Retail Dogma

inventory

Product Mix

A product mix is the complete range of products offered by a business. It is also referred to as product assortment, and consists of all the product categories or product lines presented to the customer. Example A fashion boutique could have a product mix that consists of: Tops Bottoms Footwear Accessories Each of those lines …

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Clearance Sale

Clearance sale is a markdown event that retailers use to clear the remaining merchandise at very low prices. Sometimes the price levels at this stage of markdown can be even below the cost price of the product. What is The Difference Between Sale & Clearance? Clearance is a type of sale event with a further …

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Broken Sizes in Fashion Retail

Broken sizes is a term used by fashion retailers to describe an assortment that does not have full size range anymore, due to the sell out of some sizes. When a retailer launches a line of clothing it initially launches in full size range. After a while of displaying it on the floor and selling …

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Inventory Allocation in Retail

Inventory allocation is the process of assigning specific products, in specific quantities to be delivered to store locations, where they will be displayed and sold. Inventory allocation is typically done by the merchandiser or the inventory controller, and is uploaded on the retail merchandising system to be seen and actioned by the warehouse team. When …

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Replenishment Systems in Retail

Replenishment systems in retail are systems that are set in place to ensure every product that gets sold at the store is restocked, so that the store does not get into an out-of-stock situation while the products are available at the warehouse. Note: We are not talking here about purchasing or retail buying. This process …

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Average Inventory

Average inventory is usually used during the calculations of different inventory metrics that are used to assess the efficiency of inventory management practices at a company. What is Average Inventory? Average Inventory is the average value of inventory that a company holds over a certain period of time. This period could be a month, a …

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Days Sales in Inventory

Days Sales in Inventory (DSI) measures how many days it takes to sell the company’s inventory. It is used together with other metrics like inventory turnover ratio and GMROI to track how efficiently a company manages its inventory. While a low DSI can be positive or negative; ie it could mean that either the company …

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Why Do Retail Stores Have Sales?

Retail & ecommerce managers sit every year during budgeting season and plan out their next year’s events calendar. In this calendar they plan their sales events, as well as other seasonal launchings or any promotional events for the year. So why do retail stores have sales in the first place? Retail & Ecommerce Stores Have …

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Shrinkage: Stock Loss

Shrinkage is the inventory lost due to shoplifting, internal theft, damaged goods, or administrative errors done at retail stores. Every year, quarter or half year the retailer conducts a stock count to track all the existing inventory and then compare it with the value of inventory in the books (on the balance sheet). The difference …

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Inventory Turnover

Inventory turnover ratio (IT) measures how many times a company turns its inventory during a certain period of time. It gives an idea about how efficiently a company is managing its inventory. How To Calculate Inventory Turnover? Inventory Turnover Formula: Inventory Turnover (IT) = COGS ÷ Average Inventory To calculate IT you will need the …

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Forward Stock Cover

Forward stock cover measures how long the current stock on hand will cover future forecasted sales periods. This measure is used in inventory management to ensure product availability and adequate stock on hand coverage. It is also used during the buying budget calculation to ensure the inventory ordered is enough to cover sales for the …

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