Category: Inventory Management

Expecting Judgment from Computer Forecasts? Really?

6/27/2022

"How are sales?" is essentially the international greeting between retailers.

And because of the seasonality of retail sales, most retailers will respond by explaining whether sales this month are up or down versus the same month last year, not just the previous month.

All this is well and fine in a normal year. But, since 2020, retailers have not been experiencing anything close to normal. And boy, does that show up in the 6-month retail sales trend charts that The ROI posts each month.

In sector after sector, December, January & February sales versus the prior year are markedly different than the March-April-May results. In some cases, these are quite dramatic.

Your results are likely to be consistent with these patterns.

"Unprecedented." What? Again??

6/6/2022

Consider these front-page headlines and the accompanying chart (see above) from the June 6 Wall Street Journal* – "Surplus Inventory Piles Up", "Stores Are Stuck with the Wrong Items."

Look at it carefully, and think of your operation in comparison. How do your numbers compare? Are you as shocked as we are?

How did this happen?

Partly as responses to the unprecedented impacts of the pandemic.

Getting in Shape for Musical Chairs?

5/23/2022

The playing field has shifted dramatically under the feet of retailers.

Merchandise orders placed months ago are now proving to be "too much stuff that consumers no longer want so much of," as was reported rather colloquially just 3 days ago. All this was summed up this way: "Retailers with slower inventory turns might find current conditions especially difficult to navigate." *

Now, look at the chart at the top of the page. Without being dramatic, it may be a lifesaver for your business this year.

It's Award Season. And your winners are...?

3/21/2022

"And the award goes to...."

No, Not About People This Time
While we typically think of people as recipients of recognition – and we trust you already are doing that, right? – this is a different challenge.

Ready? Here we go! Of your merchandise, which products are Award Winners?!

Vital Formula for Every Retailer

11/29/2021

Be strategic: All you need is a pencil

The #1 responsibility of every retailer is to manage and control the inventory. By doing that, you are managing margin, profit, cash flow...also known as success!

Managing inventory demands a merger of art – the selection of merchandise – and science – the quantity of merchandise at any given time.

And here is a formula that makes the science part accessible for every retailer. All you need is a pencil to do this (remember those?) And it can and should be embraced by every retailer!

Time to Go "Turkey" Hunting

11/22/2021

Thanksgiving time in the U.S. is not a good time to be a turkey.

And, the week after Thanksgiving is obviously not a good time to try to be selling turkeys, or turkey dinners. Especially at full price.

The same thing applies to your inventory! Especially with all the challenges and distractions surrounding supply chain issues, there could be lots of "turkeys" languishing in the inventory in your stores. You know; non-selling, distressed, old, unappealing leftovers among your merchandise.

We See a Train Wreck Coming; Do You?

10/18/2021

What a scenario. Shoppers buying vigorously, retailers joyously raising sales expectations, and many more anxious lenders offering "cash in 24 hours!" to business owners.

Wow! Are these the good times, or what?

Forgive us, but today we're focusing on the "or what?" aspect.

Buyers Beware!

4/26/2021

We often caution that many vendors are so much better trained at selling than retailers are trained at buying. In their eagerness to grow sales, and the associated promise of thereby growing profits, it is all too easy for retailers to become overbought. Instead of higher profits, they can find themselves in a cash flow crunch.

And that was in Before Times, before the pandemics. Throughout 2020 and continuing now, vendors and retailers alike have increased their online capabilities. Ordering online brought new challenges to buyers and sales reps, but also saved time and improved access.

We have applauded these advances in technology, but...

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Be strategic: All you need is a pencil

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