $290,000 in total operating expenses.
Will your sales less your expense goals add up to a profit?
Or are there surprises ahead?
Do you have a way to know throughout the year?
This retailer-friendly calculator lets you project whether your expectations for sales, margins, and expenses will deliver the profit you need.
Just in; published last month. The best financial data available! Annual Statement Studies from Risk Management Association for all NAICS industries.
The ROI’s Key Retail Benchmarks Charts are one of the most-used resources of The ROI. And for good reasons!
Presented visually, these compelling five year trend charts reveal how stores in each retail vertical are trending on key financial indicators: profitability; inventory productivity; financial strength.
The savvy retailers know that now is the time to be putting the finishing touches on being ready for – wait for it – December 26!
This unique time period between December 26 and January 10th is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 15 days!
First, the many opportunities to reduce expenses "back to normal." Less advertising cost. Less staff. Fewer hours.
Second, those people using Gift Certificates, making returns or exchanges are potential new customers. Likely, many of them haven't been in your store before. A great opportunity!
And third, the opportunity to clear out seasonal merchandise, generate cash, and move on to the New Year.
Christmas is two weeks away.
Time to focus on the “science” part, the numbers part, of “the art and science of inventory management.” The march has begun toward a vital, critical touchstone – your 12/31 targeted ending inventory level.
On that date, you must have appropriate inventory levels and mix for the months ahead – plus the cash to pay for it!
This is the moment an “ending inventory enforcer” must step up.
The prospect of tariffs from 10% to 60% being imposed on goods from Canada, Mexico, China, and other countries by the incoming Trump Administration is certainly contributing to headlines and attention. Another flexibility test for retailers.
Some retailers have seized on the uncertainty that has resulted. They are using the fear of tariff costs leading to higher retail prices to heighten the shoppers' sense of urgency.
Since 1999, you and people like you have supported the mission of The Retail Owners Institute® to “Eradicate retail bankruptcies,” one way or another.
We give thanks to you.
As you may know, the worldwide retail industry has the highest failure rate of any major industry.
Except for the lingering sugar high, Halloween is well behind us. Retailers know what that means: on to the Holiday Season!
Of course, for most retailers that brings a major focus on sales. But, savvy retailers are especially focused on the targeted ending inventory on December 31.
Those retailers are carefully watching sales reports, and are poised for action.
Each week, they identify "What's not selling yet?" And they do something about it! Move it around on the floor? Display it differently? Pair it with merchandise that IS selling? Lots of choices!
What About Markdowns?
What are we waiting for? The customers are here now. Do we really want to wait for January clearance sales?
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